Worldwide Software as a Service Revenue Expected to Reach $14.5 Billion in 2012 - Slide 6

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SaaS revenue in Latin America is forecast to total $419.7 million in 2012, up from $331.1 million last year. In Latin America, SaaS has become most popular to deploy in the areas of email, financial management (accounting), sales force automation and customer service, and expense management. While regional adoption will be positive, it is fully expected that Brazil and Mexico will drive a majority of adoption and revenue opportunities. In the next two years, buyers are most likely to purchase SaaS solutions in packaged CRM, procurement and ERP applications.

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."

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