The market for Software-as-a-Service (SaaS) is experiencing strong momentum among US small and medium enterprises. Lured by attractive pricing and annuity-based payment models, companies are increasingly shifting expenditures from legacy applications to online hosted alternatives. Likewise, relatively under-developed product categories are getting a lift from SaaS as more firms find the business model accessible. SaaS, as well as the broader outsourced managed services market, are also benefiting from the impact of the economic slowdown. As firms apply a keener eye to stretching their working capital, SaaS and managed services are proving cost effective options to traditional application and IT management models. In this report, we provide perspective on enterprise demand trends for SaaS and managed services and potential plays around key vertical and horizontal segments.

Key points of coverage include:

1. Five year spending projections on SaaS and managed services (2009 - 2014)
2. Demand trends/growth drivers
3. Recent adoption by application category
4. Growth themes/alternative positioning strategies
5. Prevailing routes to market through third-party channels

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