Friday, 20 June 2008

Business SaaS Revenue to Double by 2012 in US

Demand for software as a service (SaaS) business applications in the US business market is growing at a steady pace across all sizes of business and vertical markets, reports In-Stat.
Steadily increasing US hosted application revenues, from 8 billion in 2008 to 16 billion by 2012, are expected, the high-tech market research firm says.

"The main benefits of hosted applications that resonate across vertical markets are scalability, Total Cost of Ownership (TCO), and remote accessibility," says Jeff Jernigan, In-Stat analyst.

"Also, the need for IT support for business applications is greatly minimized if not eliminated due to the centralized, vendor-supported management of the application."

Recent research by In-Stat found the following:

• The healthcare market is among the most satisfied current hosted application user segments.

• The education market should be an important target market for providers, as it is a market full of thought-influencers.

• Despite strong current adoption, hosted Web collaboration application providers need to do more to reach new customers.