Software as a Service business

Although software spending is expected to increase just 5 percent through 2013, the software-as-a-service niche is forecast to expand by nearly 20 percent annually over the same period, as companies continue to see the benefits of on-demand, flexible applications, according to Gartner, a market-research firm. The industry is expected to produce $8 billion in sales by the end of this year and $16 billion by the end of 2013. The office suites categories will lead the pack this year, increasing 376 percent to $512 million.