SaaS Market to Witness a Booming Growth, Reports Siemer
14 Aug. 2013 Enterprise Tech News
Every research paper, including the report submitted by Siemer, indicates that SaaS is yet to stay in the market probably for at least another three years.
Siemer, in its report, indicates that ‘smart computing’ and the need for enterprises to push collaboration outside the firewall is what pushes SaaS. Smart computing here includes apps providing direct access to the data that is used in the decision making process of enterprise. This is in sync with the SaaS services currently provided by vendors. Mobile workers are also provided with direct remote access to work enabling data.
According to the report, SaaS market will witness a 16.8% growth between the years 2012 to 2015. In other words, the SaaS market is expected to grow from US $16.7 billion in 2013 to US $21.3 billion by the year 2015. (The data on global market revenue of SaaS market for the year 2011-2012 is represented in a graph below.) There will, however, be regional differences. North America is estimated to witness the highest growth rate, followed by Europe, Asia and Latin America.
Image Source: CMSWIRE
The shift of business dealings over to mobile devices is another factor that is pushing SaaS forward. Aiding this factor is the development of several mobile applications and the BYOD strategy that is adopted by the companies. Siemer predicts that this year alone, Smart Mobile Device (SMD) sales will grow by 20%, generate 20% of IT sales and drive 57% of the IT market growth.
Among the SaaS applications used, enterprises are in particular looking for applications related to CRM, ERP and HRM. CRM SaaS is the most implemented SaaS application till now, with communications, media and IT services being the major buyers. The ERP SaaS market is led by SAP and Oracle, commanding 25% and 13% of the market respectively. HRM SaaS adoption is seen the highest in US markets, with SaaS deployments at as high as 92%, followed by European market at 61%.
The report suggests that organizations that use ERP with an HRM SaaS based talent management approach have been found to outperform those using different solutions by nearly 48%.