CRM SaaS industry

April 14, 2011

Companies worldwide are looking to bring costs down of their IT operations. With rich talent pool of SaaS Developers, India is contributing significantly to SaaS Development worldwide. SaaS has big role to play in Web 2.0 and will make it possible for other sites to consume data and functionality from SaaS site. This kind of sites will help create mashups and highly interlinked websites.

Metrics on SaaS industry:

  • IDC Projects One Third of all Software Delivered from the Cloud
    According to research and analyst firm IDC, the Software as a Service (SaaS) market achieved worldwide revenues of $13.1 billion in 2009. IDC predicts the SaaS market to reach $40.5 billion by 2014, representing a compound annual growth rate of 25.3%. By 2014, approximately 34% of all new business software purchases will be procured via SaaS and SaaS delivery will constitute about 14.5% of worldwide software spending across all primary markets. IDC also indicates that “business applications will account for just over half of the market revenue.” The rest of the market growth will occur on cloud platforms as businesses begin to purchase cloud services instead of hosted services.
  • ABI Forecasts Hosted Market
    Market research firm ABI Research forecasts the global market for hosted services will exceed $34 billion in 2012, of which the North American market will account for $11.6 billion.
  • Cloud Considered Viable by Most
    In July 2010, analyst firm Yankee Group revealed that more than half of U.S. enterprises now consider SaaS and cloud computing a viable technology, with favorable views on cloud jumping by more than 50 percent in the most recent year. The analyst firm research report stated that” cloud computing is on the cusp of broad enterprise adoption.”
  • CRM Software as a Service Compared to all CRM Software
    Analyst firm Gartner predicted that by 2011, 25 percent of new business software will be delivered by SaaS.

According to a Gartner Group estimate, SaaS sales in 2010 have reached $9B, up 15.7% from 2009, and are projected to increase to $10.7b in 2011, up 16.2% from 2010. Gartner Group also estimates that SaaS apps, which accounted for a little more than 10 percent of the total enterprise software market last year, would represent at least 16 percent of worldwide software sales by 2014.

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