IDC Prediction: SaaS Revenue Growth 6X Faster Than All Software

Discussion in 'LoyaltyMatch' started by @LoyaltyMatch, Feb 1, 2011.  |  Print Topic

  1. Those who follow SaaS market closely know that SaaS growth rate is amazing and we are seeing more and more enterprise adoption. This belief has been confirmed by a new IDC study which predicts that SaaS is on a tear with its revenues at 6X growth rate than all software. It should also be noted that the perpetual license market fell by 7 Billion in 2009. Maxwell Cooter of TechWorld writes an article pointing out to the trajectory taken by SaaS in the next five years.

    Some of the predictions from the study are:

    • SaaS revenues set to grow 6X faster than all software
    • SaaS is expected to show compound annual growth (CAGR) of around 26 percent up to 2014
    • Most of the SaaS is delivered to US companies and they have 71% of the market. However, it will get more global by 2014. It clear matches the trend we see in Asia where SaaS adoption is increasing at a faster rate than before
    • Interestingly, the survey also found that 26% of the companies are still resistant to moving to clouds. Even though we also observe this resistance, we do expect it to slowly go down in the next few years.
    The survey highlights an interesting trend sweeping the industry. Business users, especially the enterprise ones, are very comfortable with consuming applications in the form of services. One of the drivers we notice from our research and analysis is Agility. SaaS, as a result of on-demand availability and its collaborative nature, significantly increases the performance of the organizations. This fact, along with the cost savings, are the biggest motivators for large scale SaaS adoption.

    Source: IDC

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