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Gartner: SaaS contract language regarding security is lacking

Chris Kanaracus | Aug. 2, 2013
The large majority of people working in IT procurement are "significantly dissatisfied" with the way SaaS (software as a service) vendors define contract language related to security, a feeling likely to persist through 2015, according to a Gartner report.

Spending on SaaS totaled more than US$14.5 billion in 2012 and is expected to top $22 billion by 2015, according to figures Gartner released last year.

Those numbers are being driven not only by growth in pure-play SaaS vendors such as Salesforce.com, but also due to the ongoing shift by traditionally on-premises software vendors like SAP and Oracle to SaaS delivery models.

The nature of SaaS buying is also changing. Procurement is increasingly occurring at the departmental level, such as in marketing or human resources, rather than as part of a centrally planned IT strategy, a trend that could exacerbate the contract risks cited by Gartner.

 

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