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SaaS: Strong Growth despite Recession
Despite the on-going recesson, the SaaS/on-demand market has been growing at a healthy pace in 2009. Gartner estimates the annual SaaS growth for 2009 to come in around 18 percent, reaching $7.5 billion, compared to $6.4 billion for 2008.
The segments of SaaS that have experienced the greatest growth are content, communications and collaboration (CCC) and customer relationship management (CRM) applications.
Gartner predicts that the SaaS market will nearly double by 2014, exceeding $14 billion by 2014.
Gartner analyst Sharon Mertz said, “The composition of the worldwide SaaS landscape is evolving as vendors continue to extend regionally, increase penetration within existing accounts and ‘greenfield’ opportunities, and offer more vertical-specific solutions as part of their service portfolio or through partners.
“Adoption of the on-demand deployment model has continued to grow as on-demand vendors have extended their services through alliances, partner offerings, and more recently, by offering and promoting user application development through platform-as-a-service (PaaS) capabilities.”
