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SaaS revenue within Enterprise Application Software to surpass $8.5 billion in 2010 – Gartner |
Worldwide software as a service (SaaS) revenue within the enterprise application software market is forecast to surpass $8.5 billion in 2010, up 14.1 percent from 2009 revenue of $7.5 billion, according to Gartner, Inc.
 Gartner says rapid adoption of SaaS has contributed to growth in varying degrees across the enterprise software markets, because of which it expects a shift in total SaaS revenue from just over 10 percent of the combined markets in 2009, to more than 16 percent of these combined markets in 2014. Gartner defines SaaS as software that is owned, delivered and managed remotely by one or more providers. The provider delivers an application based on a single set of common code and data definitions, which is consumed in a one-to-many model by all contracted customers anytime on a pay-for-use basis or as a subscription based on use metrics.
Sharon Mertz, research director at Gartner says adoption varies between and within markets, with the most widespread use still characterized by horizontal applications with common processes, among distributed virtual workforce teams and within Web 2.0 initiatives. Gartner estimates 75 percent of the current SaaS delivery revenue could be considered as a cloud service, and that could exceed 90 percent by 2014 as the SaaS model matures and converges with cloud services models. During 2009 and 2010, the significant industry buzz surrounding SaaS and other off-premises models has shifted to cloud computing - a broad concept, of which SaaS is only one variation, representing the application layer of the overall cloud architectural stack.
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