Here are some statistics to set the stage for how big and impact the SMB market can have on the ocean of SaaS opportunity:
1. 15 Million small-and-medium businesses (crossed the chasm, and the SMB market is the next consumer base.
2. In primary markets (US, Canada, UK, Australia, New Zealand), broadband penetration to these small businesses is over 90%.
3. IDC states that the SaaS market was $5.5bn market in 2005, and they predict it will grow to $11bn by 2010. That's a 20% compound annual growth rate (CAGR) versus a 6% projected growth rate for the overall software market.
4. Edge Strategies studies reveal that even a year ago (2006), 24% of SMBs have an interest in hosted applications (SaaS), and 5.4% planned on buying in the next 12 months.