Cloud services is growing at a faster phase as compared to traditional IT outsourcing, particularly in the USA. A lot of cloud computing companies are focusing on cloud based solutions to their clients. However Software-as-a-Service (SAAS) providers are taking different routes.

Building cloud computing software typically takes a good amount of IT applications. Hence, a large percentage of outsourcing clients are taking a long look at SaaS products. Emerging SaaS providers can take over an entire functional stack like HR, CRM, email on cloud computing architecture and displace the compulsory hosting provider and the application development and maintenance provider. This is because the SaaS provider can provide the hosting and the application, and the need to heavily customize the solution goes away in favor of configuration.

Enterprise clients who have adopted cloud computing services in the earlier times have realized that the cloud options are not always the cheapest. Clients were initially impressed by speed of implementation cloud services offers and availability of features. However, building cloud computing software to replace existing systems only makes sense when the expected savings by flexible computing and storage space is more than the investment in moving to the cloud computing architecture.

Most companies today are buying public cloud solutions on a small workload basis. However, corporate IT several times still prefer dedicated services - this could be having a private cloud hosted solution by themselves or on their trusted provider’s data centers.

Emerging SaaS providers are growing the fastest, but their customer base is small. This opportunity is really good and a lot of deals are coming across mid-sized cloud solutions hosting companies. But due to lack of their experience in managing large, multi-sources cloud based solutions, they are not able to deliver at times. But a lot of western IT providers are expanding into offering cloud computing software based services. Indian IT service provider’s application transformation work is a perfect entry to a cloud services based platform.