Gartner Predicts 75% of Enterprises Will Prioritize Backup of SaaS Applications as a Critical Requirement by 2028

 Risk of IT Outages Underscores Need for Regular Backup and Recovery of Critical Enterprise Data

Dubai, United Arab Emirates, August 27, 2024 – By 2028, 75% of enterprises will prioritize backup of software-as-a-service (SaaS) applications as a critical requirement, compared to 15% in 2024, according to Gartner, Inc.

SaaS-based applications have become a preferred choice for new and modernized deployments, with the data these applications generate expected to be among the fastest-growing sets of critical enterprise data over the next five years. According to Gartner’s latest forecast, worldwide end-user SaaS spending is projected to grow 20% to total $247.2 billion in 2024, and is forecast to reach nearly $300 billion in 2025,

“The risk of IT outages underscores the urgent need for regular backup and recovery of critical enterprise data,” said Michael Hoeck, Sr Director Analyst at Gartner. “As businesses are more dependent on SaaS technologies, it becomes crucial to ensure that SaaS data is both protected and recoverable. Given the vulnerability of SaaS data to errors, cyberattacks, and vendor mishaps, robust backup solutions are indispensable.”

“Integrating Backup as a Service (BaaS) is essential for safeguarding cloud workloads and maintaining operational continuity. Furthermore, enterprises must understand the shared data responsibility model of SaaS applications and evaluate their vendors’ data protection measures. If these measures are inadequate, third-party solutions should be considered to guarantee comprehensive data protection,” said Hoeck.

Seventy-Five Percent of Large Enterprises Will Adopt BaaS Alongside On-Premises Tools by 2028

“Protection and recovery of SaaS applications have often been a lower priority for many enterprises,” said Hoeck. “This is due to confusion over the native SaaS vendor’s responsibility for data protection, and the lack of industry-level standardization. Limited API-based data access for protection and recovery from native SaaS vendors further complicates effective data protection, slowing support for third-party backup solutions.”

However, the SaaS application backup market is rapidly growing, initially led by specialized startups but now also includes established enterprise backup and recovery software solutions companies. Gartner predicts that by 2028, 75% of large enterprises will adopt BaaS alongside on-premises tools to back up cloud and on-premises workloads.

To effectively safeguard SaaS-based application data, Gartner suggests that organizations focus on:

• Governance Assessment: Include data protection and recovery capabilities in the governance assessment of SaaS applications.
• Vendor Capabilities: Verify the SaaS vendor’s ability to protect and recover data from all possible loss scenarios.
• Third-Party Solutions: Use third-party SaaS backup solutions to complement the native capabilities of SaaS vendors. These solutions can improve administration, centralize and orchestrate protection of multiple SaaS applications, simplify processes, and offer improved granular recovery capabilities.

“As the market matures, it is essential for businesses to conduct thorough governance assessments and verify the capabilities of their SaaS vendors. Leveraging third-party backup solutions can significantly enhance data protection and recovery, ensuring that enterprise data remains secure and accessible,” said Hoeck.

Gartner clients can read more in “Top Trends in Enterprise Backup and Recovery for 2024.”

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