Blueshift Ideas Says SaaS Demand Growing, Not So Much For IaaS

In a series of tweets, Blueshift Ideas notes that demand is growing for software as a service, or Saas. Infrastructure as a service, or IaaS, as been slow to be adopted by large enterprises.

Blueshift notes that enterprise and government organizations are more likely to focus on software as a service, then infrastructure. These companies or governments are more interested "in hosting lower risk discrete software applications in the cloud." Blueshift says that salesforce.com (NYSE: CRM) and Microsoft (NASDAQ: MSFT) have been listed as the leaders in SaaS.

The San Francisco-based research company says that data center consolidation and virtualization is a higher priority for enterprise and government IT personnel, as opposed to outsourcing infrastructure.

The wide-scale shift to cloud computing is not happening, and companies are developing alternative solutions and keeping the majority of its secure data in house. "Private cloud and hybrid solutions are gaining in popularity," Blueshift wrote.

The research firm also notes that small businesses, startups and medium sized businesses are using cloud the most. The larger companies and governments are the slowest to adapt. Government consolidation of legacy applications has proved to be more difficult than expected.