Worldwide Software as a Service Revenue Expected to Reach $14.5 Billion in 2012 - Slide 5

Email     |     Share  
1 | 2 | 3 | 4 | 5 | 6 | 7
Next Worldwide Software as a Service Revenue Expected to Reach $14.5 Billion in 2012-5 Next

While the Japanese economy is still struggling and IT budgets are limited, the demand for SaaS solutions is increasing due to their lower implementation costs and faster deployment times. SaaS revenue in Japan is forecast to reach $495.2 million in 2012, up from $427 million in 2011. Gartner forecasts that growth of the SaaS market in Japan through 2015 will be led by CRM and email/groupware, which already have actual demand. Users have found that using SaaS reduces the burden of application management, increases the ease and agility of deployment, and reduces initial costs of implementation. In addition, since the 2011 earthquake and tsunami, users have looked to SaaS adoption as a defense against future power outages and disasters. However, many companies are still concerned about SaaS-related issues, such as data security risk, true cost-effectiveness and the difficulty of linking with other systems.

Worldwide software as a service (SaaS) revenue is forecast to reach $14.5 billion in 2012, a 17.9 percent increase from 2011 revenue of $12.3 billion, according to Gartner, Inc. SaaS-based delivery will experience healthy growth through 2015, when worldwide revenue is projected to reach $22.1 billion.

"After more than a decade of use, adoption of SaaS continues to grow and evolve regionally within the enterprise application markets," said Sharon Mertz, research director at Gartner. "Increasing familiarity with the SaaS model, continued oversight on IT budgets, the growth of platform as a service (PaaS) developer communities and interest in cloud computing are now driving adoption forward."

Although growing interest has been observed in vertical-specific software, the most widespread use is still characterized by horizontal applications with common processes, among distributed virtual workforces and within Web 2.0 activities.

"The top issues encountered when deploying SaaS vary by region," Ms. Mertz said. "Limited flexibility of customization and limited integration to existing systems are the primary reasons in North America. In EMEA, network instability is the issue most frequently encountered, whereas longer-than-expected deployments are the top issue in Asia/Pacific. Vendors are more aggressively pursuing SaaS buyers outside traditional markets by offering local-language availability, forming alliances and constructing data centers to accommodate local requirements."

More Slideshows:

Getting Consensus on Business Requirements: Tips and Traps The toughest job in the requirements definition stage is to get stakeholder agreement as a systematic, expected deliverable in the project cycle.

Six Reasons Windows 8 Could Be a Threat to the iPad Reasons why Windows 8 is fierce competition.

Top 10 Highest Paying Cities for Technology Jobs Big cities reign supreme for high paying technical positions.


Related Topics : A Big Market for Big Data Jobs, Midmarket CIO, IT Management Automation, SharePoint, Technology Markets

More Slideshows

IT_Man89-290x195 9 Tips for Running a 'Tween' Company

Advice and tips for entrepreneurs and companies that are no longer startups but not quite ready for an IPO, also known as "tweens." ...  More >>

IT_Man88-190x128 Top 5 Trends Affecting Women-Owned Micro Businesses

Learn more about the challenges and opportunities presented to women leaders, especially micro-business owners. ...  More >>

Analytics21-190x128 5 Ways to Avoid Becoming 'Digital Prey'

Future IT leaders will need to seek technologies that eliminate silos in order to deliver the right information to the right person within the right application environment at the right time. ...  More >>

Subscribe to our Newsletters

Sign up now and get the best business technology insights direct to your inbox.