SOFTWARE INDUSTRY NEWS |
SaaS revenue to grow five times faster than traditional packaged software – IDC |
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In a recent study, International Data Corporation (IDC) has said that the Software as a Service (SaaS) market clocked worldwide revenues of $13.1 billion in 2009, and has forecast this to hit the $40.5 billion mark by 2014. IDC's prediction puts the market's compound annual growth rate (CAGR) at 25.3 percent. The market intelligence and advisory services provider expects that by 2012, less than 15 percent of net-new software firms coming to market will ship a packaged product (on CD), and by 2014 about 34 percent of all new business software purchases will be consumed via SaaS. SaaS delivery will constitute about 14.5 percent of worldwide software spending across all primary markets. Just a few days ago, research firm Gartner had said that it expects revenues from SaaS within the enterprise application software market is forecast to surpass $8.5 billion in 2010. Robert Mahowald, vice president, SaaS and Cloud Services research at IDC says that the SaaS model has become mainstream, and is quickly coming to dominate planning – from R&D, to sales quotas, to partnering, channels and distribution – of all software and services vendors. Other points that IDC makes in its research are:
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IDC's prediction puts the market's compound annual growth rate (CAGR) at 25.3 percent. The market intelligence and advisory services provider expects that by 2012, less than 15 percent of net-new software firms coming to market will ship a packaged product (on CD), and by 2014 about 34 percent of all new business software purchases will be consumed via SaaS. SaaS delivery will constitute about 14.5 percent of worldwide software spending across all primary markets.
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