IDC: Vendors will increasingly employ SaaS model

During the economic downturn, many enterprises turned to Software-as-a-Service (SaaS) content management solutions as a way to avoid the expenses that often come along with in-house CMS implementation. As IT budgets loosen a bit from their air-tight state just a few months ago, SaaS has emerged as a strategy with staying power.

"The SaaS model has become mainstream, and is quickly coming to dominate the planning--from R&D, to sales quotas, to partnering, channels and distribution--of all software and services vendors," said Robert Mahowald, vice president of IDC's SaaS and Cloud Services arm.

By 2012, almost 85 percent of new IT vendors will be employing the SaaS model, according to a recent study by analyst firm IDC. The report also found that by 2012, some 65 percent of new offerings from established software vendors will be sold as a service.

Similarly, IDC expects SaaS vendor revenue to more than triple in the next four years. While IT vendors offering "traditional on-premises applications will drop roughly $7 billion this year and are likely in permanent decline, since SaaS is generally sold via subscription," reported IDG News Service.

For more:
- see this IDG News Service article
- see this IDC press release

Related Articles:
Industry analysts peer into their crystal ball
SpringCM updates SaaS ECM platform
Gartner and IDC predict bright future for SaaS
When Times Get Tough, Get SaaS(y)