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"The SaaS model has become mainstream,” according to Robert Mahowald, vice president of SaaS and Cloud Services research at IDC. That statement was made in light of a recent study conducted by market research firm International Data Corporation (IDC).
The market research firm expects Software as a Service (SaaS) revenue to touch $40.5 billion by 2014. With the worldwide SaaS market generating $13.1 billion in revenue last year as per IDC's research, it will have to manage a compound annual growth rate of 25.3% through 2014 to live up to IDC's expectations.
Another key part of IDC's prognosis is SaaS share of the total software market:“By 2012, IDC expects that less than 15% of net-new software firms coming to market will ship a packaged product (on CD). By 2014, about 34% of all new business software purchases will be consumed via SaaS, and SaaS delivery will constitute about 14.5% of worldwide software spending across all primary markets.”
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mjaniec
April 11, 2011 at 8:58pm
Sooner or later SaaS will constitute majority of enterprise application sales.
New entrants into this market can potentially be disruptive for incumbents, unless the later will realize the threat and start "consolidate" the market soon enough.
From the user perspective, SaaS means more flexibility and more choice. The problems that still require solution are data portability and interoperability between SaaS applications.
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