The role of software in the modern era has increased exponentially. No matter if it is personal work, office work, education, manufacturing, or any other industry, each of them is using some form of software as a service application. These applications not only make the work easier but also make an organization more efficient which leads to long-term economies of scale. To understand software as a service in greater detail, we can analyze the industry with the help of the following graphs.
Cloud Investment by Type
The software industry is booming and is expected to grow further in the coming years. Recent statistics show that cloud investment in different platforms is one of the main ways in which the software industry is growing. In 2016, SaaS or Software as a service Technology had 46% cloud investment which increased to 64% in 2019. Similarly, IaaS or Infrastructure as a Service had 32% cloud investment which reached 56% in 2019. For Platform as a Service technology, cloud investment was 40% in 2016 and 58% in 2019. The increase in all three sectors in three years shows the added use of cloud technology.
Top 10 Saas Companies (In Billions)
The role of software in modern businesses has increased the number of companies developing new software. Among the top 10 SaaS companies, Adobe has the first position with a market cap of $294.7 million. Adobe has developed a wide range of applications for personal computers as well as enterprises. Salesforce comes 2nd with $238.2 million in terms of market cap. Intuit is also one of the best SaaS companies with $183.5 million in market cap closely followed by Shopify at $173.9 million. Other top SaaS companies include ServiceNow, Snowflake, Atlassian Corporation, Square, Workday, and Zoom.
Challenges in Managing Saas Applications
SaaS applications are deployed by a firm having specialist experience in Information Technology and related programs. However, these firms are also facing several challenges when managing SaaS applications. From the graph, it can be seen that 49% of companies highlighted Controlling Application Sprawl as a major challenge. 26% of firms highlighted that Discovering Unmanaged Applications also causes problems for SaaS application management. 14% stated that Minimizing Unmanaged Spend is a challenge. Only 11% agreed that Providing Guardrails and Governance can be a challenge in managing SaaS applications.
Challenges for Organizations Engaged with SaaS
While SaaS is one of the most useful applications for organizations, there are several aspects that become a challenge for a company. Security is the most important challenge which has been highlighted by 66% of organizations. With the increase in cyber-attacks, security is an important concern that could hinder the work of SaaS applications. 60% believe that Governance and Compliance are a challenge with SaaS. 58% of businesses believe that the expertise for cloud technology is lacking in the employees which makes SaaS a big challenge. Other important issues highlighted by numerous organizations include Privacy, Vendor Lock-In, Cost, Lack of Visibility, and Unplanned Outages.
Usage of Saas, Iaas, and Paas in Businesses
SaaS (Software as a Service), IaaS (Infrastructure as a Service), and PaaS (Platform as a Service) are three of the most common ways in which software is deployed and used in modern businesses. Surprisingly, the figures for these three services are quite high. About 89% of enterprises are using SaaS in some way. 73% are using Infrastructure as a service while 61% of businesses are using Platform as a Service. This shows that there is a high dependency on different types of platforms of service nowadays.
Public Cloud Adoption for Enterprises (2020)
Public Cloud Adoption is one of the most important phenomena for contemporary businesses. Many businesses have already adopted the technology while some are experimenting and planning to use it. There are different types of public cloud adoption platforms as well. 76% are currently using AWS while 12% are experimenting and 5% have plans to use it. Azure is also a great platform used by 69% while 18% of users are still experimenting and 5% have plans to use it in the future. Google Cloud has been popular for a long time with 34% active users, 26% experimenting, and 12% planning to use it. Other popular public cloud adoption platforms for enterprises include
Market Size of Saas (In USD Billion)
Conventional business models did not rely on SaaS as much as modern businesses. For this reason, the market size of Saas has increased beyond a $100 billion market size. As of 2018, the market size of SaaS was $80 billion. With an 18% increase in the next year, the market size reached $94.6 billion. In 2020, the market size crossed $110 billion which was an almost 15% increase compared to the previous year. By 2021, the market size was $126.7 billion which was more than a 50% increase as compared to 2018. It can be inferred that the dependency on SaaS has increased greatly in recent years which assisted in the market growth as well.
Usage of SaaS Applications
SaaS has a great deal of usage in the modern world. Software is used by all the corporations of the world. Even small businesses have started to use SaaS. Most usage of SaaS has been seen in the case of communications where 26% reliance is on Saas. 23% of Mobile services are also using SaaS applications in one way or the other. Customer Relationship Management is an important business module that uses SaaS applications for better customer management and accounts for 21%. Productivity applications have 16% usage of SaaS applications while Data Analytics requires 14%. Document Management and Database Servers also require SaaS and make up 11% each.