Cloud Computing Services Rocket While Traditional Software Slumps

Traditional software sales are starting to slump as cloud-based services and SAAS (Software As A Service) are enjoying unprecedented pickup with revenue set to grow at six times faster than all software and cloud services are expected to show compound annual growth (CAGR) of around 26 percent up to 2014.

This is the feedback from research house IDC from its report, “Worldwide Software as a Service 2010-2014 Forecast: Software Will Never Be the Same”.

The IDC survey found that most SaaS is being delivered to US organisations – they currently have 71 percent of the market – but IDC predicts that by 2014, it will become more global.

Despite this move towards SaaS, IDC found that 26 percent of companies were still resistant to the idea, saying that had no plans at all for a move to cloud computing. This rose to about 40 percent for companies with fewer than 100 employees.

This latter point surprised me as I was under the impression that webside services gave smaller companies an edge as they were quicker to make decisions leaving their larger rivals to lumber like dinosaurs behind them!

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Kevin Tea is a journalist and marketing communications professional who has worked for some of the leading blue chip companies in the UK and Europe. In the 1990s he became interested in how emerging Internet-based technologies could change the way that people worked and became an administrator on the Telework Europa Forum on CompuServe. With other colleagues he took part in a four year European Commission sponsored project to look at the way that the Internet could benefit remote communities. His blog is a resource for SMEs who want to use cloud computing and Web 2.0 technologies.