IDC Market Research Projections for #SaaS

In a webinar today produced by the market research company IDC, they released some projections on the adoption of Software as a Service (SaaS) business model for the next few years. Here are their results:

• SaaS Revenue is on a Tear (26% CAGR, 2010-1014)
• SaaS revenue to grow 5x faster than "all applications" spending; 6x faster than "all software"
• Influx of net new "products" delivered as SaaS (IDC estimate; 82% in 2012)
• <21% of brand new companies will go to market w/packaged (CD) product in 2010
• <35% of new products from established ISVs will be CDs in 2010
• Perpetual license revenue declines, for good (-$7 billion in 2009)
• ~37% of 2009 subscription revenue derives from MT SaaS: 43% in 2013
• On-premise, core ERP struggles (<5% CAGR overall, <3% CAGR for >5000 employee firms)
• Project-based work most vulnerable to cuts
• ERP upgrades are delayed, canceled
• SaaS market includes SW leaders (SAP, Oracle, IBM, HP), as well as SaaS pure-plays
• 56% of revenue is from pureplays; 18% from firms with >70% of revenue from SaaS; remainder from large firms with SaaS BUs

The source for these data come from an IDC report entitled: IDC #226328 Worldwide Software as a Service 2010-2014 Forecast: Software Will Never Be the Same