Countering the growth projections is the economic recession which positions the market for -1% revenue growth in 2010 rebounding in 2001.
Figure 1: Software-as-a-Service Revenue Growth & Forecast (2009 -- 2014)
Revenue $ Million
Growth %
2010
145,723.6
-1.0
2011
151,552.5
4.0
2012
157,766.1
4.1
2013
164,234.6
4.1
2014
170,968.2
4.1
Implications of SaaS Adoption & Growth for Business & Organizational Models
As the economics of information technologies is being reordered due to the exceptionally fast growth of SaaS-based development platforms and applications the implications for businesses and organizations is strategic. Most fundamentally is the availability of enterprise-level applications which can be paid for using Operating Expense (OPEX) accounting principles, no longer requiring Capital Equipment expenditures, sometimes called CAPEX. This has taken the power of information technologies and applications out of the hands of the CIO and given it to the line-of-business managers and leaders. The dynamics of how CRM has shifted from the CIO to the Sales Vice Presidents and Chief Marketing Officers (Tehrani, 2006) is a case in point. Secondarily the multi-tenancy of the platform (Tehrani, 2006) and the scalability of the Ajax application language is also fundamentally reordering application development as well (Serrano, Aroztegi, 2007). As a result of the combining of all these factors, businesses and organizations are capable of creating knowledge networks. This has served to significantly reduce the lag time for knowledge transfers globally and also created entirely new Ajax-based applications that can manage and analyze exceptionally large and complex data sets (Serrano, Aroztegi, 2007). The net effect of all...
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