Even with the global economic recession, the SaaS (Software-as-a-Service) market has been growing at a healthy rate over the past few years. This growth is being driven in large part by customers’ need to reduce total cost of ownership. This provides plenty of opportunity for software vendors to deliver customer value.
A recent Gartner study showed the SaaS market still growing at a very healthy 20% rate from 2010 to 2011, reaching $12 Billion in 2011, with North America about two thirds of that, and growing to over $20 Billion by 2015. Forrester Research is even more optimistic, putting the global SaaS market size at $21 Billion in 2011, with projections to grow to over $90 Billion by 2016.
A study last year by InformationWeek Analytics found about 60% of companies are using SaaS solutions today.