Most SaaS providers will use open source by 2010

The majority of all software-as-a-service (SaaS) providers will incorporate open source technology in two years time, according to Gartner.

Cost cutting will lead to the move, said the research company, which predicted that 90 per cent of all providers will use the new technology.

Open source will be used in the operating system, application server of at a database level and will make up 30 per cent of an application, said Gartner.

Robert DeSisto, vice president at Gartner, said: "The more SaaS vendors use open source in the technology stack, the lower their software acquisition cost becomes."

He added that users should not expect the price cuts to be passed on to them, as it will most likely be used to increase profitability or invested in research and development.

Mr DeSisto stated that companies should make sure they govern the use of any open source SaaS offering, to ensure companies do not breach patents.

It was recently reported that the weak economy may boost SaaS, as it presents lower risks and costs.

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