In 2013, 20 percent of enterprise IT work will be done trough cloud computing, and experts predict an acceleration from small and medium-sized businesses. According to William S. McNee, president and CEO of Saugatuck Technology, time has come for software to be widely accepted as a service.

The main reason supporting the increasing acceptance for software as a service (SAAS) is that companies want to decrease operating costs and reduce IT staff. Since Internet is universal, it creates an economy of scale, making it possible to provide services as cheap as possible.

However, less obvious factors support cloud computing as well. For example, it is easier to update and integrate services online. Improvements accumulate without staff, along with the fact that it is easy to mange and use since it does not require installation. There are indications that the benefits of cloud computing are so many that on-premise solutions might decrease significantly.

Cloud computing has been very hot the two previous years, and the trend will continue to accelerate. A survey by Saugatuck show that the amount of companies saying that they would use SAAS in their finance and accounting operations has doubled. In a previous survey, 18.3 percent expected to use SAAS by the end of 2008; two years later the number was up to 39.3 percent. McNee believes that the adaption is even larger and estimates that by the end of 2010, 70 percent of companies will have installed at least one cloud computing application.

Companies that does not adapt to the new circumstances will have a hard time staying competitive. If competitors grasp the trend they decrease their expenses and attain more money to either lower prices or enhance marketing, pushing others out of the market. In the modern fast-paced market, you need to adapt today, to stay ahead in your field.