SaaS has allowed businesses of all shapes and sizes to get lean, save costs, and automate tedious day-to-day tasks. As the number of SaaS companies increase, providing plenty of different use cases, more and more businesses are getting their needs met on the cloud.
If you’re thinking about using SaaS or have already dipped your toe into the water, you’re definitely not alone. In fact, the SaaS industry has blown wide open in the last few years, offering cloud-based services that manage, analyze, and automate.
What is SaaS?
SaaS stands for Software as a Service, and it refers to a software delivery model that runs on a subscription basis and is centrally hosted. Users pay monthly to access cloud-based software that often uses automation, machine learning, and AI to streamline tasks and provide results quicker than any human could.
So what do you need to know about SaaS this year?
Growth of the SaaS Industry
The SaaS industry was relatively unknown even as little as a few years ago. Since machine learning and automation hit the big time, we’ve seen more and more cloud-based companies arrive on the scene, offering everything from customer management platforms and social media automation tools, to accounting and invoicing software.
The SaaS market is currently growing by 18% each year
Mobile SaaS is on the rise, too – the market is set to reach 7.4 billion by 2021
The average firm with over 250 employees uses more than 100 SaaS applications
Smaller companies with up to 50 employees use between 25-50 SaaS applications on average
This year is set to see more small businesses than ever tapping into the power of SaaS, with around 85% investing in a cloud-based solution
83% of company work will be carried out from the cloud this year
63% of businesses cite digital transformation as the main reason for using SaaS applications
70% of CIOs claim that agility and scalability are two of the top motivators for using SaaS applications
Who Is Using SaaS and What Are They Using it For?
Both small and large businesses are leveraging SaaS in one form or another. And, as the industry gets bigger with more options, we can expect to see an increase in SaaS solutions taking over from more traditional applications and activities involved in running a business.
38% of businesses are running almost completely on SaaS applications
73% of businesses are planning to use SaaS to manage all of their systems this year
This year alone, SaaS spending will double in businesses of all sizes
The most popular use case for SaaS is personalization – 89% of businesses are investing in tools and software that allow for personalization
55% of businesses that use SaaS use it to run their website, while a further 54% use it for email marketing and management
Other popular use cases include SaaS for communications (26%), mobile services (23%), CRM (21%), productivity apps (16%), data analytics (14%), document management (11%), and database servers (11%)
54% of CIOs expect to use SaaS for mission-critical cases over the next couple of years
38% of businesses use SaaS solutions to enhance disaster recovery capabilities
The most common SaaS applications that companies allocate budget for are operating systems (12%), security software (10%), virtualization (10%), and productivity (10%)
The Benefits of SaaS
SaaS doesn’t just save time and help automate mundane, everyday business tasks. There’s a reason so many companies of all shapes and sizes are leveraging it in some way. The use cases vary from business to business, but those that are using SaaS in some capacity are seeing some great benefits.
86% of companies that use SaaS see higher employee engagement rates
39% of businesses claim that the most important benefit they saw was improved business agility
Other important benefits include lower overall cost (35%), the ability to focus resources on more important projects (34%), and the ability to substitute upfront costs with regular monthly payments (20%)
Moving to a SaaS solution has provided companies with a 15% reduction in IT costs and a 16.7% reduction in IT maintenance costs
It’s helping businesses scale, too – 20% of companies that use SaaS have seen an average improvement time to market
37% of businesses claim that the flexibility of cloud-based systems is the biggest selling point
It’s Time to Start Using SaaS
If you’re not already tapping into the power of SaaS applications for your business, why not?
The SaaS industry is exploding with numerous different kinds of tools and software that can help out with pretty much every part of business. Not only do these cloud-based applications save time and costs, but they allow you to automate repetitive tasks so you can spend more time on the important parts of your business.
The SaaS industry will continue to grow through 2021 and beyond, bringing more top-level solutions with it. There’s no time like the present to start investing in time-saving tools and applications.