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.
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.