SaaS market to grow to $40.5B by 2010 says IDC

In June IDC released a new market analysis titled Worldwide Software as a Service 2010-2014 Forecast: Software Will Never Be the Same.

It includes very interesting information. For example it says that SaaS represented just over 73% of IT public cloud services revenue in 2009, reaching $13.1B.

It also includes remarkable predicitions:

  • In 2010 perpetual annual license revenuw will decline by nearly $7B as the industry shifts to subscription models
  • By 2012 nearly 85% of net-new software firms will be built around the SaaS model
  • By 2014 revenue will grow up to $40.5B, at a compound annual growth rate (CAGR) of 25.3%
  • By 2014 about 65% of new product from established ISVs will be delivered through a SaaS model
  • By 2014 SaaS will account for just over half of market revenue. The rest will be divided among IaaS and PaaS