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SaaS and Cloud Computing: Tight Budgets are Driving Rapid Growth with SMEs
A recent report from KPGM looks at the state of the Software as a Service market as of 2012.
The Good Key contributors to the rapid growth of the global SaaS market are the following:
- Reduced budgets – SaaS pricing is helping businesses try to do more IT with less money
- Immediate gratification – Unlike traditional software rollouts, turning SaaS applications on is quick and easy
- Rapid adoption by SMEs – SMEs find the SaaS pricing model attractive and have fewer legacy software constraints
The Bad SaaS still needs to overcome the following problems in order to claim success:
- Security
- Network instability
- Longer than anticipated implementation cycles
- Limited integration with existing systems
Steve Watmough, a partner in KPMG’s CIO Advisory team, said “The attraction, especially for smaller business, lies in organisations no longer needing to find funds for infrastructure, deployment or training… SaaS allows for the integration of powerful business apps on mobile devices, meaning that it is only likely to increase in popularity with the corporate environment. The technology ensures employees can work on the same documents in real-time from anywhere on any internet-connected device – and all for a monthly subscription, which can be adjusted with ease.”
The KPMG report summarized the extent of global SaaS market growth expected:
- North American SaaS market: $7.8 billion in 2011 and reaching $12.9 billion in 2015
- Western European SaaS market: $2.7 billion in 2011 and reaching $4.8 billion in 2015
- Eastern European SaaS market: $135.5 million in 2011 and reaching $270.1 million in 2015
- Asian Pacific SaaS market: $730.9 million in 2011 and reaching $1.7 billion in 2015
- Japan SaaS market: $427 million in 2011 and reaching $629.1 million in 2015
