This IDC study describes the rigorous classification scheme, or taxonomy, used by IDC to research and analyze software as a service (SaaS) trends and opportunities. In its entirety, this taxonomy presents the following at an aggregate level:

• Definitions and classifications by SaaS activities
• The multiple dimensions of SaaS
• The developing SaaS ecosystem

"To sustain the adoption and revenue momentum occurring with SaaS, particularly software on demand, SaaS providers will need to look toward channel and alliance relationships to expand the distribution networks of SaaS offerings," said Erin TenWolde, research manager, Software as a Service research at IDC. "This includes establishing relationships to integrate new functionality, penetrate verticals, and expand into regions in order for the delivery model to proliferate even further."