BYOD, mobile cloud to spur rapid growth in mobile SaaS market
The BYOD trend and increasing use of cloud mobile services will spur rapid growth in the use of mobile software-as-a-service (SaaS) products by small and medium-sized businesses (SMBs), predicts market research firm Strategy Analytics.
The market, which includes firms with up to 250 employees, is forecast to increase at a 24.1 percent compound annual growth rate (CAGR), reaching $19.8 billion by 2017, up from $6.7 billion in 2012.
In addition, the corporate market, which includes firms with more than 250 employees, is also forecast to see strong growth in mobile SaaS revenues, which are expected to more than double over the next five years, according to Strategy Analytics.
The corporate mobile SaaS market is predicted to increase at a 19 percent CAGR, reaching $4.7 billion by 2017, up from $2 billion last year.
The most popular mobile SaaS applications in both markets are customer relationship management, human resources, business intelligence (BI), email and industry-specific applications.
"Most SaaS applications available today support mobile functionality, thus eliminating IT costs to acquire and manage mobile enterprise platforms and applications. This is a particularly attractive proposition for small and mid-sized businesses," says Gina Luk, senior analyst for mobile workforce strategies at Strategy Analytics.
"Mobile CRM, data growth and the need to manage large amounts of data, such as transactions records and multimedia, are driving the uptake of corporate mobile SaaS," Luk adds.
Andrew Brown, executive director of enterprise research at Strategy Analytics, observes: "SaaS continues to find traction and appeal in the SMB sector as cloud services lower the barrier to entry for cash-conscious organizations, allowing them to realize savings by outsourcing services and shifting funds from capex to opex."
Regarding the corporate market, Brown notes: "Large enterprises, for the most part, have still been reluctant to adopt cloud BI and analytics solutions, especially on mobile devices, as these solutions continue to lack the best-of-breed capabilities found in premises-based solutions. However, as enterprises tackle new challenges around capturing, storing, and analyzing 'big data,' they are increasingly going to look at mobile cloud-based solutions."