IDC Report: A third of all software to be delivered via the cloud

By Chenka Nkhata
In a new report, IDC (a market intelligence company focused on ICT research) is predicting that over the next 3 to for 4 years a third (34%) of all business software will be consumed via the cloud or in a software as a service model.

Interestingly, IDC is also predicting that by 2012, 85% of net-new software firms entering the software market will be built around software as a service models and 65% of new products from already established vendors will be delivered via SaaS models as well.

These predictions alone indicate that a major shift in traditional software licensing models is afoot and that cloud services are becoming part of enterprise or corporate IT strategy.

Robert Mahowald, vice president of SaaS and Cloud Services Research at IDC, further adds that, “Enterprise IT plans are rapidly shifting to accommodate the growing choices for sourcing most or all IT software functions, from business applications to software development and testing, to service and desktop management, as SaaS services become available from established vendors and new models for accessing functionality in the cloud creates lower-cost options and more tailored models for consuming IT services."

Perhaps the keywords in that statement are the words “tailored models”. As cloud services become more and more flexible to specific enterprise requirements, they become more and more popular.
For more details on this report visit this link:

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