This IDC study presents IDC's view of worldwide SaaS and cloud software performance, by vendor in 2011, and anticipated performance through 2016. The cloud software market reached $22.9 billion in revenue in 2011, a 30.9% YoY growth rate. IDC expects cloud software will grow to $67.3 billion by 2016 at a compound annual growth rate (CAGR) of 24%. 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 functional software markets. By 2016, the cloud software model will account for $1 of every $5 spent on software.
According to Robert P. Mahowald, research vice president of IDC's SaaS and Cloud Services research practice, "Figuring out how to find and capitalize on the enormous cloud services transformation is the number 1 strategic goal of all major IT product vendors. SaaS, and broader public cloud opportunities, represents both a tremendous challenge to meet change head-on and a huge opportunity to realign with partners, create new capabilities, move into new markets, and define new leaders."
Application management, Applications, Cloud system software, Collaborative applications, Content applications, Customer relationship management applications, Engineering applications, Enterprise resource management applications, Infrastructure and platform clouds, Networks, Private cloud services, Public cloud services, Software as a service, Supply chain management applications, System infrastructure software