SaaS Grows, ERP Slows

In a new report released by IT consultancy firm Gartner, the highlight is that there is continued growth in software-as-a-service (SaaS) applications with small and medium sized businesses. The report called Market Trends: Software as a Service, Worldwide, 2008-2013, estimates that global software-as-a-service revenue will reach $7.5 billion this year, a 17.7 percent increase from 2008 revenue of $6.4 billion. The report also predicts the SaaS market will grow through 2013 when worldwide SaaS revenue will total more than $14 billion.

Gartner shows that this growth is in areas such as content, communications and collaboration (CCC) and customer relationship management (CRM). Currently CRM and ERP sales make up the bulk of SaaS sales, but CCC, CRM and SaaS-based call center software continue to grow at the expense of ERP solutions, where Gartner reports the sales in 2009 as relatively flat.

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