This IDC Market Analysis Perspective presents IDC's view of the worldwide SaaS and cloud software market, with views into emerging industry trends, buyer needs, a competitive assessment of key players, and long-term market opportunities. It also contains a view of performance by vendor in 2014 and forecast market performance through 2019.
The cloud software market reached $48.8 billion in revenue in 2014, representing a 24.4% YoY growth rate. IDC expects cloud software will grow to surpass $112.8 billion by 2019 at a compound annual growth rate (CAGR) of 18.3%. SaaS delivery will significantly outpace traditional software product delivery, growing nearly five times faster than the traditional software market and becoming a significant growth driver to all functional software markets. By 2019, the cloud software model will account for $1 of every $4.59 spent on software.
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.
Cloud system software, Collaborative applications, Content management, Engineering applications, Hybrid clouds, Infrastructure as a service, Operations and manufacturing applications, Platform as a service, Private cloud services, Public cloud services, Software, Software as a service, Supply chain management applications