This IDC study examines the market for subscription billing and payment software that is growing at a rapid pace (with a CAGR of 17.2%; it's expected to reach $2.1 billion by 2019), driven in part by demand for public cloud offerings. Demand for public cloud (CAGR of 37.2%) is clearly outpacing that of on-premises/other software (CAGR of 2.9%), but the on-premises market remains significant as large enterprises are choosing to maintain existing software rather than disrupt core applications such as subscription billing and payments that are continuing to work smoothly.
"The shift from product-centric commerce to experience- and service-centric commerce is driving demand for subscription billing and payment solutions," said Christine Dover, research vice president for Enterprise Applications and Digital Commerce with IDC. "Many companies, wondering where the next big thing is coming from and who don't want to sit back and watch someone else "Uberize" their business, are looking to subscription-based models to transform. And it's not just software and digital media companies, we're seeing farm equipment, cargo shipping, financial services, and more all moving to subscriptions."