SaaS Rapidly Becoming Mainstream

The “Enterprise Software Customer Survey 2008″ from McKinsey & Company reveals just how rapidly the business software landscape is changing.

The survey points to a accelerating adoption of subscription-based and on-demand solutions. This is clearly being driven by Small and Medium Businesses (SMBs) which are collectively spending 26% of their software budgets on web applications. However, many larger enterprises are also starting to jump onto the SaaS bandwagon.

McKinsey expects this shift to web apps to fundamentally reshape the software industry, predicting the “rise of a new generation of platforms to develop, integrate, deploy and host these applications.”

Read the full McKinsey report here.