IDC, one of the leading industry analyst firms, just unveiled their new report "Worldwide Software as a Service 2010-2014 Forecast: Software Will Never Be the Same"
The report says that IDC research shows SaaS growing six times faster than on-premises software, forecasting compound growth of 26% per year through 2014. With Intacct planning 100% growth this year, I'd say we are right on top of this trend.
Robert Mahawold who authored this report is a good and smart guy - he's deeply rooted in both the traditional on-premises software and the new cloud computing world.
Other key tidbits from the new IDC report:
- In 2009, he on-premises software market shrunk by $7 billion while SaaS grew to $13.1 billion.
- On premises ERP software will be particularly badly hit with ERP upgrades being delayed or cancelled and with CAGR expected to be just five percent.
- IDC expects SaaS to grow to $45 billion by 2014, a CAGR of 25.3%.
- Fewer than 20 percent of new software products and under 60 percent of refreshes will be destined for company data centers.
The kicker - IDC found that today 26 percent of companies are still resistant to the idea, saying that had no plans at all for a move to cloud computing. This rose to about 40 percent for companies with fewer than 100 employees.
The implication is that as the word spreads about the very high satisfaction and ROI businesses are achieving from SaaS and cloud computing, the growth rate for SaaS will rocket even higher.
For the original article by Daniel Druker : click here
