Friday, January 13, 2012 5:51:31 PM
Software-as-a-Service continues to gain popularity among enterprises for its cost-efficient and scalability advantages, and recent research reveals the SaaS market is facing significant expansion.
According to market research firm Global Industry Analysts, the global SaaS market will reach $26.5 billion by 2015, as more companies will seek low-cost enterprise software solutions to accommodate limited IT budget growth, which could slow due to the global economic recession.
"The economic recession triggered the migration of enterprises from conventional on-premise systems to less-expensive on-demand systems, thereby stimulating the growth of the SaaS industry," the report said. "SaaS is on a path of rapid expansion and therefore is expected to overtake licensed software in terms of annual demand in the near term."
The report said SaaS products will increasingly support the needs of small and medium-sized businesses, as that market is largley untapped by cloud service providers.
According to a recent Gartner report, SaaS revenue was projected to total $12.1 billion last year, up 20.7 percent compared to 2010. Meanwhile, the research company expects the SaaS market to reach $21.3 billion by 2015.
-McAfee Cloud Security