Revenue accrued through software as a service (SaaS) is set to grow substantially faster than traditional packaged software through until 2014, a new study has predicted.
According to the International Data Corporation (IDC), the SaaS market had worldwide revenues of $13.1 billion during 2009, a figure which the group expects to soar to $40.5 billion by 2014.
Furthermore, the IDC claims that in four years approximately 34 per cent of all new business software will be SaaS and the technology will constitute about 14.5 per cent of worldwide software spending.
Robert Mahowald, vice president of SaaS and cloud services research at IDC, explains that the cloud-based service is now becoming increasingly mainstream.
"As SaaS services become available from established vendors new models for accessing functionality in the cloud create lower-cost options and more tailored models for consuming IT services," he adds.
The Association for Information and Image Management has advised that organizations familiarize themselves with SaaS and cloud computing technology.
Posted by Rachel Wheeler