According to IHS iSuppli, revenue from mobile app stores is expected to reach $3.8 billion by the end of the year and a staggering $8.3 billion by 2014. Just comparing 2010 to 2011, iSuppli is predicting a 77.7% growth. The sheer numbers speak volumes without further explanation. But, that wouldn’t make for an interesting blog entry.

iSuppli took a slightly different approach and analysis, including in-app purchases in its estimates, which they say will be a key driver for revenue growth until 2014. This sentiment makes me think about the explosion of Software-as-a-Service (SaaS), which is witnessing broader acceptance and adoption in the enterprise technology industry. This model offers several benefits, including a pay-as-you-go and/or pay-as-you-need model for financially strapped organizations that don’t want to pay for services they don’t need. Also, these solutions are delivered via the cloud, enabling easy and quick installation, and software updates.

Now, to draw the connection between SaaS and in-app purchases. In-app purchases offer customers the option to try out a slimmer version of an app with less functionality to ‘test’ its utility and value, and determine if a heavier version is needed. Also, they provide room for developers to continually innovate and bring new services to its applications, which may be outside the current set of functionality. As noted, both of these scenarios build on the flexibility offered via the cloud and wireless services that we feel is changing the app landscape, and offering new revenue opportunities for developers. Not only can developers look to leverage this to build their businesses, but consumers can benefit from innovation and evolving solutions with new and exciting functionality. Google also recognized this movement to in-app purchases and announced a new update to support it. Google recently upgraded its Android analytics to its SDK to monitor in-app billing with the goal of encouraging developers to implement it in their solutions. And, Mashable posted an interesting article on tips to boost in-app purchases for Android developers.

Let us know how much you’ve spent on apps this year and how much of these were through in-app purchases.