Software As A Service Continues To Soar

Gartner says another year of stellar growth for SaaS despite the global financial crisis.

Market for SaaS is forecast to reach $US8b in 2009 up from $US6.6b last year.

It is also expected to double to $US16b by 2013.

Hot areas are –
– horizontals with common processes among distributed virtual workforce teams and web 2.0 initiatives.
– office suites and digital content creation
– enterprise resource planning and supply chain management
– human capital management and procurement
– customer relationship management (now at 18%!)

Key drivers were –
– rapid deployment
– rapid return on investment
– less upfront capital
– decreased reliance on limited implementation resources
– greater competition
– increased focus by mega vendors giving legitimacy to the space

Secondary benefits of a SaaS strategy were –
– backups outsourced
– updates and maintenance outsourced
– resourcing and operations outsourced

Should be good for Saasu and the SaaS Ecosystem.

Thanks to Gartner Research and The Rust Report. Quality reporting as usual.

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