January 8, 2020 Last updated February 27th, 2020 63 Reads share

Software As A Service(SaaS) Market Is Booming Worldwide

Image Credit: DepositPhotos

What Is SaaS?

When the applications are accessible by consumers and are provided by a third party that manages it as well,(the whole process takes place over the internet) then it is termed as SaaS. It is a form of cloud computing software service. The need to install and run the software gets eliminated with this kind of software service. 

This is beneficial for organizations that do not need to run the software on their data centers or computer. This also provides other advantages like:

  • Elimination of licensing cost
  • Acquisition Cost
  • Maintenance Cost
  • Provisioning Cost

The SaaS market segmentation is based on the model of deployment and it can be distributed into the public cloud, hybrid cloud, and private cloud. The positive trend in the market was observed by private and public clouds and the hybrid cloud is likely to experience better responses in the upcoming years. Outsourced software development services can be done in a much faster and easier way. Also, the use of SAAS also can be done without installing the app or software.

The bifurcation of the SaaS market is possible as per the application, into:

  1. Customer Relationship Management(CRM)
  2. Enterprise Resource Planning(ERP)
  3. Supply Chain Management(SCM)
  4. Human resource management(HRM), etc.

Other than this, messaging applications, collaborations, platforms for web conferencing are other types of applications. SaaS observes the greatest market share through CRM. The vertical segmentation of the SaaS market can be done into Information Technology(IT), Banking, Financial Services and Insurance(BFSI), manufacturing, telecommunication, education, retail, and healthcare, etc. In the vertical segment, the largest market is held by BFSI. Also, outsourcing software development services can be easily done with any third party company contractor so in that way, it eliminates a lot of expenses for the company.

Talking from the regional aspect, the SaaS market share is the largest in North America. The solutions that are based on SaaS are the reason behind this largest market share. Web conferencing, Human Capital Management, emails, and office suits are some examples. It is anticipated that the Asia- Pacific is growing at the most rapid rate. This is because the vendors that are responsible for producing continuous support, marketing, and sales services to their customers are on a hike.

The Importance of Cloud Computing Services

In today’s world, the business and data with the help of which the company and its work are being carried is the most valuable asset that any company could have. Now, to manage these data the cloud computing services are used.

What happens is that, there can be a large company or an enterprise that can have a massive amount of data that needs to be properly managed and also used for exchange with other branches or sectors in the company. The clients and employees working for the company may require this data. So, sharing these may be complicated without a backup. So at that point of time, the cloud computing services comes with the two most cost-effective and very good options in the world of digital platform which is known as SAAS and IAAS. These two services are the main factor that the company data is being shared and also the important data which needs to be kept confidential are also kept exclusively with immense security. Outsource software development and outsource software development services are really easy with this simple process or technique with the medium of network access.

Factors Leading to the Growth

The services are now provided at a global level through small companies as well. Outsourcing software development services and cloud computing technologies are the reasons for this kind of business growth. In this environment, all business organizations look forward to building a business that provides services all across the world.

The strategies of workforce investment needs enhancement and that is possible only through trust-worthy business data. It is imperative for a business organization to discover the problems that are potential in their business and the cause behind them. 

If we ponder upon the fact that what has made SaaS popular among various enterprises then it is the instant messaging and social media that is being used extensively and has made SaaS famous along with it.

Are There Any Threats Too?

The SaaS industry though faces certain threats that act as an obstruction in its growth. It faces the challenges of data security issues, the lack of consistency and high-speed internet connectivity, and lack of integration. 

Final Words

Providing software as a service is providing help to many people in the evolving digital world. In conclusion, the company that follows this way of productivity will obviously lead with their idea and the market growth using cloud computing services will also be progressive for them.

 

SaaS model -DepositPhotos

David Smith

David Smith

Cuelogic Provide services in Software & Product Development, Cloud Computing Services, IoT, Big Data Services and Machine Learning Services. Everyone at cuelogic passionate about technology and obsessed with engineering challenges. Our rich industry expertise in Finance, Healthcare, Manufacturing, Media, Education and many more help to solve complex challenges and provide superior experience.

Read Full Bio