The recession has not dampened growth in the software as a service (SaaS) market, which has seen a 17.7% increase in global revenues this year.
According to figures from Gartner, the value of the SaaS market will reach $7.5bn this year. Gartner says it will continue to grow through to 2013, by which time the market will have almost doubled to $14bn.
The majority of the revenue continues to come from content, collaboration and communications tools, with CRM close behind.
Sharon Mertz, research director at Gartner, said increasing numbers of vendors were launching SaaS offerings.
Sharon Mertz added that there were more vertical-specific applications driving growth: "Adoption of the on-demand deployment model has continued to grow as on-demand vendors have extended their services through alliances, partner offerings, and more recently, by offering and promoting user application development through platform as a service capabilities," Mertz said.
Mertz said examples such as salesforce.com had helped to drive the acceptance of hosted CRM, indicating demand for specialist products.