SaaS sales pegged to rise 18% in 2012

Michael Carroll
telecomasia.net
Global software-as-a-service (SaaS) sales are tipped to grow almost 18% year-on-year in 2012, and will continue to increase through 2015.
 
Research firm Gartner predicts SaaS revenues will hit $14.5 billion this year, fueled by demand from horizontal applications with common processes, virtual workforces, and Web 2.0 activities.
 
North America is tipped to be the largest market in 2012, generating $9.1 billion in sales compared to $7.8 billion in 2011. Western Europe follows, with Gartner predicting 2012 revenue of $3.2 billion compared to $2.7 billion in 2011, with Eastern Europe forecast to contribute $169.4 million in 2012 compared to $135.5 million in 2011.
 
The research firm notes SaaS sales in Western Europe are currently growing rapidly, due to growing penetration of North American vendors and an increase in local suppliers. Sales in Eastern Europe, Middle East and Africa are tipped as a medium-term play, due to infrastructure challenges.
 
Asia Pacific will generate $934.1 million worth of sales in 2012, and Latin America $419.7 million, the research firm predicts.
 
Globally, the SaaS market is set for steady growth through 2015, when Gartner forecasts sales will hit $22.1 billion in total.

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