You may have heard of SaaS by now and are probably wondering whether SaaS will be successful in the future? Or maybe even if SaaS is going to actually be the future, right?
You may be thinking to yourself ‘how can the industry of SaaS possibly be the next big and successful industry in the world?’ And what is it exactly that makes this specific industry so special? Well, the truth is that the world of SaaS is already rapidly growing in popularity since customers are now adapting to the subscription-based pricing model. This has been seen as very beneficial to businesses more than it did in the past due to the global pandemic, forcing companies to pivot to remote work (at home) in which we will go into more detail later.
So, how does this underline that SaaS is the future? Well, the first big factor is that technology is expanding daily, as new technologies and solutions are being discovered and created. This links to the next point; all businesses are competitive and want to ensure that their organizations are running as effectively and efficiently as possible, therefore being the more reliable option for customers. Therefore, most businesses will want to have the most up-to-date technology within the workplace, which in the future, will be SaaS.
With facts and analytics which will be discussed within this article, we strongly believe that SaaS is the future and will be one of the biggest and most successful business models in the world. In this article, we will identify why SaaS is the future, and how SaaS will be a successful model going forward.
Is SaaS Going to be the Future?
As mentioned previously, SaaS solutions in recent years have been on an upward spiral and they will not be disappearing any time soon. It is predicted that the total generated revenue was estimated at $105 billion in the year 2020. Having an increase of $20 billion from the previous year. In addition, in 2022 it is estimated that SaaS will generate $141 billion.
A big factor that to why there was such a big increase, is due to the whole global pandemic situation. Since all offices and workplaces had to close, it had caused a barrier for businesses as they now had to work at home, which ultimately made running a business much harder. However, due to the accessibility and affordability of SaaS, more businesses were becoming reliant on SaaS solutions.
Now that you know the pandemic was a factor in why businesses and users had become more knowledgeable about the use of SaaS solutions, you may want to see some statistics that prove the world of SaaS is going to be even bigger in years to come.
Since we can measure the growth of SaaS through adoption by customers, we are able to determine how successful the industry will be in the future. This is since the number of users of SaaS products has dramatically increased in the past years. SaaS products used to be seen as a great foundation for startups and small businesses due to being so affordable and easily functional. However, in the last couple of years, more organizations are utilizing SaaS solutions, as they have so many features and benefits that they bring to a business which will discuss later in the article.
But we’re here for the statistics! Recent research underlines that:
- In 2021, 73% of organizations will be utilizing SaaS solutions.
- An estimate of 85% of small businesses has invested in SaaS solutions.
- Large organizations approximately use over 100 SaaS apps and small businesses use roughly 25-50
Why is SaaS Popular?
The key factor to why SaaS is so popular is due to it being easy, globally accessible and affordable for its users. SaaS is constantly rising in popularity as it makes certain situations for businesses much simpler, as well as reducing the cost and time of tasks that are usually tedious.
As we know, SaaS is a digital solution to an application that is accessible via a subscription online. It, therefore, makes local installations of programs on hard drives irrelevant. Resulting, in saving cost and time due to local installation being more expensive and installation times being much larger. This then enables users or businesses to use that free time on more important tasks that they could be doing, rather than having to install the program on each PC or Laptop.
The main reason why SaaS can reduce costs and time efficiency is due to cloud computing and cloud-based services. Therefore, a majority of businesses are now taking advantage and are ensuring that they can make the most out of their budgets in the software and hardware that they use.
Benefits that increase SaaS popularity
SaaS programs offer a variety of potential benefits to businesses when utilizing the traditional SaaS models rather than the old style of servers and applications.
The following are the top four benefits of using SaaS:
- Reduced time.
Software as a service varies from the traditional model when regarding the software (application) since it is already installed and configured. Due to the cloud, you can provision the server and have the application ready for use within a couple of hours. Overall, this reduces the time spent on installation and configuration.
- Lower Costs
Compared to the traditional model, Software as a service have hardware and software licenses that are much lower. Making SaaS very cost-effective for businesses, which is a huge benefit for much smaller companies that may have a tight budget.
Another advantage is that maintenance costs are reduced since the SaaS provider owns the environment which is shared amongst all customers that use the program.
- Updates and Upgrades
Due to SaaS being a subscription fee; any updates or upgrades will be done by the provider which when completed, customers are instantly able to use. Compared to the traditional model, upgrades would force you to buy the new upgraded package and must reinstall the whole application. Whereas, with the SaaS solution you do not. Therefore, this also saves you money and effort.
- Easy Usability and Accessibility
Software as a service offers easy usability for the user as it provides a very straightforward solution which is mobile. SaaS makes it easy to mobilize a workforce since users can access SaaS apps and data via any device with a secure internet connection.
Top SaaS Companies
There are numerous SaaS technology companies out there that stand out, due to the success of their system and how successful they have been in meeting their goals. It is estimated that there are approximately 15,529 SaaS-based companies, here are a few of them:
In the past, Microsoft used to be a company that would solely have their Office programs on the desktop. However, they have moved to be a cloud-based SaaS system. This is known as Office 365, which is accessible online via subscription. It provides many new and useful apps and features such as the original apps and others like SharePoint and collaborations.
Google G Suite
Google G Suite is another great example of a very successful SaaS company. This SaaS company is among the future of SaaS since it provides tools and features for collaboration and productivity. Examples being Gmail, Docs, shared drives, calendars, and sheets.
HubSpot is another SaaS company that helps other companies attract visitors, create leads, and close customers. Their tools help companies host web and landing pages, create blogs and emails, and manage any interactions from customers. In addition, to monitoring the success of campaigns and its users’ behaviour.
Now that we have cleared up why SaaS has been so successful in recent years and why it will be so successful in the future. It is evident that the future of SaaS is going to be extraordinary for most organizations since it can help make a business remote, enhance communication with clients and just being an independent business solution. SaaS will be very promising in the future due to already being one of the most secure and effective business solutions to date for the fact of cloud computing making life for businesses much easier and smoother.