Industry news

SaaS is a 'global growth story'

Software as a Service (SaaS) is rapidly being adopted - especially in the customer relationship management (CRM) sector - due to its cost-effective delivery method, according to industry research.

Tier1 Research (T1R) predicts that the on-demand CRM market will grow at an annual rate of 41 per cent through to 2010.

It suggested that growth from European companies will be driven by demand for end-point software applications.

Wesley Kennedy, a senior analyst at T1R and the report's author, said the market was so competitive and existing providers have had such a long time to gain a head-start that it was unlikely that a new provider could enter the market.

"The global growth story for the on-demand CRM market is clearly an exciting one," he added.

"While the rising tide will lift all boats, it is evident that some boats will rise higher than others. Those companies that are levered to the fastest-growing sections of the market will clearly be the greatest beneficiaries."

Meanwhile, Gartner revealed it predicts the majority of all SaaS providers will incorporate open source technology in two years time.