On-demand data: All sizes of U.S. businesses will be looking at SaaS as benefits resonate across vertical markets

06/30/2008


Demand for Software-as-a-Service (SaaS) business applications in the U.S. is growing at a steady pace across all sizes of business and vertical markets, reports Scottsdale, Ariz.-based In-Stat . Steadily rising U.S. hosted application revenues—from $8 billion in 2008 to $16 billion by 2012—are anticipated, the high-tech market research firm says.

"The main benefits of hosted applications that resonate across vertical markets are scalability, total cost of ownership, 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 underscored these trends:

  • The health-care 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.

The research— Demand for SaaS Business Applications by US Vertical Market —covers the U.S. market for SaaS. It explores the drivers and inhibitors for adoption, as well as whom respondents would turn to for more information about these applications. Four major vertical markets are covered:

  • Education

  • Government

  • Healthcare

  • Professional Services

Survey data from these four vertical markets is presented and compared to results from respondents across the entire U.S. market. A forecast of SaaS revenue in the US market through 2012 is provided.

Access the report here.





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