In order to enhance and sustain their dominance in the global software as a service (SaaS) market, the leading players are increasingly focusing on different cloud computing offerings to diversify their product and service portfolio. Transparency Market Research (TMR) observes that they are targeting different SaaS applications and emphasizing on strategic acquisitions in order to strengthen their position in the market.
The leading companies in the market are Salesforce.com Inc., Oracle Corporation, and Automatic Data Processing Inc. “Emerging players such as Fujitsu Ltd. and Workday Inc. are investing in product development and introducing new technologies, features, applications, and functionality to stay relevant in the market,” says the author of the report.
The valuation of the global SaaS market was US$29.33 bn in 2015 and is poised to reach US$ 164.29 bn by 2022, expanding at a CAGR of 27.9% from 2015 to 2022. North America will continue to be the leading revenue contributor until 2022, owing to the high awareness about cloud computing services and the associated cost benefits. On the other hand, Asia Pacific will exhibit a significant CAGR of 32.1% during the same period.
Large Enterprises to Remain Leading Revenue Contributor through 2022
On the basis of end users, large enterprises will account for the leading share throughout the forecast period, with a revenue generation of US$84.58 by the end of 2022. Large enterprises are increasingly formalizing plans to install new applications, and in most of the cases, replacing the on-premise software with SaaS-based products. The small and medium enterprises/businesses (SMEs/SMBs) segment will rise at a noteworthy CAGR of 29.5% during the forecast period. The growth of the segment can be attributed to their low business complexity and capital requirements.
Dynamic Business Requirements to Drive Deployment of SaaS Solutions
With the increasing business outsourcing and the rising globalization, organizations are prompted to expand their boundaries in order to offer products and services to a large number of communities around the globe. “They are looking for reliable business data in order to improve their workforce investment strategies and uncover potential problems and their underlying causes,” says a TMR analyst. This is encouraging organizations to opt for appropriate SaaS solutions.
Continuously changing business requirements are making companies less willing to integrate and maintain expensive on-premise solutions. As a result, SaaS computing model is acting as one of the attractive cloud solutions for the organizations that are looking to meet their diverse business needs and overcome economic challenges. Moreover, the growing adoption of SaaS-based HR management solutions in order to overcome the scarcity of skilled workforce and ensure a balanced portfolio of targeted talent-management strategies is providing a fillip to the global SaaS market.
Lack of Integration and Data Security Concerns to Hamper Growth Prospects.
Low interoperability and data security are two major concerns associated with the use of SaaS. The difficulty involved in direct access to data is creating a high level of complexity in combining legacy on-premise systems, cloud applications, and multiple SaaS applications. Moreover, the direct extension of control and security to remote users who are accessing different SaaS applications without knowing about the corporate infrastructure can pose a serious threat to data security. Therefore, these concerns are hindering the growth of the market.
The information presented in this review is based on a Transparency Market Research report, titled,“Software as a Service (SaaS) Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015–2022.”
The global SaaS market has been segmented as below:
Global SaaS Market, by Deployment
Global SaaS Market, by Application
Global SaaS Market, by End User
Global SaaS Market, by Region
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