It's still a transition for the market though, Scott says, and not all customers are ready to fully embrace the cloud. Many European companies are adopting the technology at a slower pace than U.S. counterparts. GFI will continue to offer on-premise installations as well as cloud-based services as the company transitions its dozens of to a hosted model.

Network World staff writer Brandon Butler covers cloud computing and social collaboration. He can be reached at BButler@nww.com and found on Twitter at @BButlerNWW.