Why SaaS is Exploding: A whitepaper

Dave Key and Technology Council of Southern California

Virtually everyone agrees the SaaS market is growing incredibly quickly; Gartner predicted cloud growth would be 21% in 2011. IDC predicts SaaS growth at 25.3% CAGR through 2014. Forester predicts SaaS will account for 26% of the package software market by 2016, while Deloitte forecasts that only 4.3% of On-Premise software spending will be replaced by SaaS.

This white paper examines the converging forces driving the acceleration of SaaS resulting in an explosion of new SaaS applications and customers that will further accelerate the SaaS market. Nearly every product category will have a SaaS alternative providing heady competition to traditional software products, and those offerings are gaining market share over their on-premise competitors.

Top factors driving SaaS adoption by software vendors:
1) Customers are demanding SaaS applications
2) Client software is moving to a consumerized, HTML5 interface
3) Server software is moving to the Cloud
4) Software vendors are joining the stampede moving to SaaS
5) VARs and System Integrators are getting on board the SaaS movement
6) Most new software venture investments are concentrated in SaaS, mobile, big data, and social – others need not apply…
7) Software M&A is strongest for SaaS companies driving more software companies to become SaaS companies

You can download and view the whole whitepaper here for free: Technology Council – Why SaaS is Exploding

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