You may have heard people talk about SaaS all the time, but do you know what it is all about and its history? Let’s jump into the story of rise of SaaS startups.
SaaS is basically a third-party provider hosting an application that is made available to others over the Internet, through a tailor-made subscription model. It is generally hosted via cloud-based technology. You don’t have to download special software on your PC and can access everything needed through a standard internet web browser like Safari, Chrome, Firefox, etc.
Owing to its accessibility, it is now a key technology bringing heaps of benefits to enterprises worldwide irrespective of their sizes. Even though SaaS applications have been around for a long time, some businesses still have second thoughts on whether it will be a viable option to scale up their business. If you are planning to move your business app to SaaS, then there is no better time as the present.
Interesting SaaS Statistics for 2020
- The annual growth of the SaaS market is nearly 18%
- 73% of organizations plan to make all their systems SaaS by 2020
- 86% of businesses that use SaaS have experienced relatively higher employee engagement
- The SaaS market is expected to reach 7.4 billion by 2021
- 90% of companies in Asia and the Pacific use a multi-cloud environment
- 80% of organizations already use at least one SaaS application
The above facts denote the clear rise of SaaS startups. In the past few years, the cloud computing market has grown significantly leading to a sharp increase in the number of software-as-a-service (SaaS). Using this software delivery model, businesses can access any device with just an internet connection and a web browser and they don’t have to run applications in their own data centers.
Gone are the days when established companies only used SaaS to grow their businesses. Today, even small startups are adopting the SaaS model to manage their day-to-day operations better. Thanks to the worldwide lockdown, (SaaS) has the opportunity to see growth.
Key features of SaaS
- Flexible payment options
- Accessibility
- Scalability
- Security
- Consistent updates
- Increased collaboration
Many organizations regard SaaS applications as an alternative option to the traditional software installation model and they offer the following benefits to businesses:
Lower Costs
As SaaS resides in a shared environment, the costs of hardware and software are very less when compared to the traditional model. It’s cheaper to use both for the business and the users. A few years back, key software was only affordable to those who have big money, but today it is available to even smaller organizations or people with less financial security. All these are made possible only through SaaS providers.
Saves Time
Since the software application is already installed and configured in the SaaS model, you don’t have to spend time unnecessarily on installing new software. This is a huge benefit to the user as they can easily access what they need anywhere anytime from the cloud. This minimizes the overall waiting time.
Instant Upgrades
Independent Software Vendors aka ISVs are regularly revamping their software solutions. Once they have new releases or updates, they can immediately make this available to their clients. Costs are reduced for both the user and the SaaS provider and the user an upgrade is just a quick installation. Whereas in the traditional model, you have to fork out a lot of money to avail of the latest upgrade.
Easy Integration
SaaS solutions are stored in cloud environments and are pretty scalable in general. This permits easy and quick integration with other SaaS offerings. You don’t have to buy new servers, you just need to allow the integration to have access.
User-friendly
The main reason why many organizations all around the world flock to SaaS solutions is due to its user-friendliness. It is usually accompanied by top-notch practices and samples inside it. You also have the opportunity to test the software functionality or a new upgrade in advance before it is released officially in the market. Moreover, many ISVs offer free trials and ‘sneak peaks’ to give their clients a chance to try the applications before purchasing them.
The SaaS market is flourishing and the demand for SaaS solutions is increasing daily. These are the key SaaS trends you have to look out for in 2020.
- Artificial Intelligence – Allow organizations to learn more from their data & offer personalized services
- Thought Leadership – Offer holistic experience to the customers
- Integration Capabilities – Boost client trust and offer a unique service for each partner enterprise
- Vertical SaaS – A more targeted solution for particular industries & supply chains
- Pricing Changes – Reinvent pricing models based on the needs of the clients & customers
In the last few years, SaaS startups have experienced tremendous growth in the market, and at present, there are nearly 15,529 SaaS companies across the world. A recent study shows that the SaaS market will reach $157 billion in revenue, hence attracting a lot of Venture Capitalists. The technology is still continuing to develop and evolve.
The main factor that attributes to the growth of SaaS startups is the increased availability of the Internet across the globe. This has made the concept of hosted software and remote teams a reality for many businesses.
Now, everyone has started to accept the fact that remote working is the new norm so SaaS startups are expected to see growth. This is because they have fine-tuned their process in such a way that they can operate perfectly without the necessity of making people working an office setup. The SaaS applications have made the remote working a painless process. Businesses across the world can easily rent the services they need and enjoy a hassle-free life.
Some think that the growth of the SaaS market is just a fad and the growth spurt will end eventually. But it is far from the truth. As the number of businesses embracing cloud applications are skyrocketing, it looks like the growth will not slow down any time soon. This article is a clear proof there is a rise of SaaS startups.
What’s your take on SaaS startups?