Software as a service (SaaS) is a software delivery model, also known as on-demand software or web based software. It includes software and its related data that are accommodated centrally & accessed via client which is generally a web browser over the internet. SaaS has many components such as infrastructure as a service, anti-virus, software layer, server deployment, patching, managed operating system and server monitoring etc. Hotmail, Gmail and Mikogo are some of the examples of SaaS. The key characteristics associated are open integration protocols, accelerated feature delivery, better access, easy customization & configuration, collaborative functionality, operational performance and multitenant architecture.
According to study, “Global Software-as-a-Service (SaaS) Market (2018-2023)” some of the major companies that are currently working in the global Software-as-a-Service (SaaS) market are Symantec Corporation, Netsuite Inc., CISCO Systems Inc., Automatic Data Processing (ADP) LLC, Intuit Inc., Service Now, Oracle Corporation, IBM Corporation, Anaplan Inc., Okta Inc., Host Analytics Inc., Concur Technologies, Fujitsu Ltd., Microsoft Corporation, Workday Inc., Workwise Inc., Citrix Systems Inc., The Sage Group Inc., Infor Inc., Adobe Systems Inc., Zendesk Inc., Amazon.com Inc., Salesforce.com Inc., HP, SAP SE, Google Inc. These companies provide endless marketing, maintenance and sales services to the customers. In the upcoming years, all these key players are trying to service the hybrid cloud model.
On the basis of deployment model, the software as a service market is segmented into private cloud, public cloud and hybrid cloud. On the basis of vertical, the market is segmented into information technology (IT) & telecommunication, travel, education, banking financial services and insurance (BFSI), retail, hospitality, discrete manufacturing, utilities (oil and gas, energy and power, water management) healthcare and others. On the basis of the software, market is segmented into payroll software, service desk management, database management software, computer designing software, virtualization software, development software, messaging software, collaboration software, talent acquisition accounting and antivirus software and invoicing software etc. On the basis of tools, the market is segmented into qTest, PractiTest and QMetry and many others.
On the basis of application, the market is segmented into customer relationship management (CRM), supply chain management (SCM), enterprise resource planning (ERP) and human resource management (HRM) and others (web conferencing platforms). In addition, on the basis of organization market is segmented into large enterprises and small & medium enterprises (SMEs).
Some of the key advantages are rapid scalability, automatic update, high bandwidth network, fewer up-front costs, faster implementation, accessibility & persistence, improve availability, system maintenance (updates, security and backup), easy to use, accessible from anywhere (with an internet connection) and vendor accountability. Some of the drawbacks associated are reliability, performance, security, privacy, robustness and compliance.
The market of SaaS is generally compelled by increasing penetration of broadband internet access. Some of the other driving factors are the increasing popularity of web development as a practice, growing use of web based user interfaces, standardization of web page technologies (Java Script, HTML and CSS), rising web application frameworks (PHP) and wide acceptance of lightweight integration protocols (SOAP & REST). However the market is also impacted by factors such as lack of integration, data security issues and the need of constant & high speed internet connectivity etc.
North America holds the largest market share of SaaS market in world owing to the wide use of SaaS-based solutions for instance office suites, human capital management (HCM), emails and web conferencing. Additionally Asia-Pacific is the second largest market and it is expected that the SaaS market to grow at a CAGR of 21.2 % over the forecast period.
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Ankur Gupta, Head Marketing & Communications