New 2007 SaaS Market Estimates

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On Thursday, Gartner released its most recent worldwide SaaS market size and growth estimates. The highlights:

  • The 2007 worldwide market for SaaS is projected at $5.1 billion, a 21% increase over 2006
  • By 2011, software revenue from SaaS will reach $11.5 billion
  • From 2007-11 the growth rate of SaaS will double that of enterprise software as a whole
  • SaaS penetration ranges widely (and will continue to) across software segments, from 1 % in enterprise content management (ECM) to 75% in other segments such as e-learning and web conferencing

Further details are available in the full Gartner report “SaaS Demand Set to Outpace Enterprise Application Software Market Growth” (subscription required).

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