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Just Blogging -
Software as a Service
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Following the reports about the SaaS benefits, it may be intuitive to confirm how the long-term financial structure of SaaS model helps to endure the current crisis. As there's no need to buy servers or licenses, there's no need to pay upfront costs in any SaaS project. 
| IDC finds:
Software as a Service Market Will Expand Rather than Contract Despite the Economic Crisis "... the harsh economic climate will actually accelerate the growth prospects for the software as a service (SaaS) model as vendors position offerings as right-sized, zero-CAPEX alternatives to on-premise applications." "... IDC has increased its SaaS growth projection for 2009 from 36% growth to 40.5% growth over 2008."
"* By the end of 2009, 76% of U.S. organizations will use at least one SaaS-delivered application for business use.
* The percentage of U.S. firms which plan to spend at least 25% of their IT budgets on SaaS applications will increase from 23% in 2008 to nearly 45% in 2010.
* This market's growth prospects will accelerate the shift to SaaS for the whole value chain as the promise of a recurring revenue stream, and the opportunity to tap OPEX and project-related dollars, will benefit the whole SaaS ecosystem.
* While demand for SaaS is strongest in North America, new contracts from customers in Europe, Middle East, Africa (EMEA) and Asia/Pacific (excluding Japan) also look particularly positive, and IDC expects that by year-end 2009, nearly 35% of worldwide revenue will be earned outside of the U.S.
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Source: IDC
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Last Updated ( Monday, 13 April 2009 15:27 )
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