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SaaS: Strong Growth Ahead

By Dick Weisinger

Gartner reports that corporate spending for SaaS is ballooning and that it is on a trajectory for tremendous growth. Enterprises are expected to spend more than 27 percent than last year, $6.4 billion. And by 2012, they expect that the amount will jump to $14.8 billion. Of that total SaaS market, content, communications and collaboration products make up $2.1 billion, and that segment is expected to grow to $4.7 billion by 2012.

Gartner is only considering OnDemand applications and doesn’t consider infrastructure services being offered as SaaS. Roadblocks that had been constraining the growth of SaaS are being removed, and that’s making SaaS a more compelling technology choice. Fast bandwidth has become widespread. Security and reliability concerns still exist, but concern around it has diminished.

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