According to IDC SaaS will grow by more than 40 percent in the current year.
Hardware and software will continue its commodization spiral which will lead to service commodization. The idea is not becoming the low price leader but to be perceived as value for money moving forward in this economy. Today companies are looking closely are the values of their internal staff, aligning current costs with business goals, and evaluating risk ownership. More organizations are willing to evaluate SaaS as an alternative to reduce overall cost via opex versus the traditional capex. As quoted by IDC "right-sized, zero-CAPEX alternatives to on-premise applications."
According to IDC, by the end of 2009, 76% of US organizations will use at least one SaaS-delivered application for business use revised from previous SaaS growth projection which has 73% in 2010 (see below).
All the data points to our partner program approach to SaaS enablement allowing partners to reduce barrier to offer more products, insulate from ongoing changes in IT and position for rapid growth during this economy.