According to a recent IDC study, the acceptance of software as a service (SaaS) delivery models, which includes software on demand and hosted application management (hosted AM), continued gathering momentum and customer mindshare in 2005 which is expected to further increase in 2006. IDC believes that SaaS providers will pay particular attention to developing and increasing partnerships in order to expand revenue streams and customer adoption in the upcoming year.

IDC's top ten predictions for SaaS in 2006 are:

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