24 Feb 2009

Hosted services 'are the smart choice'

Smart companies are choosing to adopt hosted technology to cut costs during the credit crunch, an expert asserts.

Industry solutions firm NetworkedWorld says businesses can benefit from higher quality IT system standards despite reducing budgets.

"Cloud Computing allows organisations to get the best of both worlds. Large companies, who have been sitting on the fence when it comes to deploying SaaS [software-as-a-service] solutions, now see the benefits of maximising reduced IT budgets by implementing web-based solutions," the company states.

Adopting the model allows businesses to incorporate a payment plan which does not use capital expenditure and instead only pays for what is used, according to the firm.

Recent research by Ernst and Young reveals half of companies plan to reduce IT budgets and supply chain costs, but intelligent organisations realise the value of information technology in the chain, the company concludes.

Peter Rowell, executive chairman at technology provider Regent Partners, recently said applications such as SaaS are propping up the IT sector by keeping businesses afloat during the economic downturn.