Today morning I wrote a post that pointed to a Gartner report that said SaaS revenues from enterprise application market has increased 14.1 percent in 2010 compared to 2009. Now the market research firm IDC has come out with a studythat forecasts the market to reach $40.5 billion by 2014, representing a compound annual growth rate of 25.3%.

The other key findings include

• By 2012, nearly 85% of net-new software firms coming to market will be built around SaaS service composition and delivery; by 2014, about 65% of new products from established ISVs will be delivered as SaaS services
• SaaS-derived revenue will account for nearly 26% of net new growth in the software market in 2014.
• Traditional packaged software and perpetual license revenue are in decline and IDC predicts that a software industry shift toward subscription models will result in a nearly $7 billion decline in worldwide license revenue in 2010. As a result, a permanent change in software licensing regime will occur.
• SaaS segment mix will shift toward infrastructure and application development and deployment/PaaS, and away from U.S. dominance. IDC expects that by 2014, applications will account for just over half of market revenue. This shift will happen in part as a result of increasing IT cloud spending by enterprise IT groups and commercial cloud services providers (cloud SPs) relative to end-user spending