How Weak is VSaaS Growth?

Author: John Honovich, Published on Mar 18, 2012

The Next Big Thing - For the past few years, VSaaS has worn this mantle. Does it deserve it? Hype took off in 2008 and four years later, numerous providers emerged and market awareness soared. Now, we are at a point where real growth must be delivered. [Update: And things just got even worse - new section covering the impact of Axis Camera Companion]

Despite the hype, growth in VSaaS sales appears modest. Our VSaaS deployment statistics show limited adoption and muted integrator expectations. IMS's 2012 VSaaS report estimates 25% year over year growth in 2011 and doubling of the market in the next 3 years. Doubling might sound impressive but over a 3 year period that is a CAGR of just 26%.

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