Increased regulatory compliance measures have become an even more attractive reason for a shift into the cloud for some companies, according to Osterman Research, a leading market research firm. LiveOffice, a top provider of SaaS email archiving, announced record-setting revenues in the fourth quarter of 2009 following its development of highly customizable security and email archiving measures.

The ability to maintain records of interactions between employees can be costly, but shifting it into the cloud allows companies to keep accurate books at a much lower cost.

"Clearly, SaaS-based archiving has become a viable alternative to on-premise archiving, even for very large organizations with thousands of users," said Michael Osterman, principal of Osterman Research. "The ability to satisfy regulatory and legal obligations, as well as the ability to manage storage more effectively, often at a reduced cost, is a key benefit offered by many SaaS-based archiving vendors."

SaaS providers are expecting 2010 to be even more successful than the second half of 2009. Mimecast, an SaaS provider, reported February 1 that it expects 70 percent of companies who use some form of cloud computing to expand further into the cloud in the coming year.
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