Why is SaaS industry market growing fast? :)

It is estimated that the value of the SaaS market in 2020 will reach $ 76 billion, which shows both potential and dynamic development of this sector. More and more companies are taking a decision to start their operations in the SaaS model. This step provides a lot of benefits we are going to tell about in this article.

What is SaaS industry?

SaaS (Software as a Service) is an application model based on a computing cloud, which stores and executes specifically on suppliers’ computers and is available to users via the Internet. Due to this solution, there is no need to install software on the client’s devices. Issues related to installation, management and support of software are on the part of the service provider, which means that a customer receives a fully functional product.

For example, as a part of the SaaS model, the customer most of the time cyclically pays for access to the service in form of subscription. From the customer’s perspective, this is a very beneficial solution as it incurs fixed fees without any need for a one-off expense. The client also receives technical support and does not have to worry about software efficiency. In turn, the disadvantage of the SaaS solution is the lack of possibility to introduce any changes in the software by the client themselves.

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Why is the SaaS industry market growing fast?

Experts predict that by 2020 more than 70% of companies will base their services on the SaaS model. What’s more, this trend is supposed to constantly grow. In 2022, this statistic will increase to 86%.

So the question is, why is the SaaS market growing so fast? According to research conducted by Finance Online, the greatest advantage of this model is the possibility of simple optimization of software tailored to the customer’s needs. The next most important benefits include both efficient service management and ease of copying services for companies from various industries. Thanks to this, an owner of the SaaS platform can seamlessly establish cooperation with companies from various sectors without incurring additional costs related to, for example, software matching.

Why SaaS is becoming more and more popular?

We have also distinguished a lot of other factors that fully illustrate the reasons of the popularity of the SaaS model growing popularity. They were developed by Finance Online on the basis of a thorough research and customer feedback.

1. Services based on the SaaS model are relatively cheaper in relation to the existing systems.

2. The SaaS model reduces the level of operating costs.

3. Platform management and cooperation between service provider – client is much simpler, faster and more transparent.

4. Implementation of software becomes much faster thanks to the SaaS model.

5. Services in the SaaS model are optimized for mobile devices.

6. The SaaS model provides easier database access.

7. Current market trends show that in the coming years we will note a growing increase in interest and popularity of the SaaS model.

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Is Berlin becoming a new Europe’s Silicon Valley for tech startups? :)

Everything indicates that we are witnessing a revolution on the startup market in Europe. The dynamically growing market in Berlin is becoming a leader among tech startups. Until now, this title was awarded to London, but currently the capital of Germany is increasingly recognised as the new Europe’s Silicon Valley.

Brexit effects

When the British decided to leave the European Union, the attractiveness of the startup market in London began to lose value. Of course, this is still a place where you can find many innovative companies, but my recent experience confirms that Berlin is considered to be a European leader now. I want to emphasise that this is not an isolated opinion. Having been observing the startup market for over 10 years, I’ve managed to keep in touch with entrepreneurs of various directions and I’ve received clear signals that Berlin is currently the best place in Europe for the development of tech startups.

Comfortable development conditions

There are three main reasons, why Berlin strikes as a very attractive market. It is about the relatively low costs associated with running a business in this city, access to qualified specialists and contacts with other European Union countries. It all adds up to a very attractive ecosystem that favours the development of tech startups.

Being completely honest, I must say that I am impressed by the work standards that prevail among startups in Berlin. Recently, I’ve been quite often in this city, when together with the developers of Codest, we were working on creating software for few of our clients. I was delighted with the quality of work, efficiency in communication and their professionalism.

Returning to the ecosystem for the development of startups in Berlin, I would like to draw your attention to another important fact. I mean the low barrier to start a business. You might be surprised, but takes less than 7 days to launch a startup. In addition, there are many incentives available for entrepreneurs who can benefit, for example, from the support of numerous incubators or accelerators. A big plus is even low prices for an office space rent. It all adds to the progress of this market.

New Europe’s Silicon Valley

Considering what has been mentioned above, I am convinced that Berlin is currently the most attractive market for tech startups. This is a new Europe’s Silicon Valley. Of course, it is difficult to compete with the American one, but Berlin is a great example of how you can develop the tech company in Europe. The best confirmation of this is the fact that currently there are over 2,500 startups in the German capital. Quite an impressive result.

WHERE SHOULD YOU OPEN YOUR NEXT STARTUP? :)

Whilst the Silicon Valley is considered to be the world’s capital of startup, the entrepreneurship of innovative organizations is also rapidly developing in other regions of the world, such as Scandinavia and Europe. The number of startups priced at over one milliard USD is constantly growing there year by year.

Scandinavia

Spotify, one of the largest and most developmental startups in the world, has been founded in Sweden. Its capital is estimated at over USD 250 million and millions of people use this music service. The success of Spotify only confirms the huge potential of this region in the world. Also startups such as Minecraft and Candy Crush Saga were created in this country.

Another good example is Norway, that is considered to be one of the largest startup markets. A popular Opera web browser has been created there. Without a doubt, Scandinavia is distinguished by good conditions for both functioning and development of innovative businesses. It’s quite interesting that many local startups decide to outsource their IT processes to Poland. For Scandinavian startups, this looks like a convenient solution that is related to cost efficiency and high quality of services provided by polish software houses.

Europe

The startup market is also thriving in Europe. Great Britain, Germany, France and Spain are among the European leaders. According to experts, more and more investors want to invest their financial resources in European startups and consequently – stimulate their development. This occurs mainly due to the fact that there is a greater availability of workforce in Europe, and above all – qualified programmers. The same as in Scandinavia, it is getting more trendy to outsource the IT processes to Poland.

Other locations

We can also include those in the Middle East and Asia as effectively developing markets. For example, in the capital of Israel, Tel Aviv, they already have over a thousand startups, and such global companies as Facebook or Google have their centers there. Many events are hold there to that stimulate the development of startups and attract potential investors. The startups’ successes are certainly appreciated by polish developers who, thanks to a prominent reputation, can count on establishing further cooperation.