SaaS software programs are often available at a subscription rate to users. Just a few examples of this type of service are ClickUp, QuickBooks, and Adobe. They can provide access to the program while lowering your total cost.
The key reasons SaaS is so popular are its flexibility, accessibility, scalability, security and consistency. Besides these seven qualities that SaaS offers enterprise companies there’s also increased collaboration with it.
For these reasons, the SaaS market has been booming in recent years and is expected to grow even more in the coming years. The amount that companies are paying on average per application has steadily risen each year and it’s forecasted that this growth will continue.
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Larger companies tend to take advantage of more SaaS apps and custom software than SMBs do. In general, organizations that have over 1,000 employees use an average of 171+ SaaS applications. A study by Gartner shows that nearly 50% of all companies using more than one SaaSe products will centralize their management of them within the next five years. This is a trend that is expected to continue as businesses are looking for ways to increase their productivity and reduce costs.
Should SaaS be the future of business? Many people seem to think so. It also seems inevitable considering how many people experienced working from home during the pandemic. Many businesses owners and managers have realized the importance of SaaS within their company and employees now work more efficiently and collaboratively through it.
There are so many new SaaS companies coming out, which is both a good and a bad thing. It’s great because it means there’s so much innovation happening. But as you know, with all this innovation also come strong competition which might end up squashing some interesting startups. We should also be wary of the risks behind using SaaS. It’s vital that organizations work with their employees on how to use it properly so they’re aware of any potential risks. And they also need to make sure third party SaaS products are approved by their IT departments, otherwise sometime it becomes difficult to maintain the safety of their employees, customers and data.
|Overview||– (SaaS) estimated market is approximately worth 152$ billion|
|– 208$ billion by 2023|
|Organizations with more than 1,000 employees use 170+ SaaS applications|
|SaaS apps account for 70% of all business software usage.|
|There is a tenfold increase in SaaS apps since 2015, and by 2025 it is expected that 85% of business apps will be SaaS-based.|
|50% of businesses will centralise SaaS application management by 2026.|
|Most prominent companies in the SaaS market are Microsoft, Salesforce, Oracle, SAP, and Google.|
|SaaS growth in key markets||1||US, UK, Canada, and Germany have the most SaaS companies in the world|
|1.1||Only 2% of UK businesses are not on the cloud|
|1.2||26% of the EU is using the cloud.|
|2||Region||# of companies|
|3||SaaS, is the main startup model in Brazil and it makes up 41.12% of Brazilian startup|
|Stats on SaaS pricing||38% of SaaS companies only charge clients when they actually use the service or product.|
|In 50% of SaaS businesses, consumers are charged based on the number of users.|
|31% of SaaS businesses, they rarely give discounts.|
|30 days is the most common free trial period.|
|More than 50,000 SaaS companies give their clients discounts of at least 30%.|
|usage of SaaS||94% of the 786 technical professionals in small and big enterprises use cloud SaaS.|
|in 2017, 86% of data centre workloads were performed in the cloud; by 2021, this percentage had increased to 94%.|
|Companies use an average of 34 SaaS apps.|
|50% of US government organizations are now using the cloud.|
|SaaS popularity in businesses||Enterprise businesses see themselves as “intermediate” or “advanced” level user in 68% of cases.|
|16% of business organisations are in the beginning stages.|
|12% of companies are taking a look at what the digital industry has to offer but haven’t yet taken the plunge into participating or educating themselves about it.|
|12% of a business’s SaaS budget is for operating systems.|
|10% of a business’s SaaS budget is for productivity|
|SaaS attraction Factor||Agility and scalability:||70% of CIOs are drawn to cloud-based software applications for their flexibility and the ability to grow with the company.|
|Disaster recovery:||38% of companies are now using cloud-based systems that allow for more improved disaster recovery.|
|Flexibility:||37% of companies are adopting cloud-based systems because they offer flexibility.|
|Sales and Marketing Trends for SaaS||48% of companies have an average of one-year SaaS contracts.|
|13% of businesses use SaaS products on a monthly basis.|
|SaaS contracts with lengths of three years or longer are used by 11% of businesses.|
|The biggest SaaS businesses have blogs in 85% of cases.|
|Top SaaS firms with podcasts account for 18% of the market.|
|36% of SaaS businesses share educational materials on their blogs.|
|For SaaS businesses from other regions, North America continues to be a significant market.The software market in North America is the most developed.|
|SaaS Trends||Use of AI|