SaaS, also known as Software as a Service, is a cloud-based service where you can access an application via an internet web browser. The software application could be anything from office software to unified communication. With its ease and affordability, more companies are adopting this solution and pivot to remote works. According to Gartner, SaaS revenue is forecasted to reach an outstanding amount of US$151 billion by 2022. In the wake of the global pandemics, the number is expected to increase even higher with its accessibility and a wide range of services that companies can adopt. So, what are some of the trends and statistics that we see in 2021 in the SaaS industry that we can look out for in the upcoming years?
SaaS stocks have strong prospect amidst global pandemics
While most industries took a hit due to COVID-19, cloud services are still crucial to many businesses. The growth is expected to grow by 17% in 2020 alone. Furthermore, the adoption of 5G has a significant impact on SaaS technology. As it is expected that 5G will cover 65% of the population by 2025, the invention of 5G networks can allow businesses and individuals to adopt the technology rapidly. However, data security and reliability remain the concerns for many companies as users may find themselves in danger due to leaked data.
More companies are adopting SaaS solution
We know many companies, but what are the statistics? Global SaaS workload onloads are expected to reach 380 million by 2021. Its growth is due to improved SaaS automation and agility abilities. Nevertheless, cybersecurity and lack of skilled workers, as mentioned previously, could hinder the market growth. Hence, for companies to have a competitive edge, they need to look into a SaaS organization due to its low barrier to entry, accessibility, and scalability.
The technology has become increasingly popular as it can affect and improve SaaS in many different ways. Its collaborative teamwork allows users to better operate their businesses by gaining valuable data, automating, and customizing services. Overall, optimizing and improving their productions. Artificial intelligence with SaaS technology proved to be an efficient and responsive solution. If successful, it could contribute US$15.7 trillion to the global economy by 2030. Hence, artificial intelligence allows SaaS companies to leverage their capability to evolve the progress without extra manpower.
In the past decades, many SaaS technology has been created to be a one-stop solution for a diverse range of business problems such as sales, human resources, and accounting. However, it was deemed too overwhelming for companies who might prefer a more dedicated solution based on their needs. Therefore, the vertical-driven solution is created, whereby the Software was established to address the specific needs of the industries and supply chains. It allows the SaaS provider to adapt to features by clients’ demands. This will enable more flexibility and lower customer acquisition costs. For example, Textura is one example which the companies focused on construction management. Its cloud services’ usage creates a network effect that benefits participants as more than 85,000 general and subcontracts are connected to the platform.
Companies are now focusing on producing creative content rather than technical content. This means videos, blog content, interactive application, and many more. Nowadays, it is more customer-oriented than the service itself. Customers want to feel that they are being cared for. They need to be the inspiration and educators for their clients continuously. Hence, to stay competitive, companies need to stay true to their mission and aim. Communication is one of the most important elements to build the platform between clients and companies themselves.
A more secure business
With security as one of the main concerns for SaaS technology, more hybrid cloud adoption can be utilized. It is the integration of public and private clouds. Companies will be able to allow applications and components to interpolate across boundaries. For example, a company can use an easily scalable public cloud for its dynamic workload while leaving a less volatile and sensitive workload on their private cloud. Such a solution aims to help simplify business but also secure data safely and effectively. It is the best of both worlds and allows companies to tap on their advantages simultaneously.
Concluding thought of the SaaS economy
SaaS will continue to grow with the effect of digitization. Companies should be aware and understand these trends to ensure that they will withstand other competitors and have that competitive edge.