SaaS Market Will Double In Next Five Years

According to the analysis for the market of “Software As a Service, SaaS“, it is grown by 20.7% in 2011 as if compared with 2010 and reach $ 12.1 billion, and it will continue until 2015 – first and then the sales will amount to 21.3 billion dollars, i.e. more than twice as many as in 2010.

Under the SaaS, it includes software, which are owned, managed and delivered remotely by one or more service providers. Consumers use the software by subscription or on contract and pay for services as consumption.

Analysts say that the popularity of this model to applications is growing. They explain this by saying that budget cuts forced businesses to look for cheaper ways to use the software, services, SaaS becomes more mature, and cloud computing technologies are attracting more interest. In connection with the development of SaaS services and the prevalence reduced initial concerns about security, response time and service availability. Vendors expanding network of partners to provide these services, increased industry specialization of services, strengthening community partners and consumers.

In the last couple of years some buzz around SaaS subsided and shifted towards cloud computing – a broader concept that also covers technology and SaaS, which is a layer of applications in the general stack architecture of clouds. However, the key indicator of the success of SaaS cloud computing concept is now about 75% of services and SaaS can be considered as cloud services, and by 2015 this figure will reach 90%, since the SaaS model will become more mature and fuse with the cloud solutions model.

The biggest market segment of SaaS is customer relationship management (CRM). According to forecasts, in 2011, its volume will reach $ 3.8 billion (in 2010 – $ 3.2 billion) and will be 32% of the market SaaS. According to analysts, with the development of services “CRM-on-demand” is expanding its distribution.

Revenue from the delivery of ERP SaaS model will reach $ 1.7 billion (in 2010 – $ 1.5 billion). In fact, the ERP market share in the SaaS model accounted for only 7%. With the SaaS model most commonly used means of human resource management and enterprise resource management and production approach, SaaS almost does not apply.

ESDS

Marketing Team at ESDS Software Solution Pvt. Ltd.
ESDS