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Putting SaaS revenue in perspective

Software as a service enterprise revenue is expected to hit $7.5 billion, up 17.7 percent from 2008, according to a report this week from Gartner. Now let's put that sum in context relative to enterprise software giants.
Written by Larry Dignan, Contributor

Software as a service enterprise revenue is expected to hit $7.5 billion, up 17.7 percent from 2008, according to a report this week from Gartner. That's a pittance compared to the current enterprise software giants.

Here's the breakdown:

Now $7.5 billion is a decent chunk of change, but here's the reality:

  • $7.5 billion in SaaS revenue is less than the sales garnered by Microsoft's entertainment and devices division for the year ended June 30 ($7.75 billion).
  • $7.5 billion is less than a third of Oracle's annual revenue of $23.2 billion. And Oracle collected $11.7 billion in fiscal 2009 license updates and product support revenue.
  • For the nine months ended Sept. 30, SAP reported total revenue of 7.48 billion euro ($11.2 billion at current exchange rates).

The good news is that Gartner projects SaaS revenue to top $14 billion in 2013. That's big news right? Well not really.

  • Microsoft pulled in $14.7 billion in client revenue for the year ending June 30.
  • Microsoft's business division (Office) had fiscal 2009 revenue of $18.9 billion.
  • In 2008, IBM had software revenue of $22.08 billion.

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