Since 2019, software as a service (SaaS) is the largest and fastest-growing industry sector, with Gartner forecasting $104.7 billion in growth for the industry in 2020. Businesses are now spending around 50% more on cloud services than they were only two years ago. This also means more dependency on cloud services. One of the most in-demand business prospects is a software as a service (SaaS). In this fast-paced field, i.e., the SaaS sector, anyone seeking their next service career or even starting their firm may gain vital skills and expertise. So let’s see how is SAAS technology shaping the landscape for Indian Startups?
SaaS Technology Sector Worldwide
Even though the pandemic harmed global businesses and economies in past years, cloud usage continues to speed up. The future of SaaS is unquestionably the most promising of all cloud options. After all, as more firms utilize SaaS solutions for different business operations, they are taking it far beyond the conventional SaaS domains of traditional engineering and sales applications. Thus, it’s safe to say that the total growth of the SaaS sector will stay stable over the next few years.
The quantity and variety of SaaS customers have grown in recent years. Initially touted as a remedy for small firms and companies, SaaS is increasingly being used by companies of all sizes. This is primarily due to SaaS being a simple, cost-effective tool to facilitate agility and digitization.
It gets easier for enterprises and software providers to supply the essential features and functionality to end-users, thanks to SaaS technology. Thus SaaS is contributing to the acceptance of SaaS solutions over on-premise software applications.
Read More: https://smeventure.com/saas-integration-can-change-small-business/
SaaS startups in India
There are over 1,000 SaaS businesses in India right now, with ten of them being unicorns (those valued at $1 billion or more). According to a McKinsey SaaS report, their combined yearly income is roughly $3 billion. By 2030, it might be worth $60 billion to $70 billion, accounting for 4 to 6% of the worldwide 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 research, space investments surged by 170 per cent in 2020 and predicted to reach $4.5 billion in 2021.
Over the next five years, Indian SaaS startups are predicted to expand at a 30% compound annual growth rate (CAGR) and increase their market share to 8%–9% by 2025.
Compared to one in 2018, India today boasts 13 SaaS unicorns. Former SaaS employees have founded 250 new businesses, employing around 5,000 individuals. After the United States and China, India has the world’s third-largest SaaS ecosystem.
The software is leased to clients on a subscription basis and hosted in the cloud in the SaaS model. It is centralized and handled digitally, eliminating the need for human resources, saving money and eliminating the need for a full-fledged technological crew.
Top SaaS companies in India
India now has around 15,650 SaaS startups. Some of the top SaaS companies in India are:
Unacademy is a mobile and SaaS-based platform that offers multidisciplinary learning and exam prep. It provides students with organized live classes and allows instructors to develop video courses on its system. It provides exam preparation, academic subjects, language instruction, and other services.
Razorpay For enterprises, payment processing solutions are available in the form of Razorpay for payment gateways and link-based payment solutions, RazorpayX for expediting and automating banking activities, and Razorpay Capital for financial loans, corporate credit cards.
ThoughtSpot is a company that provides businesses with an AI-based search-driven analytics platform. Using a browser-based search interface, the application analyses corporate data and generates reports and dashboards. It integrates data from data warehouses, cloud apps, and spreadsheets, among other sources, and scales to billions of rows.
Druva is a supplier of cloud data backup and protection solutions. It offers a comprehensive set of endpoint data management solutions for companies. Its flagship solution provides backup, IT-managed file sharing, data loss prevention, data deduplication, and comprehensive analytics to an enterprise mobile workforce.
Urban Company is an app-based platform that offers a variety of local services. Users may browse and schedule a variety of services such as beauty, house repairs, yoga instruction, housekeeping, pest control, and more, using their app.
Postman is an API developer collaboration tool. The software includes features like automated testing, version management, design and mocking, and more. Constant monitoring, documenting, product management, app development, exploratory testing, and other functions are included in the package.
In 2020, India invested around $1.5 billion in SaaS, a four-fold increase over the previous two years. Postman, Zenoti, Innovaccer, Highradius, Chargebee, and Browserstack were among the six new unicorns to emerge in the industry.
SaaSBOOMi
SaaSBOOMi is a SaaS Creators and Product Builders community that is influencing India’s SaaS market. It’s an unofficial club of SaaS startups made in the summer of 2015 to connect and learn from one another. Since then, India’s SaaS market has expanded to over $1.5 billion in yearly sales, with over 800 enterprises actively participating. Its function is to empower SaaS founders to benefit from each other’s experiences at all stages of their businesses, from zero to $100 million in annual revenue and beyond.
SaaSBOOMi Annual 2021 OnAir’s aim is to assist Indian SaaS innovators in reimagining their vision, strategy, and execution. The conference will also focus on building long-lasting organizations and coming out stronger in the post-COVID age.
According to research by SaaSBooMi, McKinsey, and NASSCOM report, India has almost 1000 financed SaaS startups, including 10 unicorns that produce $2-$3 billion in sales and employ roughly 40,000 people.
How big is the SaaS technology Market?
The United States dominates the worldwide SaaS market, with the rest of the world trailing far behind. APAC (Asia-Pacific) is the fastest-growing SaaS region. Although it is unlikely to overtake the developed market in the next five to ten years, investors are attracted to the developing market’s vast array of prospects. Because SaaS adoption in the APAC area is slow, most products must rely on the foreign market to acquire traction.
The Latin American SaaS industry is also rapidly expanding, particularly in the e-commerce sector. After the United States, Europe has a strong SaaS market. European businesses are more likely to go worldwide and concentrate on monetization in the early phases of their development.
Large corporations like Adobe Inc., Microsoft Corp., Oracle Corp., Salesforce.com Inc., and SAP SE collectively control more than half of the market. To put things in perspective, in 2015, the top 11 SaaS businesses had a combined market share of less than 50% and neither of those had more than 11%.
This trend is unlikely to alter, given these behemoths are growing at a considerably faster rate than the market average.
Vertical vs Horizontal SaaS
Horizontal SaaS enterprises serve a broad market, offering solutions to a diverse range of clients. Slack and Salesforce are two examples.
Vertical SaaS firms specialize in a certain sector and customize their services to the demands of a specific type of customer. Veeva, HotSchedules are two examples.
If you look at top SaaS firms, you could believe that horizontal services are the most popular and hence the preferable option. But let bright lights not fool you. Going vertical when starting a SaaS firm would eliminate a lot of suffering if you aren’t a behemoth like Microsoft. It makes acquiring customers considerably easier, and competition is likely to decline. For years, vertical-specific technology has been a hot topic in the business, and it continues to expand and attract investors. Banking, finance, communication, media, administration, and medical are the most important vertical SaaS markets.
Future of SaaS technology
Data-driven techniques are now completely driving the development of SaaS technology applied business solutions. The more businesses incorporate data analytics and smart data into the development of service-based solutions, the more futuristic and realistic cloud solutions will emerge.
SaaS solutions are still inexpensive across sectors, besides being incredibly handy. The AI plugin just adds to their invincibility when it comes to developing foreseen solutions based on intelligent data.
According to a paper titled “Shaping India’s SaaS Landscape,” the SaaS technology sector in India has the potential to be worth $1 trillion and predicted to employ over 500,000 people by 2030. The research says the pandemic scenario has compelled digitalization, resulting in the expansion of the SaaS business, which is expected to reach $1 trillion in revenue and create 5 lakh employment opportunities by 2030. According to a survey released by NASSCOM, SaaSBooMi, and Mckinsey, the worldwide SaaS industry is estimated to reach $500 billion worth market size in sales by 2025.
The Indian SaaS technology landscape is efficiently reacting to the expansion and needs of the global market, as seen by the fast increase in digitalization. It is critical to invest in the SaaS business, particularly when the globe is experiencing a worldwide health crisis. This might help generate income, improve the IT sector, and create jobs. In today’s workplace, this is the requirement for an hour.