The company also said it faced increased costs in transitioning to a cloud business and in integrating businesses it has acquired. CDC reported that cloud bookings grew from nearly 13 percent of application sales in the fourth quarter of 2009 to 31 percent in the most recently ended quarter of 2010. It expects the total to approach 50 percent this year as during 2011 it has introduced Ross in the Cloud and e-M-Power, an ERP product for China. It reported $10.8 million in SaaS revenue for 2010, a substantial increase from $616,000 the prior year. Results were also held down by a decline in professional services revenue. That income category fell to $62.1 million, a drop of 6.8 percent from $66.7 million for the compared years. On the expense side, there were $40.7 million in sales and marketing expenses, a 25-percent increase, and $27.9 million for R&D, a 54.8-percent rise.