Firms 'are seeing the value of managed services'

Gennifer Biggs of Business Solutions magazine claimed that many companies are looking to reduce the number of internal IT staff they need and to minimise costs.

She said a large number are opting to take up managed services, such as virtualisation and SaaS to achieve this.

Mike Byrne, group manager of channel services at managed services vendor HoundDog Technology, commented: "The current economic downturn has played a big part in driving adoption because organisations can now get access to functionally rich applications at a cost that better fits their operational profile and usage."

He noted that for some applications, SaaS has become "the norm" rather than an exception.

This comes after a report by market analyst IDC suggested that the SaaS market is expected to increase significantly during 2009.

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