North America To Account for 64 Percent of SaaS Revenue in 2011

Thursday, 15 September 2011, 18:25 IST
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Bangalore ; Worldwide software as a service (SaaS) revenue is on pace to reach USD 12.1 billion in 2011, a 20.7 percent increase from 2010 of USD 10 billion, according to technology researcher Gartner, Inc. The North American region is forecast to account for 63.6 percent of worldwide SaaS revenue in 2011. By the end of 2015, North America's share will represent 60.8 percent of worldwide SaaS revenue, it said. "Increasing familiarity with the model, continued oversight on IT budgets, and the growth of platform as a service (PaaS) developer communities and interest in cloud computing are now driving adoption forward," said Sharon Mertz, research director at Gartner. "Usage varies within markets, regions and countries, and the reasons for adopting SaaS vary by region. Total cost of ownership (TCO) is a primary driver in Europe, Middle East and Africa (EMEA), while ease and speed of deployment is the key reason for choosing SaaS in Asia/Pacific and North America". The top issues encountered when deploying SaaS also vary by region. Limited flexibility of customisation is a top issue in EMEA, while limited integration to existing systems is the primary reason in North America and Asia/Pacific. North America, specifically the US,represents the largest opportunity for SaaS, and it is the most mature of the regional markets. SaaS revenue in North America is projected to total USD 7.7 billion in 2011, an 18.7 percent increase from 2010 revenue of USD 6.5 billion. North American SaaS revenue is forecast to reach USD 12.9 billion in 2015. SaaS revenue in Asia/Pacific is forecast to total USD 768.3 million in 2011, a 27.7 percent increase from 2010 revenue of USD 601.8 million.
Source: PTI