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Strong Demand Across all Business Sizes and Verticals


SCOTTSDALE, Ariz., June 2008 - Demand for software as a service (SaaS) business applications in the US business market is growing at a steady pace across all sizes of business and vertical markets, reports In-Stat . Steadily increasing US hosted application revenues, from $8 billion in 2008 to $16 billion by 2012, are expected, the high-tech market research firm says.

“The main benefits of hosted applications that resonate across vertical markets are scalability, Total Cost of Ownership (TCO), and remote accessibility,” says Jeff Jernigan, In-Stat analyst. “Also, the need for IT support for business applications is greatly minimized if not eliminated due to the centralized, vendor-supported management of the application.”

Recent research by In-Stat found the following:

The healthcare market is among the most satisfied current hosted application user segments.

The education market should be an important target market for providers, as it is a market full of thought-influencers.

Despite strong current adoption, hosted Web collaboration application providers need to do more to reach new customers.
Recent In-Stat research, Demand for SaaS Business Applications Segmented by US Vertical Market (#IN0804218VMA), covers the US market for SaaS. It explores the drivers and inhibitors for adoption, as well as whom respondents would turn to for more information about these applications. Four major vertical markets are covered:

• Education

• Government

• Healthcare

• Professional Services

Survey data from these four vertical markets is presented and compared to results from respondents across the entire US market. A forecast of SaaS revenue in the US market through 2012 is provided.

For more information on this research or to purchase it online, please visit: or contact a sales representative:

The price is $3,495 (US).

This research is part of In-Stat’s Vertical Market Analytics service, which provides clients analysis of demand for wireless, wireline, voice and data, and managed services by vertical market. This service is designed to provide clients with insight to:

• Business issues, opportunities and challenges driving network and wireless investments

• Adoption of network technologies

• Sub segment comparisons (for example the Government summary provides analysis of state, local and federal spending)


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