SaaS Revenue will Double by 2012 as per Gartner

As per the latest report from market research firm Gartner, the SaaS market for Enterprise Application is going to surpass 2007 sales by 27% and the sale will be doubled by the year 2012.

The main driver for the rapid growth of SaaS is office suites and digital content creation. The revenue in the area of Office Suite will witness 99.2 per cent compound annual growth from 2007 to 2012. Web-based SaaS freeware such as Google Apps, Adobe Buzzword, Thinkfree and Zoho will contribute nine percent share of total software revenue by 2012.

The content, communications and collaboration (CCC) contributes the largest way for SaaS enterprise market. The second biggest contributor for SaaS enterprise application is Customer relationship Management (CRM) market.

There is an increased demand for Software as a service for the last few years because most of the companies want to lower their capital expenditure and demand for quick software implementation. Besides, the accessibility and price for global broadband services improved a lot in the last couple of years.

Gartner, however, warned buyers to differentiate SaaS from hosting or application management or application outsourcing vendors. “Because the SaaS/on-demand market is hot, many suppliers are rebranding their hosting or application management or application outsourcing capabilities as SaaS/on-demand,” Gartner analyst Chris Pang said.

Source: ITExaminer.com

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