Gartner predicts rise in SaaS adoption during 2010
Friday 23rd July 2010
Global Software-as-a-Service (SaaS) revenue within the enterprise application software market is forecast to surpass $8.5 billion (£5.5 billion) in 2010.
According to Gartner, market revenues are set to increase by 14.1 per cent on last year.
The research company says the rapid adoption of managed hosting services has contributed to growth "in varying degrees" across the enterprise software markets.
Gartner predicts there will be a shift in total SaaS revenue from just over ten per cent of the combined markets in 2009, to more than 16 per cent in 2014 as the technology continues to gather momentum.
"After a decade of use, adoption of SaaS continues to grow and evolve within the enterprise application markets," said Sharon Mertz, research director at the consultancy.
"As tighter capital budgets demand leaner alternatives, familiarity with the model increases, and interest in SaaS and cloud computing grows."
Gartner recently predicted a 3.9 per cent increase in overall enterprise IT spending for 2010.
Written by Debra Hastings-Henry