IDC reports Worldwide spending on software as a service (SaaS) reached $4.2 billion in 2004, an increase of 39% over 2003. IDC believes worldwide spending on SaaS will continue to increase over the next five years at a 21% compound annual growth rate (CAGR), reaching $10.7 billion in 2009.
Erin Traudt, research analyst believes that there is no doubt that software as a service has become a driving force within the software industry adding "Indications are that customer adoption will continue over the next five years and spending will remain on the rise." IDC believes software as a service adoption will be driven by customer need to improve business processes, an increased understanding of and interest in the software as a service delivery model, growth in the number of software as a service offerings, and the creation of enablement programs to help independent software vendors (ISVs) take advantage of the software as a service opportunity. Buyers from small and medium-sized businesses and divisions of larger companies are leading the charge as the most frequent customers of software as a service.
The IDC study, Worldwide and U.S. Software as a Service 2005-2009 Forecast and Analysis: Adoption for the Alternative Delivery Model Continues, analyzes the key supplier trends and events impacting software as a service. I am a little surpirsed to see that the report does not talk about price as an important factor pushing adoption. As i go through the report, I would be keen to find out the types of software that are now being made available as SaaS, the no. of such software, the volume of success and notable success and failures of implementation- I would like to see reference of some Fortune 100 customers with the application being used across the globe for enteprise activities. Also would like to understand the expectation exceding factor - by what margin and in the forst place how a number was determined as the target.
Category : SaaS.