Boom in software-as-a-service to generate $10.7-B revenues worldwide

MANILA, Philippines - Worldwide revenues of software-as-a-service (SaaS) will likely reach $10.7 billion this year as the market is projected for stronger growth likely due to the “significant industry buzz” on SaaS and other off-premises models shifting to cloud computing, according to analyst firm Gartner.

Although $10.7 billion is huge, information technology (IT) and business process outsourcing (BPO) experts think it is still at its early beginnings. “The projected growth may be big to many but we think we’re still at the early stages of the SaaS industry. When enterprises can clearly distinguish and learn the ability and strength of SaaS, then, the estimated growth might just increase incredibly,” inContact country manager Junie Pama said.

inContact, SaaS provider to local call centers, said there has been an increase in the number of companies acquiring SaaS in the country because of its many advantages. In cloud-based call center solutions alone, like the inContact platform, the advantages include speedy setup, automation of mundane service processes, reduction of IT costs, elimination of technical hassles, and integration of multiple in-house and commercial technologies.

“Our solutions make it possible to do business the way it works for you. With SaaS, it makes it easier for you to work at home, manage global sites, or run multi-site locations, something that seemed impossible to do before,” Pama said.

However, before considering SaaS adoption, companies should first dedicate time and effort in learning more about the technology.

“Know your objectives and goals first before considering SaaS. Also, make sure your network, systems, and providers have the necessary quality and features that match your needs,” Pama explained.

According to Gartner analysts, only 75 percent of the current SaaS delivery revenue could be considered cloud services. As the SaaS model matures and converges with cloud services models, the breakdown could exceed 90 percent by 2014, the analysts said.

Sharon Mertz, research director at Gartner, defines SaaS as a software owned, delivered and managed remotely by one or more providers. The application is delivered as a single set of common code and data definitions and contracted customers ‘consume’ the application at anytime in a ‘one-to-many model.’