More than half of IT software budgets in 2010 will go toward ongoing operations and maintenance of existing applications as opposed to implementing new software solutions, according to a recent survey by Forrester Research, Inc.
According to Forrester's Enterprise And SMB Software Survey, North America And Europe, Q4 2009, the poor economic environment created a backlog of business application software upgrade activities for firms, and many plan to address the issue this year. Forty-one percent of enterprises and 21 percent of SMBs plan to upgrade existing finance and accounting software, 48 percent of enterprises and 19 percent of SMBs plan to upgrade their customer relationship management (CRM) applications, and 52 percent of enterprises and 18 percent of SMBs plan to upgrade industry-specific software. In addition, more than 20 percent of all SMBs have concrete plans to implement CRM or information and knowledge management (I&KM) software in 2010 or later, representing the fastest-growing SMB software markets in 2010.
While cloud computing has many enterprises interested, growth of software-as-a-service (SaaS) applications is driving the market more, and infrastructure-as-a-service (IaaS) is still slow. About one-third of all enterprises have subscribed or plan to subscribe to SaaS applications in the next 12 months. However, this does not mean that one-third of all business transaction volumes are already running on SaaS applications. Rather, it reflects enterprises that use it for any application, most of which are not mission-critical today.
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