SaaS market will grow by 21% this year, says Gartner
- Reduce text size Decrease text size
- Increase text size Increase text size
- Print article Print
- Jump to comments Comment
- Share this article Share
- Email article to a friend Email
Capital constraints, increased familiarity and the rise of cloud driving rapid growth in the software-as-a-service market, analyst company finds
Revenue for the worldwide software as a service (SaaS) market will grow by 21% in 2011, according to new research from Gartner.
The analyst company says the market will be worth $12.1 billion this year, up from $10 billion in 2010. It projected continued “healthy” growth in the market in the coming years, predicting a combined value of $21.3 billion by 2015.
Gartner's VP of research, Tom Eid, said this growth was being driven as "tighter capital budgets demand leaner alternatives, popularity and familiarity with the model increases, and interest in platform as a service (PaaS) and cloud computing grows," Eid said.
Customer relationship management (CRM) was the largest market for SaaS, with the SaaS CRM with that market forecast at $3.8 billion in 2011. The market for SaaS-based content, communications and collaboration applications will be worth $3.3 billion of revenue in 2011.
Though software-as-a-service is generally considered a subset of cloud computing, Eid asserted only around 75% of SaaS offerings could be regarded as cloud services. The remaining 25% are too locally or vertically focused, or do not have scalability to be considered cloud offerings. However, the report added that the proportion of SaaS offerings that are cloud-based could reach 90% by 2015.
The big question for ISVs is how to take advantage of this and grab more than their fair share...here's one take on the keys to success.
This ebook outlines the Mindset, Org and GTM tactics required for success...http://www.cloudbook.net/resources/stories/the-basic-blueprint
Report this comment »