This IDC Market Analysis Perspective Presentation discusses the worldwide market for SaaS and cloud services. 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, which comprises the applications and system infrastructure software (SIS) markets, will significantly outpace traditional software product delivery, continuing to grow at nearly five times faster than the software market as a whole and becoming the significant growth driver to all software markets. Cloud services is the service enablement of all software markets broken into two groups: cloud software (applications, application development and deployment [AD&D], and SIS) and cloud infrastructure (server, basic storage, network, and client). By 2016, 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 2013, about 82% 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). By 2016, about 25% of all new business software purchases will be of service-enabled software, and SaaS delivery will constitute about 14.9% of worldwide software spending across all primary markets and 18% of applications spending. This MAP Presentation lays out insights from IDC's SaaS and Cloud Services Research practice, including market trends, events to watch for in 2013, and essential guidance for clients.
Application development and deployment, Applications, Cloud services, Hybrid clouds, Private cloud services, Public cloud services, Software, Software as a service, Storage and the cloud, System infrastructure software