Could A SaaS Company Ever Be The Largest Company In The World?
Software as a service companies (SaaS) are part of an ever-growing industry that can take over the global market. Today, the question of how much market share is available is still unanswered but one thing is clear, there is potential to be capitalized on. As for now, it brings a lot of revenue, with major SaaS companies comparable to some of the biggest retail companies. Follow this article to see if a SaaS company could ever be the largest one in the world?
Largest companies in the world currently
Industries are changing every day, and there is always a fight for the top position. Right now it seems that software as a service is making a run for it, and it might just grab the title. The graph below, by CompareTheMarket, shows the top retail companies globally. Currently, Salesforce is the largest SaaS company, dominating the market share, and would be 4th on this list. Here are some facts about how SaaS companies can grow globally as there is revenue and market share that can be capitalized on.
Image source: www.comparethemarket.com.au
Cloud spendings are expected to rise by 6.3% every year in the future and the growth for software as a service looks the brightest from all options. The SaaS industry will remain consistent in the following years because a lot of companies are opting for solutions that include these services for a lot of business functions. This means that core engineering and sales apps are not the only ones using them anymore and more and more industries will thrive towards it.
SaaS vs other cloud services
Since it is the first cloud service to truly take off, it will dominate the market in the following years especially when it comes to revenue since it is expected that it will generate almost $141 billion in the year 2022. However, it is slowing down giving space to other cloud services to also go for the top like IaaS and PaaS that will grow faster.
How popular are they?
Since a lot of software services operate on a subscription-basis pricing model, a lot of companies are opting for the SaaS consumption model. This means that the growth of SaaS in the future is pretty much guaranteed, although the organizations dominating the software market will maintain their position for quite a few years. But it can still go in the favor of the SaaS industry in a few years.
Adoption and workforce size
The growth of SaaS can also be measured by looking at how well it is adopted, meaning how many customers are using it and is it going up or down from that number. In recent years, there has been a rapid increase in SaaS product use. A lot of companies are finding this solution affordable and palatable because it empowers digital transformation. Here are some stats:
– In 2021, 73% of organisations will use all or mostly SaaS solutions.
– 85% of small companies are investing in these options
– 93% of CIOs have already, or planning to adopt SaaS solutions
There, now you see how much the SaaS industry has grown. As shown in the article, a company like this might just take over the market entirely because it is innovative and useful. A lot of companies are not satisfied with subscription-based software and are opting for SaaS. Try them out and see for yourself!