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SaaS: Spending on Cloud Applications to top $50 Billion by 2024
Businesses are expected to spend $12 billion this year on cloud-based SaaS applications, according to analyst numbers compiled by price comparison company Better Buys. Over the next eight years, SaaS spending is expected to increase to $50 billion. The growth is attributed especially to strong interest in SaaS from small and medium sized companies that account for almost two-thirds of the spending. Businesses select SaaS because it allows them to be more efficient and enables their companies to grow more quickly.
SaaS subscription growth has been particularly strong in the areas of business intelligence, security, IT, and enterprise vertical applications.
Better Buys summarizes in their report that “What’s bolstering this expansive growth? Shifts in technology, particularly mobile devices and reliance on digital… Subscription models now account for more than 50 percent of new software implementations over traditional on-premise licenses… By 2020, about a quarter of organizations in emerging regions will be running their core CRM systems via SaaS, a 10 percent increase over 2012. And… 85 percent of small business executives are willing to invest more in SaaS solutions over the next five years.”
Other findings from the report include:
- By 2019, 90 percent of mobile data traffic will be enabled by cloud applications
- The primary device used by 43 percent of small business owners is mobile
Source: Better Buys 2016 Report on the State of SaaS
Couldn’t agree more with you Dick! SaaS is no doubt the latest trend in the market. When combined with Cloud, it offers a scalable customer identity management platform which is an another high demand of businesses today.
Serrah Mark