Friday, October 22, 2010

Small Business "Software as a Service" Adoption Will Grow at 25% Through 2014

Small and medium business spending on software-as-a-service (SaaS) will increase exponentially over the next five years, eclipsing growth in investments in on-premise software by a significant margin, AMI-Partners predicts.

AMI forecasts a 25 percent compound annual growth rate for hosted business application services spending through 2014.

On-premises software spending will grow at about five percent. But change will be slower for applications such as enterprise resource planning, supply chain management, procurement, finance, and core human resources applications which have higher switching costs.
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