SaaS sees customers subscribing for services they access via their web browsers instead of installing software on their computers.
Examples include Microsoft's latest version of its traditional software application suite, branded Microsoft Office 365.
The software runs on the developer's internet servers rather than each client's PC, and maintenance can be done on a central version of the software instead of customers needing to download and install upgrades.
Gartner said many companies are providing software as a service as part of their broader cloud computing packages.
Gartner defines total software revenue as revenue from new licences, subscriptions, and software maintenance and technical support services that include licence sales to upgrade an existing licence to a new version, telephone support and on-site remedial support.
SaaS-based delivery will experience healthy growth through 2015, when worldwide revenue is projected to reach $22,1bn.
North America represents the largest opportunity for SaaS, and it is the most mature of the regional markets.
SaaS software revenue is forecast to total $9,1bn this year, up from $7,8bn last year.
Research director at Gartner, Sharon Mertz, said in Eastern Europe, the Middle East and Africa, which were small and emerging markets, the opportunity for SaaS was more in the medium- to long-term due to continuing infrastructure challenges for vendors.
Network instability was the issue most frequently encountered, whereas longer than expected deployments are the top issue in Asia-Pacific, Ms Mertz said.
Source: Business Day
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