SAAS known as Software as a service is a type of software purchasing model that allows customers to purchase the software and enjoy the benefits without worrying about the cost of infrastructure maintenance.
SAAS works like a subscription-based model where customers can use the software over the internet. A SAAS company creates software that is uploaded to the cloud for each user’s usage.
There is no additional cost for using SAAS because a user can cancel the subscriptions when he/she wants to at any time. SAAS is easy to use and easy to provide. A SAAS provider will host his software using his data servers on the cloud. A user can use the software by paying monthly or yearly fees to access it.
How is SAAS different from its competitors?
Well, the only difference between SAAS and others is the internet. SAAS software is used only if the internet is available. But other traditional software has to be manually installed on a computer. SAAS differentiates from the standard installation of software to build the server.
Advantages of SAAS
- Easy Updates
- Effortless to use
- Scalability and Integration
- Cheap costs
- Time effective
What distinguishes a saas platform from regular software applications
The usability and pricing of SAAS software are completely different from traditional software. Software normally has to be installed on the computer in order to be used, but SAAS software can be used wherever the user wishes and on whichever device is most convenient for him/her.
SAAS market size
The SAAS market is growing rapidly well with an expected rate of 5.49% and is projected to reach $167 Billion by 2027 as per Stastita. Increasing demand and ease of usability are the key factors benefiting this growth.
At the time of Covid when all offices were shut down there was an increase in demand over the internet because the traditional buy of software was difficult to install on a computer.
As per the Mckinsey report, the global SAAS market is currently worth $3 Trillion dollars and their estimates indicate that it could surge to $10 trillion dollars by 2030.
SAAS is very easy and cheap to use compared to PAAS and IAAS.
Due to covid, most tech companies have adopted a “work from home” routine to not spread the virus. This has increased the demand for SAAS-based video conferencing tools, and various other SAAS software.
With the above information, it is set to clear that SAAS is overtaking traditional software services more rapidly.
SAAS Top players
SAP SAAS comes with a monthly or yearly subscription for usage. SAP has a wide range of SAAS products like
- SAP Fieldglass
- SAP Concur
- SAP Cloud for customer
- SAP Hana Cloud
SAP reported its Q3 earnings with revenue growth of 6%, 22% growth was recorded with SAAS and PAAS.
Adobe creative cloud
Adobe has transitioned its traditional license-based company to a cloud-based company. Adobe creative cloud SAAS platform was originally launched in April 2012. Photoshop is the most popular photo editing software which has huge competition with other low-cost editing software. But the usage of Photoshop still remains the same.
- Adobe Photoshop
- Acrobat Pro
- Premiere Pro
- Adobe XD
Adobe creative cloud is also a SAAS subscription model. Adobe reported a whopping growth of 10% year on year in its Q4 quarter. Its total revenue stood at 4.53 billion.
Microsoft is one of the Pioneer in SAAS products and one of its most used SAAS products is Microsoft 365 in windows.
Microsoft is also one of the SAAS products that included numerous sub-products. In fact, the stock has performed well compared with other tech companies that lost huge share prices.
SAAS is the future and present. It is evident that in the future tech gonna change the entire current lifestyle with new-age inventions and innovations. Till now many companies are still following the work from culture and for that, the only solution is to use SAAS products. As per the Gartner report Worldwide cloud, user-end spending could go up to $600 billion in 2023 which is a growth of 20.7%. SAAS stocks are really perfoming well to the normal traditional software installed comapnies for their demand and adoptability.