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Home » SaaS Market Expected to Grow By 25 Percent a Year Until at Least 2014

SaaS Market Expected to Grow By 25 Percent a Year Until at Least 2014

July 29, 2010
Managing Automation

You might say the software-as-a-service model is approaching the tipping point. In a recent forecast, IDC predicts that the SaaS market for enterprise applications and other software will reach $40.5bn by 2014, growing at a 25.3-percent annual clip.

The market stood at $13.1bn in 2009, according to IDC.

Sales of traditional packaged software and perpetual license revenue are declining, according to IDC, and the industry is shifting toward subscription models. This will produce a nearly $7bn-decline in worldwide software license revenue in 2010. "As a result, a permanent change in software licensing regime will occur," IDC said.

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