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October 03, 2006Boom time coming for SaaS vendors
The market for software as a service is set to boom over the next five years a which is great news for companies such as Salesforce.com and others but could spell worse times ahead for traditional software vendors.
According to Gartner the software as a service (SaaS) market will grow from five per cent last year to accounting for 25 per cent of new business software revenues by 2011.
Robert DeSisto, research VP at Gartner, said trends in enterprise software have certainly begun to change.
However, DeSisto added SaaS is still well short of maturity and said many deployments are still focused on either individual departments or within the small to medium-sized enterprise sector.
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