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The shift towards SaaS type services continues

The SaaS market continues to grow very strongly as highlight by the analysis firm Gartner, Inc. They're forecasting Worldwide SaaS revenue's of $7.5 billion in 2009 within the enterprise application markets. This is a 17.7 percent increase from 2008. By 2013 Gartner are predicting a massive worldwide SaaS revenue of over $14 billion. The breakdown on the figures is below (in Millions of $):

 

  2009 2008
Content, Communications and Collaboration (CCC) 2,573 2,143
Office Suites 68 56
Digital Content Creation (DCC) 62 44
Customer Relationship Management (CRM) 2,281 1,872
Enterprise Resource Planning (ERP) 1,239 1,176
Supply Chain Management (SCM) 826 710
Other Application Software 472 387
Total Enterprise Software 7,521 6,388

Source: Gartner (November 2009)

Interestingly the growth continues in all sectors despite the global recession. The downturn seems to be a catalyst for SaaS growth because of lower capital outlay. There is also increasing demand from users for self-service applications. In the SaaS website / web application monitoring marketplace Gomez, Inc, who have been enjoy considerable growth, were acquired by Compuware, an on-premis software provider, last month.

The recent growth SaaS and acquisitions continues to demonstrate the shift in demand from on-premis software/hardware solutions to on-demand services. This  'something-as-a-service' effect is being echoed across other tech markets including gaming. The Kristian Segerstrale, the CEO of Playfish who were acquired by EA this week, said: "The video-gaming market is in the middle of this fundamental tectonic-plate shift, away from being a physical product-driven industry to being a digital service-driven industry"

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