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New numbers from research company Gartner see the market growing 27% this year. Here's what's spurring the demand.
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By John McCormick
Worldwide software-as-a-service revenue in enterprise applications markets will grow 27% this year, with 2008 sales expected to exceed more than $6.4 billion, according to just-released numbers from Gartner. And, says the market research company, SaaS sales will double between now and 2012.
Gartner defines SaaS "as software that is owned, delivered and managed remotely by one or more providers." And Gartner says the enterprise application software markets it studied includes content, communication and collaboration (CCC), customer relationship management (CRM), digital content creation (DCC), office suites, enterprise resource planning (ERP), and supply chain management (SCM).
"The popularity of the on-demand deployment model has increased significantly within the last four years. Initial concerns over security, response time, and service availability have diminished for many organizations as SaaS business and computing models have matured and adoption has become pervasive," said Sharon Mertz, research director at Gartner, in a statement released with the report.
Spurring demand, says Gartner, are the availability of bigger broadband networks, the demand for rapid applications delivery, and, not surprising, the increased pressure on IT professionals to find more cost-effective means of delivering services to employees.
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