Is SaaS technology shaping the startup landscape?

Since the beginning of 2019 software as a service (SaaS) can be described as the biggest and fastest-growing sector in the world in the world, with Gartner anticipating $104.7 billion of growth for the sector in 2020. Companies are currently spending approximately 50 percent more on cloud-based services than they did just two years back. This is also a sign of increased dependence on cloud-based services. A major source of sought-after opportunities for business is software as service (SaaS). In this fast-paced industry, i.e., the SaaS sector, anyone looking for their next job in the field or even setting up their own company can gain essential knowledge and skills. Let's look at how SAAS technology changing the landscape to Indian Startups?
SaaS Technology Sector Worldwide
While the pandemic was a major threat to the economies and businesses of the world in the past cloud-based services continue to grow at a rapid pace. Future of SaaS is without doubt the most promising of cloud alternatives. In the end, as increasing companies utilize SaaS solutions for various business functions, they're going beyond the typical SaaS areas of traditional sales and engineering applications. So, it's safe claim that the expansion of the SaaS sector will remain steady over the next couple of years.
The number and range of SaaS customers has increased over the last few years. It was initially touted as a solution for small businesses and corporations, SaaS is increasingly being utilized by businesses regardless of size. This is due in large part the fact that SaaS being a straightforward, affordable tool that can help with the speed of digitization and agility.
It becomes easier for businesses and software vendors to offer the necessary features and functions for users, due the SaaS technology. This is why SaaS can contribute to the increasing acceptance for SaaS solutions over on-premise software solutions.
SaaS companies in India
There are over 1000 SaaS companies in India at present and ten of them are unicorns (those valued at more than $1 billion). According to an McKinsey SaaS analysis, their annual revenue is around $3 billion. In 2030, they could be worth between $60 billion and $70 billion. This is equivalent to 4 to 6 percent of the world SaaS industry.
According to a new analysis by Bain & Company, Indian Software-as-a-Service (SaaS) firms are on track to generate $30 billion in sales by 2025, capturing 8% to 9% of the worldwide SaaS market size. According to the study that space investments grew by 170 percent in 2020 and are expected to be at $4.5 billion by 2021.
In the coming 5 years Indian SaaS startup companies can be expected to grow at a rate of 30% CAGR. (CAGR) and grow their market share to 8-9 percent in 2025.
Comparatively to one in the year 2018 India has today thirteen SaaS unicorns. In the past, former SaaS employees have created 250 new companies with a workforce of 5,000. Following India, the United States and China, India is the third largest SaaS ecosystem.
The software is offered to clients on a per-month basis, and is hosted in the cloud under the SaaS model. It is managed centrally and electronically, removing the requirement of human labor, thereby saving money as well as making it unnecessary to have a full-time technological staff.
Leading SaaS businesses in India
India currently has about 15650 SaaS-based startups. The top SaaS firms in India include:
Unacademy It is an online platform that is mobile and SaaS-based that provides multidisciplinary learning as well as exam preparation. Students can take advantage of scheduled live classes and permits instructors to create video-based courses using its platform. It offers examination preparation and academic subjects, as well as language instruction, as well as other services.
Razorpay for businesses Payment processing solutions are offered as Razorpay as payment gateways, links-based solution for payment, RazorpayX which automatizes and speeds up banking processes and Razorpay Capital for loans to finance as well as corporate credit cards.
ThoughtSpot It is an organization that supplies companies with an AI-powered analytics platform that is driven by search. With a web-based search interface that analyzes corporate data, and produces Dashboards and reports. It incorporates data from spreadsheets, cloud applications and in addition to other sources, and scales up to trillions of rows.
Druva is a provider of cloud backup and security solutions. It provides a broad range of solutions for managing data on endpoints for enterprises. The most popular solution is backup, managed file sharing that is IT-controlled and data loss prevention data deduplication and extensive analytics for an enterprise-wide mobile workforce.
Urban Company is an app-based platform that provides various local services. Users can browse and book various services including beauty, home repairs, yoga classes cleaning, pest control, housekeeping and much more with their application.
Postman is an API tool for collaboration among developers. The application includes features such as automated testing as well as managing versions design and mocking and much more. Continuous monitoring, documentation the product's management, app design, exploratory tests as well as other functions are all included in the software.
In the year 2020, India invested around $1.5 billion in SaaS which is a fourfold increase from the past two years. Postman, Zenoti, Innovaccer, Highradius, Chargebee, and Browserstack were among the six unicorns that came out of the SaaS industry.
SaaSBOOMi
SaaSBOOMi is an online SaaS Creators and Builders community that is shaping the Indian SaaS market. It's an informal group of SaaS companies that formed by the end of the year in order to meet and learn from each other. Since the time the India SaaS market has grown to more than $1.5 billion in annual sales, with more than 800 businesses actively involved. Its purpose is to allow SaaS founders to learn from one another's experiences in all phases of their business starting from zero to 100 million annually in revenues and above.
SaaSBOOMi The Annual OnAir's goal is to help Indian SaaS pioneers with reframing their vision, strategy and implementation. It will be focused on creating long-lasting companies and growing stronger in the post-COVID era.
Based on research by SaaSBooMi, McKinsey, and NASSCOM report, India has almost 1000 finance-backed SaaS startups with 10 unicorns, which have sales of between $2-$3 billion and employ 40,000 employees.
What is the size of the SaaS technology Market?
The United States dominates the worldwide SaaS market while other countries in the dust. APAC (Asia-Pacific) is among the most rapidly growing SaaS region. Although it's unlikely to surpass the developed market over the coming five to ten months, investment firms are drawn by the market's huge variety of opportunities. Because SaaS acceptance in the APAC region is slow, the majority of applications must depend on foreign markets to gain traction.
It is believed that the Latin American SaaS industry is growing at a rapid rate, particularly in the field of e-commerce. Following that of the United States, Europe has an incredibly strong SaaS market. European companies are more likely to venture to the world and focus on monetization in the beginning stages of their growth.
Large companies like Adobe Inc., Microsoft Corp., Oracle Corp., Salesforce.com Inc. along with SAP SE collectively control more than half the market. To put things into perspective in 2015 the best eleven SaaS companies had a market share under 50%, and none of them did more than eleven percent.
This pattern is not likely to change as the size of these beasts is expanding at a much higher rate than market average.
Vertical vs Horizontal SaaS
Horizontal SaaS companies serve a wide market, providing solutions to a variety of customers. Slack and Salesforce are two examples.
Vertical SaaS firms are specialized in a specific area and can tailor their services according to the requirements of a particular kind of client. Veeva, HotSchedules are two examples.
If you take a look at the top SaaS firms, you may think the horizontal service is most popular and thus the most preferred alternative. Don't let bright lights blind you. If you are starting a vertical SaaS company can alleviate some of the pain even if you're not a giant like Microsoft. It makes getting customers simpler and the competition is expected to fall. Over the years, technology that is specific to vertical markets was a hot issue in the industry and is continuing to grow and attract investors. Communication, banking, finance administration, media and medical are among the most significant sectors that are vertical SaaS markets.
The future technology SaaS technology
Data-driven technologies are currently driving the evolution of SaaS technology-based for business applications. As more companies incorporate smart data and data analytics into the creation of solutions based on services that are more innovative and real-world cloud solutions will be developed.
SaaS products are cheap across all sectors, and are extremely useful. The AI plugin is just a boost to their supreme power when it comes down to creating planned solutions that are based on intelligent data.
According to a research paper entitled "Shaping India's SaaS Landscape ," the SaaS technology industry in India could be valued at $1 trillion and is predicted to employ 500,000 people by the year 2030. The study claims that the pandemic situation has driven digitalization, which has led to the growth of the SaaS industry that is expected to grow to the level of $1 trillion revenue, and provide 5 lakh job opportunities in 2030. According to a report published from NASSCOM, SaaSBooMi, and Mckinsey the global SaaS industry is expected to be worth $500 billion of sales in 2025.
It is evident that the Indian SaaS technology market is swiftly responding to the growing needs and expansion that the world market which is evident in the rapid growth in digitization. It is crucial that you invest into the SaaS business, especially when the world is experiencing the world's health crisis. It could generate revenue and enhance your IT industry, as well as also create jobs. In the workplace of today it is the norm of an hour.


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