Revenues from software as a service (SaaS) should reach $8 billion in 2009, up 21.9 percent from last year, according to analysis and consulting firm Gartner.
“The adoption of SaaS continues to grow and evolve within the enterprise application markets as tighter capital budgets in the current economic environment demand leaner alternatives, popularity increases, and interest for platform as a service and cloud computing grows,” said Sharon Mertz, research director at Gartner.
“Adoption of the on-demand deployment model has grown for nearly a decade, but its popularity has increased significantly within the last five years,” Mertz said. “Initial concerns about security response time and service availability have diminished for many organizations. As SaaS business and computing models have matured, adoption has become more widespread.”