SaaS is the service enablement of all three primary software markets: applications, application development and deployment (AD&D), and system infrastructure software (SIS), and virtually all software vendors are at various stages in a seminal transition in how they build, sell, and deliver their products as services. The shift is driven by the insight that SaaS delivery will significantly outpace traditional software product delivery, growing nearly five times faster than the software market as a whole and becoming the significant growth driver to all software markets. By 2015, nearly $1 of every $6 spent on packaged software, and $1 of every $5 spent on applications, will be consumed via the SaaS model. By 2012, about 83% of all net-new software firms coming to market will be operationalized around creating, testing, selling, and provisioning a service versus a packaged product (CD). And by 2015, about 24% of all new business software purchases will be of service-enabled software, and SaaS delivery will constitute about 13.1% of worldwide software spending across all primary markets and 14.4% of applications spending. This MAP Presentation lays out insights from IDC's SaaS & Cloud Services Research practice, including market trends, events to watch for in 2012, and essential guidance for clients.