Software-as-a-Service Spending to Increase 112% by 2014

SCOTTSDALE, AZ - Businesses of all types and sizes are increasingly using cloud platforms for information technology, and they now have a variety of service options to select from. A new In-Stat report forecasts that public cloud software-as-a-service (SaaS) spending by U.S. businesses will increase by 112 percent between 2010 and 2014, with small office-home office businesses leading the way.

“Spending is expected to grow significantly across all service options of cloud computing, including IaaS and PaaS [infrastructure as a service and platform as a service],” says Greg Potter, a research analyst at In-Stat. “But since SaaS is the largest segment volumewise, its growth will be the most dramatic. Within SaaS, the professional services and health care verticals will see the largest growth in spending, each growing over 30 percent during the forecast period.” According to In-Stat, IaaS spending will approach $4 billion in 2014 and PaaS spending will increase 113 percent to roughly $460 million in 2014.