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Three-quarters of organizations believe that server virtualization will drive adoption of software-as-a-service (SaaS), according to new research released today by web hosting firm Hostway.

Over 60 per cent of respondents said that they plan to adopt SaaS in some form over the next five years, and 45 per cent believe that the technology had not taken off until recently because of the lack of available virtualization technologies. Prior to server virtualization, SaaS providers found it difficult reliably to offer software on demand, according to Hostway.

“Without virtualization the business model for SaaS would not be viable,” said Hostway director Neil Barton. “The business model for SaaS means you need to get a high level of utilization from the servers that the applications in the cloud sit on. Virtualization enables this. The message to application vendors is that you need to either SaaS-enable your applications yourself, or partner with people who can allow your applications to be offered as a service.”

Source: VNUnet