In these tumultuous times, businesses, whether small or big ones are looking for a way to improve their growth through the rise of the SaaS industry.
However, what SaaS is and how it affects business growth.
It is essentially a business model that is embraced by different largest organizations of the world. It often involves a third-party provider that hosts an application that is made available over the Internet generally through a subscription model. It differs from the previous type of software delivery that involved buying an application that has to be installed physically at a customer’s place of the business.
These applications completely remove the need for organizations to run apps on their own machines or in their data centers. Usually, the users can access the application from any of the internet-enabled devices, and any particular software updates are automatically performed.
The growth of this industry has led to the rise of products as well as apps utilized on a daily, and sometimes hourly, basis by both individuals as well as businesses around the world. Enterprise application development has propelled this.
There are thousands of SaaS companies in the world at present. The growth of the entire SaaS industry in the last two decades has been tremendous. The acceleration has continued at quite a fast rate in recent years. In a few years, thousands of SaaS companies have been formed.
Reason for Growth of SaaS
Different organizations in different sectors and of all types and sizes are adopting SaaS solutions. There are numerous factors driving this.
The primary catalyst is the overall increased availability of the Internet all over the world since the rise of it in the 1990s. It has made the idea of remote teams as well as hosted software a reality and a preferred solution for a lot of businesses. With billions of people having internet access, SaaS growth has been fuelled by it.
Benefits of SaaS Applications
Essentially, the major benefits of SaaS applications are improvised communication, reduced costs, as well as increased employee engagement and even their satisfaction. IT professionals listed three criteria they cared most about whenever buying SaaS applications or enterprise mobility solutions.
- Cost- These applications are generally sold utilizing a subscription-based model, which reduces the need for up-front, expensive purchases.
- Security- Different SaaS companies are quite focused on data protection, which often results in the topmost level of security for the respective client information.
- Ease of Usage- Various SaaS applications have integrated and seamless customer support features that can assist users in real-time.
Companies and Sectors dominating the SaaS marketplace
Basically, the nature of SaaS actually means it has attracted different sectors of the business landscape more than others with different startups launching in a particular niche. These remote teams are a specific feature of the businesses with a SaaS focus. Also, major IT leaders like Adobe and Microsoft have now diversified and moved into this SaaS marketplace in order to satisfy the requirements of the customers. Along with fulfilling the needs of customers, these apps have even enabled businesses to gain new and in-depth insights into different aspects of their own organization. They are able to manage external relationships with more effectiveness, and businesses can gain insights into a different aspect of their workplace, right from project management to even employee engagement. A SaaS development company should keep this aspect into consideration.
Also, CRM or customer relationship management has been the bedrock of the entire SaaS marketplace ever since the launch of Salesforce. CRM accounted for almost one-third of total revenues in the entire global cloud apps market. The biggest functional markets for cloud apps are CRM, human capital management, Collaboration, Procurement, and ERP Services, as well as Operations Management.
As a pioneer of SaaS, Salesforce has constantly racked up a major chunk of market share over the years, which was replaced by its top position by Microsoft. In terms of market share, the top SaaS organizations are Microsoft, Salesforce, Adobe, Oracle as well as SAP.
Future of SaaS marketplace
Various businesses are already using some type of cloud CRM application, and growth in this given section of the actual marketplace is expected to be quite slower than the others. However, business areas like Analytics, Content Management as well as Product Life Cycles are more likely to see the entire SaaS revenues grow at a much speedier rate with products in these different areas being in their early stages. Also, the growth of cloud subscriptions in these particular areas is more likely to correlated with quite an increased development focus along with providers migration the current customers to the latest cloud apps. Also, as well as SaaS operating in various functional business areas in the upcoming years, the entire industry may even experience geographic change. SaaS application development will be guided by this in the future.
Potential for Expansion
Almost half of the world is currently home to some type of SaaS organization, while a lot of people are wondering where the next expansion will actually head next. In these years, one region may see significant growth. Utilized as a force for good, the SaaS has the actual potential to easily transform the lives of people across Africa. Even though some have tried as well as failed, it is quite evident that SaaS has the actual potential to expand all over the world. SaaS also has the actual potential to transform the way people approach their daily work and levels of actual employee engagement.
Also, businesses developing these SaaS apps are essentially the embodiment of the positive aspects of modern-day working cultures. Essentially, the most part is actually conjuring up the vital image of a swift working environment with regular innovation, innovative reward systems, and employee flexibility.
Happy Employees- SaaS or Non-SaaS
Basically, there are many benefits to any particular organization if its employees love to work there. Also, having faith in the business and its product can easily breed a much harmonious culture that helps the teams innovate further and even respond to the existing customer demands. Along with this, productivity may even increase as well as employee turnover is more likely to reduce. It is important in quite a competitive industry like SaaS, where the fast pace of change means a higher rate of total employee turnover can easily affect product development by any Android app development company.
Also, engaged employees are much likely to offer a better experience to their own customers. Also, it is more likely to improvise customer retention and even have the same effect on the bottom line of the company.
Increased Security Risks and Rise of SaaS
Right in the early days of SaaS, one major concern raised was the actual security threat posed by a rather lack of on-site physical infrastructure. Along with this, data breaches are becoming more frequent, and there is an increase in their size, which validates the concern.
Irrespective of the direct results of SaaS or even the by-product of the Internet’s increased availability as well as increased expertise of hackers, there is significantly little doubt that organizations require exercising increased vigilance in order to keep business as well as customer data protected. Mobile app development services need to consider this aspect of app development.
Essentially, there is a little doubt that the entire SaaS market has grown at quite an incredible rate in the last few decades. Also, with the numerous companies embracing the cloud app increasing steadily, along with the untapped potential of various emerging markets, there is certainly very little to suggest this growth will actually slow down any time soon.