Software as a Services (SaaS) is a software distribution model, in which, instead of running a software locally on a computer, the program is hosted at a third-party location and from there it is accessed by users across the internet through a web browser interface, and any software updates are performed automatically. SaaS software providers usually provide the service via a subscription model. SaaS application is known as a web-based software, on-demand software, and hosted software.
Factors Driving Growth of the Global SaaS (Software as a Service) Enterprise Applications Market
The major factor driving the growth of the SaaS (Software as a Service) enterprise applications market is the rising adoption of cloud-based services by all end-use industries such as manufacturing, BFSI, retail, healthcare, owing to features such as enhanced scalability and flexibility of SaaS based deployment option. As SaaS is an on-demand solution, small organizations can use a software application without having to purchase it. Which, in turn, will save the cost of installing large servers, infrastructure overheads, cost related to additional resources and inventory management cost due to SaaS based deployment option.
Additionally, rising internet penetration across the globe is facilitating the adoption of SaaS enterprise application market. For instance, according to Our World in Data, globally the number of internet users has increased from 413 million in 2000 to 3.4 billion in 2016, and China, India, and the U.S. are the top countries with the most number of internet users.
Factors Restraining Growth of the Global SaaS (Software as a Service) Enterprise Applications Market
The growth of SaaS (Software as a Service) enterprise applications market is majorly restrained by data security concern. Enterprises store important data related to financial information, customer details, and product specifications. However, theft of such data can cause a huge loss to the organization.
Regional Analysis of SaaS (Software as a Service) Enterprise Applications Market
On the basis of region, the global SaaS (software as a Service) enterprise applications market is segmented into North America, Europe, Latin America, Asia Pacific, Middle East, and Africa.
In 2018, the North America market accounted for the largest share in the SaaS (software as a service) enterprise application market, and is expected to retain its dominance over the forecast period. The growth of the North America market is majorly attributed to advanced IT infrastructure and presence of a large number of organizations which are well equipped to incorporate software as a service in the region such as Microsoft, Oracle, and Adobe. Moreover, companies are investing in implementation of enterprise applications to streamline their work process.
Moreover, the Asia Pacific region is expected to exhibit the highest growth over the forecast period. The growth of this region is attributed to the increasing number of small and medium scale enterprises in major economies such as India and China. For instance, according to the Ministry of Micro, Small, and Medium Enterprises, in the year 2006-07, the number of SMEs in India was 36.17 Million, and increased to 63.38 Million, at a growth rate of 6.43% annually
Key Players in the Global SaaS (Software as a Service) Enterprise Applications
Some of the key players operating in the global SaaS (Software as a Service) enterprise application market include Microsoft, Salesforce, Adobe, Oracle, SAP, Accenture Plc, IBM, Infosys Limited, Tata Consultancy Services Limited, and others.
Global SaaS (Software as a Service) Enterprise Applications Market: Taxonomy
The global SaaS (software as a service) enterprise application market is segmented on the basis of enterprise size, application, end-use industry, and region.