Strong growth in SaaS market forecast

News Article - 10 April 2008
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The European market for software-as-a-service (SaaS) is predicted to witness strong growth over the next couple of years, a new report claims.

A study by analyst IDC reveals that one third of organisations in western Europe expect to adopt some form of SaaS to replace current enterprise planning systems within 24 months.

The research forecasts "positive and ambitious" spending indicators for Europe on SaaS technology, with companies planning to replace customer relationship management (CRM) and supply chain management systems to enhance their business health, according to IT Pro.

Bo Lykkegard, research director of the IDC European Enterprise Applications and Services programme, explained: "European organisations seek to leverage the SaaS delivery model to reduce risk, complexity, and upfront costs of new IT initiatives."

A technology firm recently predicted that the credit crunch and current climate of global uncertainty could provide a boost for SaaS markets because of the low upfront costs and reduced risks associated with the software.

Management reporting and online accounting software can help companies to boost productivity and control costs.

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