Software as a service (SaaS) revenue within the enterprise application software market is forecast to be larger than $8.5 billion in 2010, this is up 14.1 percent on the previous year according to Gartner. The research firm forecasts there will be 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.
“After a decade of use, adoption of SaaS continues to grow and evolve within the enterprise application markets. As tighter capital budgets demand leaner alternatives, familiarity with the model increases, and interest in platform as a service and cloud computing grows,” said Sharon Mertz, research director at Gartner, in a statement. “Adoption varies between and within markets, and although use is expanding to a wider range of applications and solutions, the most widespread use is still characterized by horizontal applications with common processes, among distributed virtual workforce teams and within Web 2.0 initiatives.”
“The popularity of SaaS has increased significantly within the past five years and initial concerns about security, response time, and service availability have diminished for many organizations as SaaS business and computing models have matured and adoption has become more widespread,” Mertz said.
For the full paper see Gartner on: http://www.gartner.com/it/page.jsp?id=1406613