May 01, 2018
WELLESLEY, Mass., May 01, 2018 – An expanding SaaS ecosystem and a growing demand among companies to reduce their IT infrastructure are among key drivers of the SaaS market. In a new report, Software as a Service Market: Technologies and Global Markets Through 2022, BCC Research predicted that the industry would be valued at $44.4 billion in 2017. Meanwhile, it is estimated to be worth $94.9 billion by 2022, indicating a compound annual growth rate (CAGR) of 16.4%.
A growing number of enterprises are adopting SaaS, along with other cloud-based services due to easy availability of bandwidth and internet, cost effectiveness, scalability and flexibility. In the small businesses (SMBs) space, low-budget organizations can implement new technologies faster than larger organizations, which offers a competitive advantage. Cloud computing solutions provide improved usability, mobility and service arrangements that allow smaller firms to deploy and develop return on investment from the cloud quickly. SaaS-based applications are helping SMBs to meet regulatory requirements and improve security, while also reducing overhead costs and capital expenditures.
Changing regulations, economic uncertainty, competitive rivalry and the increasing adoption of mobile, applications and internet usage have compelled enterprises to seek more flexible and scalable solutions to manage and run their operations efficiently and cost-effectively. SaaS and cloud-enabled services have become critical to support global business operations within dynamic market conditions. Also, large enterprises increasingly are using SaaS-based business applications such as BI and analytics, ERP, CRM, HCM, ECM and SCM to enhance their business operations by reducing cost and increasing profitability.
“Many enterprises have witnessed a considerable spending reduction due to various licenses and services adopting cloud services, compared to legacy systems,” the report notes. “In many cases, the cost of implementing SaaS-based business applications or software is lower than the license renewal of their legacy applications. Enterprises who have adopted SaaS and other cloud-based services have gained a competitive advantage by reducing complexity and increasing business agility. Even for SMBs and independent software vendors (ISVs), business agility has been the main reason for adopting cloud-based applications for their business continuity.”
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Software as a Service Market: Technologies and Global Markets Through 2022( IFT160A )
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