Some Statistics before handpicks
According to a BCC study done in 2018, “the global software as a service (SaaS) market for business applications should total $94.9 billion by 2022 from $44.4 billion in 2017 at a compound annual growth rate (CAGR) of 16.4% from 2017 to 2022”.
Interestingly with no surprise, the recent study done by Gartner said, “Software as a service (SaaS) remains the largest market segment and is forecast to grow to $104.7 billion in 2020”.
The forecast ratio keeps increasing as the SaaS businesses are witnessing phenomenal growth amidst the pandemic. Or due to pandemic?! Maybe, yes.
The SaaS market is growing and we can definitely be sure of the fact that it is the future. Advent of cloud computing is treading the increasing demand of the sector and Gartner has estimated that the market will attain around 140 billion dollars by 2022.
Handpicks – 3 Reasons For The SaaS Business to become predominant in future.
Technology innovations can be more efficient when they are cloud dependent. And, to achieve that these cloud products and services need the internet connection to perform the activities.
4G and 5G. Internet.
The whole world is on the internet now. Then why don’t the businesses take that path? Advent of faster networks and connectivity is a major boon for the SaaS products to penetrate, proliferate and dominate the business environment. With internet connectivity around and a SaaS mobile application on the phone, not only we can like and comment on social media but also send out invoices to our customers (Accounting/billing mobile applications), record our customers’ data (CRM, Marketing mobile applications) , manage office projects (Project management applications) and many more.
With the internet’s omnipresent feature, the SaaS software and mobile applications can be fully potential with no barriers. Both tech and non tech companies can make use of these SaaS applications according to their business requirements. From an IT company to a dairy industry, from a supply chain company to a retailer shop, everyone who has the internet can do business functionalities using these SaaS applications.
This combination of internet connectivity and SaaS software will enrich the productivity, capacity of the businesses.
Now, having a smart phone in hand is working a smart business.
Collaboration and productivity.
The Covid19 pandemic has come as a testament to people’s adaptability to changes. There was not much necessity for us to invent (except for the vaccine) or discover something new to withstand the situation. Only thing we were required to do was adapt to the changes happening. Similarly, in business context, businesses didn’t have to worry much about the absence of any platform, feature to withstand the pandemic. They were and are required to just adapt to changes. From on-premise to cloud-software adoption. Because, they witnessed that their teams working remotely lacked collaboration and productivity as they can’t sit together to discuss and work together.
SaaS software tools have the capacity to engage all the employees and extract their full potential in working. This increased demand for collaboration and productivity boosts the demand for SaaS products and services in high lines. Just with the internet connectivity, anyone can access the software (which means they can access their work) from any part of the world. Companies from small to large have realized the fact. And so they are starting to adopt the cloud in every possible department/team of their businesses.
Usage of SaaS in business enables employees to work together despite not sitting together.
The last reason but not the least. SaaS model is going to be predominant and prevalent in future owing to its capability to get integrated with each other. One software can be integrated with another to perform an activity or action.
Normally, the different departments in a company, using other software models, find it hard to bring the collaboration to the work context. The water-cooler conversations are for sharing random stuff and not for sharing business related things. With this integration benefit, businesses can enable the contextual connection between different departments in it. Teams can collaborate, get the software connected and do the workflows, and bring results to the table.
SaaS can bring harmony in your business processes and workflows as well.
Bonus Point – In addition to these aforesaid reasons, we would like to comment on the deciding factor. Yes, money. The SaaS software model doesn’t require the customers to invest in maintenance, software development and so on. Also, its subscription model enables them to own their investment. If they want they can subscribe to it and leverage. If not, they can cancel the subscription anytime.
Closing for now to opening a next topic later in this SaaS series
Having seen the three reasons for SaaS businesses to rule the industry in future, we will be covering what are the three important steps to follow to building a successful SaaS product. Stay close. Block your time then for us.