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SaaS: SMBs Set the Trend with SaaS

By Dick Weisinger

Enterprise-class software is usually equated to big dollars that only big companies can afford.  The trend had long been for large enterprises to lead software adoption followed by lighter versions of similar software eventually trickling down for use at smaller companies.  But SaaS is turning this trend on its head.  SMBs are leading the way in adoption of SaaS.

AMI-Partners report that globally 4% of SMB software dollars are already being spent on SaaS (those companies with less than 1000 employees) and they forecast that SMB SaaS spending on CRM and ERP offerings will grow 17% in 2007.  The biggest gorwth is predicted to happen in the UK, France, the US and Germany.  In the US, SMBs spent more than $1 billion on CRM and ERP SaaS in 2006.

SaaS particularly appeals to the SMB market because it disrupts the high costs normally associated with software.  With minimal IT spending and maintenance, an SMB can gain access to sophisticted software.

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