Close
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Subscribe
Logo
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Subscribe
    Home Applications
    • Applications
    • Cloud
    • IT Management
    • Storage

    North America Accounts for Two-Thirds of World SaaS Sales: Gartner

    Written by

    Chris Preimesberger
    Published September 16, 2011
    Share
    Facebook
    Twitter
    Linkedin

      eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

      Cloud service and infrastructure-related sales have been documented as zooming up the marketing charts at a dizzying clip-up 21 percent in total revenue year over year-according to IT market researcher Gartner.

      Worldwide software as a service (SaaS) revenue is on track to surpass the $12 billion level in 2011, which computes to a 20.7 percent increase over 2010’s record of $10 billion, researchers said in a report released earlier this week.

      Breaking down worldwide SaaS revenue into regions, Gartner reported that North America leads by a large margin and is forecasting nearly two-thirds (63.6 percent) of all SaaS revenue by the end of the calendar year to be sold in that section of the world.

      Gartner predicts that by the end of 2015, North America’s share will level off at about 61 percent of worldwide SaaS revenue.

      Naturally, the United States represents the largest opportunity for SaaS, Gartner said, because it is the most mature of the national markets. SaaS revenue in North America is projected to total $7.7 billion in 2011, a 19 percent increase from $6.5 billion in 2010. North American SaaS revenue is forecast to reach $13 billion in 2015, Gartner said.

      The top issues encountered when deploying SaaS vary by region, the researcher indicated. Limited flexibility of customization is a top issue in the EMEA region (Europe, the Middle East and Africa); limited integration to existing systems is the primary reason in North America and the Asia-Pacific region.

      “Increasing familiarity with the model, continued oversight on IT budgets and the growth of platform as a service [PaaS] developer communities and interest in cloud computing are now driving adoption forward,” said Gartner Research Director Sharon Mertz.

      “Usage varies within markets, regions and countries, and the reasons for adopting SaaS vary by region. Total cost of ownership (TCO) is a primary driver in the [EMEA region], while ease and speed of deployment is the key reason for choosing SaaS in Asia-Pacific and North America.”

      As for other regions, Gartner projects that Western Europe’s SaaS revenue is on pace to reach $2.7 billion in 2011, up 23.3 percent from $2.2 billion in 2010. SaaS revenue is projected to reach $4.8 billion in 2015. In Eastern Europe, SaaS revenue is expected to reach $131.4 million in 2011, up 29.8 percent from 2010 revenue of $101.2 million. Eastern European SaaS revenue is forecast to total $270.1 million in 2015.

      Chris Preimesberger
      Chris Preimesberger
      https://www.eweek.com/author/cpreimesberger/
      Chris J. Preimesberger is Editor Emeritus of eWEEK. In his 16 years and more than 5,000 articles at eWEEK, he distinguished himself in reporting and analysis of the business use of new-gen IT in a variety of sectors, including cloud computing, data center systems, storage, edge systems, security and others. In February 2017 and September 2018, Chris was named among the 250 most influential business journalists in the world (https://richtopia.com/inspirational-people/top-250-business-journalists/) by Richtopia, a UK research firm that used analytics to compile the ranking. He has won several national and regional awards for his work, including a 2011 Folio Award for a profile (https://www.eweek.com/cloud/marc-benioff-trend-seer-and-business-socialist/) of Salesforce founder/CEO Marc Benioff--the only time he has entered the competition. Previously, Chris was a founding editor of both IT Manager's Journal and DevX.com and was managing editor of Software Development magazine. He has been a stringer for the Associated Press since 1983 and resides in Silicon Valley.
      Linkedin Twitter

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      MOST POPULAR ARTICLES

      Artificial Intelligence

      9 Best AI 3D Generators You Need...

      Sam Rinko - June 25, 2024 0
      AI 3D Generators are powerful tools for many different industries. Discover the best AI 3D Generators, and learn which is best for your specific use case.
      Read more
      Cloud

      RingCentral Expands Its Collaboration Platform

      Zeus Kerravala - November 22, 2023 0
      RingCentral adds AI-enabled contact center and hybrid event products to its suite of collaboration services.
      Read more
      Artificial Intelligence

      8 Best AI Data Analytics Software &...

      Aminu Abdullahi - January 18, 2024 0
      Learn the top AI data analytics software to use. Compare AI data analytics solutions & features to make the best choice for your business.
      Read more
      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Video

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2024 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.