8% of CRM software in 2005 was sold as a service

Software as a service (SaaS) represented approximately 5% of business software revenue in 2005 and, by 2011, 25% of new business software will be delivered as SaaS, according to Gartner. SaaS accounted for approximately 8% of CRM total software revenue in 2005 (Gartner estimates 2006 SaaS revenue to reach 12% of total CRM software revenue) and integration as a service had 10% adoption in its market. But, other markets, such as the ERP and supply chain management segments, had less than 4% adoption.