Opinions expressed by Entrepreneur contributors are their own.
Almost 90 percent of the web was created in the last two years. Today’s business world will continue to be shaken by the huge influx of information. With cloud computing gaining huge momentum, SaaS is moving from the fringe to the mainstream.
In fact, even IT vendors who used to sell standard software are adapting to this phenomenon across industries. Many companies are now using Software-as-a-Service (SaaS) as an essential part of their daily operations. In fact, there are a lot of SaaS applications to enhance business processes whilst reducing IT costs and responsibilities, ranging from cloud-based CRM systems that boost sales to customer support and ticketing systems that improve customer service.
Gartner forecasts that SaaS platforms will generate revenue close to $117.7 billion by the end of 2021. It is no shock that this surge of SaaS solutions has been due to the global pandemic, which forced companies to switch to remote work in order to stay connected and afloat in the shattered business world.
So what factors fuel this industry constantly and make it successful? Let’s dig in detail.
A Quick Overview of SaaS
A strong internet connection and a web browser are all that are needed for the software to be delivered as a service. According to Tech Target, SaaS frees businesses from setting up and managing their own computers and data centers. Software licensing, installation, and support can also be eliminated due to the eradication of hardware acquisition, provisioning, and maintenance expenses.
Most common examples of SaaS products: Google, Facebook, Shopify, etc.
SaaS is not new; in the early 1990s, “SaaS” entered the digital market. Have you remembered how earlier, employees connected to an in-house server to access all the company’s applications and data? Yes, this is SaaS, where you only need to log in with credentials, and you can access the service.
Now it’s time to look at how SaaS applications are gaining the customers’ trust amid the pandemic and how it reaches a tipping point.
SaaS, a Prudent Investment Made by Digital Gig Entrepreneurs
The Covid-19 pandemic has driven the world to become more and more digitally connected at an unprecedented rate, driving more demand for software-as-a-service (SaaS) companies.
When the pandemic started and companies found themselves remote, Zoom saw a sudden increase in demand. Over the past two quarters, the platform has experienced revenue growth of over 350%.
Related: Best Practices for SaaS Copywriting
The SaaS (Software-as-a-Service) industry has experienced significant growth as global spending on digital transformation has been skyrocketing almost 10% every year, and consumers are also pivoting to online mode, whether they want to eat, pay, or be entertained.
SaaS Applications Are Thriving in the Current Scenario
SaaS products have become more widely adopted in the wake of the pandemic, but companies find some difficulties moving from legacy systems to the cloud. In 2008, only 12% of businesses implemented cloud-based apps. And now you can see, 73 percent of businesses say they intend to deliver almost all of their apps as SaaS this year.
In today’s digital world, It’s not hard to understand why SaaS has gotten so much attention and investment over the last few years. As entrepreneurs do not need to install or distribute these solutions physically. In addition, they require significantly less upfront investment.
Businesses of All Scales Putting “Digital” at the Heart of Strategy
In spite of massive challenges and unforeseen life twists, the Covi-19 pandemic has not brought everything to a halt. Coronavirus has caused significant health, social and economic consequences; however, technological advances have ensured that we can continue to communicate and collaborate virtually.
Entrepreneurs earlier were skeptical about digital transformation, but the pandemic has made them realize this is the only way to establish business resiliency in this uncertain world and what could be better than SaaS applications as you only need to pay basic subscription fees, and you are on the digital bandwagon.
SaaS businesses are riding the wave of this digital transformation. Despite long-standing fears about investing in digital transformation initiatives, SaaS apps are attracting business, even from old schools.
SaaS Helping Businesses to Stay Afloat Amid Uncertain Economy
The Corona outbreak has changed the business environment fundamentally, but the phrase is cliché at this point. Rather than focus on the changes themselves, we should consider how businesses have responded to this change and what approaches are most sustainable over time.
With SaaS solutions, businesses are able to decrease operational expenditures, increase flexibility, and mitigate operational risks by making smarter use of the resources they have available.
Stay Sassy to Thrive
There are several reasons why SaaS is regarded as the future of nearly all computing, including lower costs, easier upgrades, and better scalability. Rather than heavily investing in hardware and licensing, many small and medium businesses are now choosing to ‘rent’ the software. So, the future of SaaS is promising, and we are now well beyond the early stages of implementation.