You probably use multiple SaaS applications daily, but maybe you have never thought of these tools as SaaS. It may be the case that you are not even familiar with the term SaaS. So what is SaaS and why is it growing so much?
What is SaaS?
SaaS means “Software as a Service” – a business model that works on a subscription basis. By subscribing to it, users don’t need specific hardware – just access to the software, which is hosted at a data center (in the cloud). Zoom is one example of a SaaS company, while others could include Microsoft, Dropbox or Google’s Gmail, Drive, and Hangouts.
The software distribution model works like this: third-party providers host applications available to clients online. This means that SaaS can be categorized as cloud computing. Other types of cloud computing are IaaS (Infrastructure as a Service) and PaaS (Platform as a Service).
SaaS products are usually extremely flexible and adaptable to all kinds of companies and needs. Their terms of payments make them especially accessible and they are typically scalable, allowing for upgrades as a business grows. Updates and new features mean they are also very secure.
Another important feature of this sector is that it focuses on users’ needs, listens to their feedback and collaborates with other people and organizations to constantly improve its products.
SaaS growth in numbers
SaaS seems to be quickly taking over the cloud computing market. According to Globe Newswire, the sector is expected to be worth 462.94bn by 2028. The graph below shows that SaaS has increased every year and the trend is only accelerating.
How to explain the growth??
These businesses focus on constant innovation to stay ahead of competitors. It is extremely easy for users to switch their service providers just by cancelling a subscription, so these companies must keep their users happy. This means extensive, constant research into needs and trends. It also means coming up with new ideas to make processes easier.
All of this requires regular or constant contact with clients, understanding their needs, listening to them and finding solutions to their potential problems. Anticipation is the key to innovation. Satisfying user experience is also critical because customers don’t just want their problems solved. They want simple processes so they can concentrate their efforts on other tasks that really matter to them.
SaaS growth and features in conclusion
In short, the main reason why such companies are growing so much is because they listen to their customers, identify their problems and understand their needs. Moreover, they change the way many companies work, saving them time, money and effort. Companies that help other companies grow tend to grow themselves.
What are the key features?
Thses products can adapt to all kinds of needs, making it really flexible and accessible. They can also be upgraded and their products are updated constantly.
What are the reason for such growth?
These products are growing in popularity thanks to their innovation and because they’re easy to use. The ability of these companies to listen to their audiences and provide solutions to their problems have cemented them as pioneers in innovation.