BRANDi
2 min
Updated: Feb 17, 2023
Software as a service (SaaS) has become increasingly popular in recent years due to its convenience, affordability, and scalability. With SaaS, users can access software applications without downloading and installing them on their own computers. Instead, the software is hosted on a central server and made available over the internet, allowing users to access their applications from any device, anywhere.
CONTINUED GROWTH
The growing popularity of cloud-based services has changed the way employees communicate in the workplace and it is in high demand by many businesses due to its productivity. According to the Gartner Peer Insights and Zluri 2022 State of SaaS Management Report, companies currently spend 10% of their revenue on SaaS. The former even states that with the rapidly growing demand for SaaS, companies will grow up to 17% or $195 billion, in 2023.
SAAS FOR VERTICAL INDUSTRIES
Because of its continuous specialization, SaaS has become more industry-vertical specific. It enables businesses to have custom-designed software that meets their specific requirements. The number of existing vertical SaaS companies increased by at least 28% between 2020 and 2021. SaaS companies with millions of dollars in revenue include Toast, Procore, Blend, and ServiceTitan. ServiceTitan, for example, found success by broadening its platform to include human resources, marketing, and other trade businesses, which are now valued at $9.5 billion. With increased demand and popularity among industries, SaaS will continue to grow.
UNBUNDLING
SaaS is increasingly being delivered in the form of bundles. That is, its features and capabilities are packaged in ways that provide customers with higher-tier features. However, these higher-tier features came at a higher cost, which raised concerns due to their limitations to a broader customer base. Almost half of the organizations cited vendor lock-in as a barrier to SaaS adoption. SaaS changed its package pricing and packaging model due to that, making it more inclusive and customer-specific. Customers can now be more selective and select specific features that are important to them.
SAAS IN BUSINESS OPERATIONS
There are numerous ways for businesses to incorporate SaaS into their operations. SaaS, for example, can be used for Customer Relationship Management (CRM). CRM tools, in particular, help businesses manage customer relationships, such as sales, marketing, and customer service. Another application of SaaS is for business intelligence. Business intelligence tools, such as reporting and analytics, enable businesses to gain insights into their operations and data. SaaS can also be beneficial for various management tasks, such as project management and content management systems. It can help businesses plan, track, and manage projects and content like blogs and websites.
SaaS has revolutionized how businesses access software applications; it provides a cost-effective solution for companies that do not want to purchase expensive software licenses or manage. With technological disruption and globalization, SaaS has aided many organizations in terms of agility and cost-effectiveness. Without a doubt, the widespread use of SaaS will increase exponentially.
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