![]() SaaS acquisitions feel as if they’re happening daily, as bigger companies look for the next big SaaS thing. Of course, SaaS growth doesn’t stop with revenue projections. Organizations dominating the enterprise software space-IBM, Oracle, Microsoft, and SAP-will likely maintain their market share for enterprise software products, as a growing number of customers can take advantage of the same product capabilities with the feasible subscription-based pricing model. This means strong potential for growth of SaaS products in the coming years as their Total Cost of Ownership (TCO) matches that of the on-premise software deployment models. This demand for subscription-based pricing models, however, is spurring legacy companies to rapidly migrate their software solutions to a SaaS consumption model. It’s important to realize, however, that a significant portion of their revenue comes from selling on-premises software-so while they are huge tech companies, calling them SaaS providers is a misnomer. Notable industry giants that are missing from this list include Microsoft and Oracle. Similarly, Shopify evaluation in early 2020 was $52.1 billion compared to more than $185 billion today-that’s 225% growth in 20 months!.Salesforce alone grew from $161 billion in January 2020 to $251 billion in September 2021.In the first part of 2021, the 10 largest publicly owned SaaS companies per market cap were:Ĭompared to similar numbers from 2020, the growth these companies have experienced is astronomical. We can also look at SaaS success in terms of the companies that make those products. (Understand SaaS fully in our SaaS vs PaaS vs IaaS explainer. The SaaS growth rate, however, is beginning to slow, especially compared to other cloud services like platform as a service (PaaS) and infrastructure as a service (IaaS), both of which are projected to double from just 2020. Gartner estimates that SaaS will continue to maintain this dominance well into 2022: ![]() After all, the overall growth of the SaaS industry will remain consistent through these years as more companies adopt SaaS solutions for a variety of business functions, extending far beyond the initial SaaS territories of core engineering and sales applications.Īs the first cloud service to truly take off, SaaS has a significant lead on other cloud services. “This is especially true for use cases such as collaboration, remote work and new digital services to support a hybrid workforce.” Cloud growth: SaaS vs other cloud servicesĪmong cloud options, the outlook for SaaS is arguably the brightest. “The economic, organizational and societal impact of the pandemic will continue to serve as a catalyst for digital innovation and adoption of cloud services,” said Henrique Cecci, senior research director at Gartner. In fact, Gartner forecasts end-user spending on public cloud services to reach $396 billion in 2021-and grow 21.7% to reach $482 billion in 2022. “Organizations are advancing their timelines on digital business initiatives and moving rapidly to the cloud in an effort to modernize environments, improve system reliability, support hybrid work models and address other new realities compelled by the pandemic,” said Brandon Medford, senior principal analyst at Gartner ![]() SaaS spending vs overall IT spendingĪlthough global businesses and economies suffered this past year due to the pandemic, cloud growth continued to boom. In this article, we’ve put together some of the top trends and growth statistics surrounding SaaS solutions for 2022. Of course, with the pandemic necessitating more remote work than ever, the need for SaaS will only increase. Working on a subscription basis and centrally located on a remote cloud network, software as a service (SaaS) models are becoming the go-to for many organizations for a variety of reasons, including flexibility and affordability. SaaS solutions are among the fastest-growing segments in the IT industry. Automated Mainframe Intelligence (BMC AMI).Control-M Application Workflow Orchestration.Accelerate With a Self-Managing Mainframe.Apply Artificial Intelligence to IT (AIOps).
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