SaaS is the service enablement of all three primary software markets: applicatio ns, application development and deployment (AD&D

), and system infrastructure sof tware (SIS), and virtually all software vendors are at various stages in a semin al transition in how they build, sell, and deliver their products as services. T he shift is driven by the insight that SaaS delivery will significantly outpace traditional software product delivery, growing nearly five times faster than the software market as a whole and becoming the significant growth driver to all so ftware markets. By 2015, nearly $1 of every $6 spent on packaged software, and $ 1 of every $5 spent on applications, will be consumed via the SaaS model. By 201 2, about 83% of all net-new software firms coming to market will be operationali zed around creating, testing, selling, and provisioning a service versus a packa ged product (CD). And by 2015, about 24% of all new business software purchases will be of service-enabled software, and SaaS delivery will constitute about 13. 1% of worldwide software spending across all primary markets and 14.4% of applic ations spending. This MAP Presentation lays out insights from IDC's SaaS & Cloud Services Research practice, including market trends, events to watch for in 201 2, and essential guidance for clients.

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