What is Software as a Service - SaaS?
SaaS, short for Software as a Service, is a game-changing approach to accessing and using applications.
With SaaS, you can subscribe to software services and access them online without dealing with any complicated software installation procedures.
Unlike traditional applications that require servers to function, SaaS is hosted on the cloud, making it easily accessible from any location.
So, if you want to simplify your work processes, increase productivity, and streamline your business, SaaS is the way to go.
Popular SaaS Categories to Boost Productivity
Since there are many possibilities to use SaaS, it is good to know the categories of SaaS to apply.
So, here are the famous five:
- 1- Project Management SaaS: Monday, Trello
- 2- Workflow Automation SaaS: Zapier, IFTTT
- 3- Web Conferencing SaaS: Zoom, Slack
- 4- Forms SaaS: SurveyMonkey, MS Forms
- 5- Email Marketing Automation SaaS: Mailchimp, Customer.io
Some Famous SaaS Companies
SaaS is nearer than you think. The examples we share here are SaaS, and it has common purposes, including uniting, making something more manageable, and connecting.
- Zoom: Zoom unites users around the world.
- Canva: It is a tool to freely create content for the platforms you belong to and present distinct designs.
- Box: No matter the distance, you can use Box to manage your business and its necessities like documentation, marketing, selling, and financing.
- Netflix: By paying monthly or annually, you get more than what you demand, like movies, documentaries, short clips, etc.
- Salesforce: As a CRM tool, Salesforce must be mentioned because it is the market leader in public SaaS. Arranging, analyzing, and storing all that you have about your business can be controlled with Salesforce.
- Slack: It is a cloud-based tool, and it provides a platform to connect with co-workers. Slack has made organizing and managing communication through the channels related to topics easier.
General SaaS Statistics You Should Know
You may guess what we are trying to say when we talk about the importance and the statistics of SaaS.
➤ The SaaS market is growing! According to a Statista report, it is estimated that by 2027, the SaaS market volume will reach US$344.00bn with an annual growth rate of 7.89% from 2023 to 2027.
➤ Grand View Research's analysis on market size, shares, and trends projects a compound annual growth rate (CAGR) of 13.7% for the SaaS market from 2023 to 2030.
➤ Small businesses are interested in SaaS, and nearly 78% of them already deal with SaaS options.
➤ Also, it seems that these high prices will not stop because the growth of the SaaS market is 18% each year.
➤ Today, the cloud-based business has gained so much importance that 84% of enterprises work with a multi-cloud strategy to manage their work more appropriately and better than the current conditions. That is how they can organize with the help of SaaS.
➤ Companies that are aware of the impact of SaaS generally use more SaaS than regular ones. Therefore, an average of 34 SaaS apps are used by these companies.
➤ Moreover, around 2026 we will come across $1,025 billion in the global computing market on the predictions of the researchers.
The Most Interesting Statistics about SaaS
It is obvious that SaaS has so much value because it provides many advantages for the companies that use SaaS.
Here are some more SaaS statistics:
➤ Firstly, with the increasing significance of SaaS, it has become the most important tech in business success.
Another crucial point to focus on is the dispersion of SaaS applications.
SaaS applications are mostly assigned based on:
➤ Generally, most business owners -around 89%- highly care about personalization and choose tools that allow for personalization.
➤ Agility is another essential detail of SaaS, so 39% of business owners prefer SaaS since they see hope in enhancing their businesses.
➤ When we change our perspectives to SaaS companies, they mostly -33% of them- tend to offer extra services since the rivalry is getting worse day by day.
➤ Considering the financial part of Saas, the most common free trial period is 30 days.
➤ Among countries, the most mature SaaS market in terms of adoption belongs to North America.
Along with North America, Asia Pacific sees the good side and has the highest growth rate in the SaaS market .
The Reasons Why People Use SaaS with Statistics
➤ Nearly 40% of companies use SaaS almost entirely, and they are mostly satisfied doing so.
➤ One of the most important reasons is that 70% of CIOs prefer using SaaS for quickness and scalability.
➤ SaaS has become accessible, and in a way, people are attracted to it because it is beyond the limits. With the help of SaaS, all boundaries and distances are destroyed.
➤ Flexibility is a vital detail in business, so 37% of companies apply SaaS for it to improve their profession.
➤ Technical professionals use SaaS solutions by 94% because SaaS gains more importance and demand.
➤ Even around 2025, 80% of businesses will organize themselves to change their systems to SaaS with the evolving world.
There are various pricing methods in the SaaS market, so sometimes, it has become more flexible as another stunning detail for those questioning SaaS.
When these all are considered, SaaS must seem appealing and logical for your business.
SaaS Churn Statistics
Before explaining the stats about SaaS churn, we need to explain what churn means.
Churn occurs when the service is delayed, has a problem in working, or stops working. That is, if you experience churn in your business, it is no good sign.
As a business, if your churn rate is high, then it is also bad for your business’s future, and you should try hard to make things work and reduce the rate.
There are some reasons why churn rates can get high like:
- budget problem
- Improper customer service
- Discovering a new supplier.
➤ SaaS companies’ medium annual revenue rate is 13.2%.
➤ It would be best to be careful about churn because US businesses spend $136 billion a year on avoidable customer churn.
➤ A SaaS company’s net revenue churn must not be above 2%.
SaaS Statistics Based on Location
Of course, not all companies are aware of the vitality of SaaS, so the distribution of SaaS companies is not equal.
➤ Among the outstanding SaaS users, we have encountered the United States of America since 80% of the top 100 SaaS companies settled in the USA.
➤ Also, this rate refers to the fact that the US carries all before with over 8x more SaaS companies than the other countries.
➤ According to GetLatka’s statistics about top SaaS countries, the US has 10.2K companies and 15.5 billion customers.
➤ The US is followed by the United Kingdom with 1.6K companies and 293.6M customers.
➤ Canada, Germany, and India are the three follower countries with relatively high companies, revenues, and customer rates.
➤ By 2025, Germany is believed to have the largest and most significant increase from €6.85 billion in 2020 to €16.3 billion among all SaaS companies.
➤ On the Asia continent, India stands out with 983 companies and 2 billion customers.
➤ Among the South American nations, Brazil gives utmost importance to SaaS as a startup model.
➤ Just like the UK, China, India, and Brazil, SaaS industries are supposed to grow 2x from 2020 to 2025.
➤ To focus on a specific area in the USA, Silicon Valley is where two-thirds of the top 100 SaaS companies are located.
➤ California, Washington, New York, Massachusetts, and Utah are the first five top SaaS companies.
➤ To use a SaaS service in China, it is a must that the server is located in China. Otherwise, it is illegal to maintain any SaaS service in China.
SaaS Usage Statistics
We have mentioned why people use SaaS with many significant points and statistics.
However, it can be good to take a look at the statistics of the people who use SaaS and the outcomes of it.
➤ Adapting SaaS is quite critical when we regard the use of SaaS, and therefore 73% of businesses arrange themselves to correct their present use of the cloud.
➤ By 2025, experts believe that the cloud will be the only source for 50% of enterprise software.
➤ Turning to the statistics about SaaS spending, it was seen that the typical annualized increase in SaaS spending varies by company size and stands at 58% on average in 2023.
Flexera suggests that because of COVID-19, more spending will be done on cloud usage than planned.
Also, from the resources of Flexera, the growth rate in cloud usage and spending will increase simultaneously.
There are a few points that can challenge using the public cloud for business, like:
SaaS Business Statistics
SaaS is a game-changer. The Cloud computing market has a significant effect on the global business world.
Of course, SaaS was not alone while climbing the ladder because COVID-19, which harmed nearly all the good things, helped SaaS rise and shine.
➤ Only 39% of business owners claimed either a small negative impact or a positive result on the business budget.
➤ SaaS is also interesting since the new visitors are from free trials- 84% of new SaaS customers.
The distribution for the public cloud for some of the applications is as above:
SaaS Apps by Categories
SaaS apps can be observed in different categories. Therefore, we chose some apps and examined them with their specific statistics.
Let’s have a quick look!
Business Operations SaaS Statistics
Zoom
As a public company founded by Eric Yuan, Zoom achieved great success.
Though at first, its impact can be underestimated, with the coming of the pandemic, Zoom has become one of the most popular SaaS and the fastest-growing apps.
➤ Zoom has never stepped back since its foundation, and it had a remarkable increase year-on-year when it generated $4.39 billion in revenue in 2022.
Slack
➤ Slack must sound safe and be good to use that more than 600.000 organizations choose to use it.
Though its loss was also high when the revenue was considered, $400.6 million was never easy to reach on 31st January 2019.
Also, Slack has been one of the preferable choices for communicating with co-workers, affecting the productivity of the working area.
➤ Slack is a platform helping the teams feel more connected -84%-, believe in improvement -91%-, and trust each other for work -75%-.
Sales SaaS Statistics
Salesforce
Salesforce has found a remarkable place among other SaaS companies.
➤ According to the sources, Salesforce starts worth $2.7 billion and reaches $5.19 billion in 2021 in terms of Salesforce Sales Cloud. In addition, overall revenue reached $31.4 billion in 2022.
➤ As stated in 123 Form Builder’s Salesforce statistics, commanding a 23.8% share, Salesforce is the leading player in the CRM software market. By 2023, the company has grown its workforce to 79,390 employees.
➤ Notably, Salesforce's revenue for 2023 totaled approximately $31.35 billion, with the Americas contributing significantly at $21.25 billion.
HubSpot
HubSpot is a SaaS tool to help you grow your business piece by piece with advanced methods and technology.
➤ HubSpot's total revenue in 2022 was $469.7 million, up 27% compared to Q4'21.
➤ With over 135.000 customers across more than 120 countries, HubSpot is an effective tool with many integrations attracting, engaging, and delighting.
Customer Support SaaS Statistics
Intercom
Intercom is a SaaS chat tool to connect you with the customers as best as it can.
➤ Intercom had a revenue of around $250 million in 2022, and its valuation was around $1.30 billion.
However, with over 600 million users and more than 500 million messages, Intercom can be given as a successful SaaS example.
Zendesk
Working for the best customer service, Zendesk has cared about innovation, flexibility, and growth since 2017.
➤ In 2021, Zendesk had 160.000 paid customers and $1.338 billion in revenue.
➤ However, when we turn to Zendesk’s own published data, it says that they had 1.1 billion customers in 2023
Engineering SaaS Statistics
GitHub
Building and hosting the codes, GitHub is the leader in the industry.
➤ As of 2023, it was claimed that they have 100 million users, which is getting higher as time goes on.
With the choice of over 73 million developers and 4 million organizations, GitHub increases its aim and stands behind what it claims.
Twilio
Twilio is a valuable step in uniting developers and businesses to communicate through message, voice, and video, and they somehow connect for their software.
➤ Twilio is a supported platform hosting over 5 million developers and 150.000 companies.
➤ Also, we can consider Twilio as an ambitious company since its usage and popularity increased from 280.000 active customers in 2022 to 306.000 active customers in 2023.
Marketing SaaS Statistics
Mailchimp
Mailchimp is a tool used for multiple purposes. It unites the marketing part with the automation and email marketing part.
➤ The number of users of Mailchimp was 13 million total users in 2021, and 2.4 million of them used the tool actively.
➤ In 2021, Mailchimp hit $800 million revenue and 140 million users, as GetLatka states in its report in 2021.
Canva
As the house of nearly all designs today, Canva is a platform that you can use to prepare, present, promote, or show.
➤ According to Financial Review, the valuation of Canva is estimated at $25.6 billion dollars by some its investors.
➤ As Eksposure states in its article about Canva statistics in 2023, Canva boasts a global user base exceeding 150 million, with 16 million of them being paying subscribers, contributing to its impressive $25.5 billion valuation.
➤ Anticipated to achieve an annual revenue of $1.7 billion by the close of 2023, Canva is a preferred choice for 85% of Fortune 500 corporations.
➤ Having dedicated more than $200 million to AI technologies, Canva incentivizes users by providing royalties for training its AI engine. The platform witnesses the generation of 200 new designs per second.
DevOps SaaS Statistics
Cloudflare
Cloudflare deals with web analytics and boosts the performance of websites caring for privacy.
➤ As one of the key statistics, Cloudflare’s total customer number is 4.1 million, and 119.206 of them pay for the tool.
Also, in 2022 Cloudflare reached a total revenue of $290.0 to $291.0 million.
Product SaaS Statistics
Adobe Creative Cloud
Adobe Creative Cloud is a complete package creativity tool with a few words.
➤ Adobe Creative Cloud has also never retreated, and when we consider the subscription numbers, we see the rightness in it. The number of subscriptions has been estimated to increase to 19.74 million by 2024.
➤ In 2022, the revenue was declared as $17.606 billion, and it continues to rise.
Typeform
Typeform is an online form builder that can create forms related to your needs. It has competitors like SurveyMonkey, Microsoft Forms, and Formstack.
➤ In 2023, 358,021 sites used Typeform, and 139,390 of them were live websites. Among these websites, 60,242 are in the United States.
IT & Security SaaS Statistics
KnowBe4
KnowBe4 is a platform that works for security awareness training. It helps you know if there is any weakness in your IT and offers you security solutions based on your belongings.
➤ The revenue of KnowBe4 is $226.3 million, and it grows to 40.60% year-over-year.
➤ The last announcement of KnowBe4 made in January 2019 presented that it had 23.000 customers and 647 employees.
NAKIVO
NAKIVO Backup & Replication is comprehensive data protection for physical, virtual, SaaS, and cloud environments.
The NAKIVO VMWare backup solution is designed to protect VMWare virtual machines (VMs) and their data, ensuring fast and reliable backup and recovery workflows to greatly minimize downtime and data loss.
➤ As of Q1 2023, NAKIVO has 180 employees servicing over 25,000 customers in 181 countries.
➤ According to the company’s announcement in May 2023, NAKIVO boasts 28 consecutive quarters of double-digit growth and has experienced a QoQ growth rate of 26%.
HR SaaS Statistics
LinkedIn is a business social media platform that helps millions of people find jobs, create networks, and discover new opportunities in their work fields.
➤ According to LinkedIn, 810 million members from 200 countries use LinkedIn today.
Though the rates cannot compete with other social media platforms, like Facebook or Instagram, LinkedIn has its populace.
➤ LinkedIn’s revenue was $14.5 billion in 2022, and 26.2% was the rate of increase year-on-year.
Namely
Namely is a powerful HR software for mid-sized businesses, and it organizes your employees, devices, payrolls, and benefits.
➤ With its 252 employees, Namely had $35.2 million in annual revenue in 2023.
➤ Namely is used by 1,300 clients across 134 countries and 50 US States.
Finance SaaS Statistics
Bill.com
Bill.com saves your time, work, and effort by managing all your financial responsibilities, and it also offers you a specialized way of paying based on the size of your company and what you need.
➤ In 2023, Bill.com shared that its total revenue was $296 million, showing an increase of 48% year over year.
➤ According to the same source, in 2023, it was declared that 5.8 million network members used Bill.com, showing an increase of 23% YoY.
PayPal
PayPal is a tool for easily making online money transfers. All finance-related actions can be done with PayPal.
➤ The annual revenue of PayPal touched $29.12 billion in 2023, showing a growth from $27.51 in 2022.
➤ Today, PayPal has 429 million active users across 200 countries.
SaaS Statistics in 2024 Infographic
We've created an infographic containing brief statistics on social proof! Feel free to utilize our infographic on your website to showcase relevant statistical information.
Wrap Up
You have discovered the game-changing world of SaaS with our compelling SaaS statistics! You dived into a wealth of data showcasing the undeniable importance and impact that SaaS holds for businesses, regardless of size.
Are you curious if SaaS is the perfect fit for your business? We get it. Our comprehensive post equips you with the insights to make an informed decision or develop ideas for necessary adjustments.
Whether you're contemplating switching to SaaS or fine-tuning your existing strategy, we've armed you with ample information. Explore the SaaS trends, insights, and stats and unleash the true potential of this transformative technology.
Frequently Asked Questions
What is the Prediction for SaaS Solutions by 2024?
In 2023, the SaaS market on a global scale reached an impressive valuation of $197 billion, marking a remarkable growth rate of 66% compared to the preceding year. This upward trend is not temporary, as analysts anticipate the market to surge further to $232 billion by 2024. (Source: Deduxer)
Why are Business Leaders Moving to SaaS?
75% of business leaders have moved to SaaS as it helps to improve business agility. They also reported that SaaS implementation is fast and trouble-free, so they see no problems in moving to SaaS completely. (Source: Workday)
How Much Will the Transition to the Cloud Increase IT Expenses?
According to Gartner, the transition to the cloud will increase IT expenses, and this number will grow to $1.8 trillion in 2025. Around 65.9% of spending on software is expected to go to SaaS technologies by 2025, up from 57.7% in 2022.
How Many Companies are Running on SaaS and How Many Plan to Switch to It?
Around 38% of companies claim they are running almost completely on SaaS, while 80% of businesses say that they are planning to switch all of their systems to SaaS by 2025, as per BetterCloud statistics.
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