Adaptive Planning and Intacct recently underwrote a new Sand Hill Group survey which found that the majority of the more than 100 software company CEO’s and CFO’s interviewed believe that cloud computing and Software-as-a-Service (SaaS) will drive the largest amount of spending in the software industry over the next 12 months. The report also found that the majority of respondents expect their company’s business will grow by at least 20 percent in 2011 and that hiring will increase significantly. In addition, nearly two-thirds of the respondents expect their company to grow by at least 20 percent, including more than one quarter of the respondents who expect their growth rate to top 50 percent this year.
Other key findings of the survey include:
- Cloud Computing and SaaS are Key Growth Drivers – The survey reveals that the resounding majority of respondents feel cloud computing and SaaS/on-demand will be the two most frequent types of software projects driving business spending over the next 12 months. More than 50 percent of the respondents stated the biggest influence driving software spending would be the need to increase efficiencies and reduce costs.
- Hiring Trends Perking Up – Approximately 90 percent of the companies surveyed expect their headcount to increase in 2011, with more than half of those companies expecting their headcount to increase “significantly” this year.
- Industry Growth Outlook Remains Strong – The survey revealed that more than 90 percent of the software executives responding have a positive opinion regarding the industry outlook. In addition, nearly three-quarters of the executives expect the software industry will perform better than in 2010.
- The Cloud Model Dominates – The survey indicates software vendors have increased their use of cloud deployment options over the past year and decreased their use of on-premises options. In addition, a clear majority (72 percent) of the surveyed executives stated that multi-tenant SaaS solutions via a subscription license is the type of offering that will be most desirable for new customers during the next 12 months.