SaaS-IDC's Top 10 Predictions

Jim Berkowitz covers the IDCs "Top 10 Predictions for 2006: Software as a Service":

The SaaS market will jump from $2.3 billion worldwide in 2003 to $8.0 billion by 2007, a 28-percent five-year CAGR.

IDC Top 10 Predictions for SaaS:

1. Large ISVs will spin off on-demand versions of products
2. Small and medium enterprises will remain a "tough nut to crack"
3. Microsoft will strengthen SaaS resolve
4. Software on-demand providers will focus on partnering
5. ini-ecosystems will emerge to extend the reach of software on demand
6. SaaS enablers will continue to aid availability of on-demand offerings
7. Merger and acquisition activity will continue
8. SaaS providers will concentrate on improving offerings and customer service
9. Hosted AM will become a stepping stone toward on-demand delivery
   SaaS will help drive a software industry transition to subscription licensing

I have covered SaaS predictions earlier, here.