Daria Lymanska
CEO & Founder

Too many requests! You have made too many requests!! No more requests!!!
– How many times do you have to hear that before you get really angry?Amazon Chime API’s request throttling tested our patience like this. But all we ever wanted was to make a simple text chat app work! In this article, you’ll find out why Chime was so unkind to us, what we did to turn things around, and how you too can follow the path we forged.

What is a SaaS product?

SaaS (Software as a service) is a software distribution model in which a cloud provider hosts applications and makes them available to end users over the Internet. Therefore, SaaS applications are not set up and maintained by companies. A monthly subscription fee gives users access to the ready-to-use software. To make an analogy, the SaaS using process is like renting a vehicle, for which the lessor pays the price and uses it on demand. Nowadays, SaaS presents not as a service but as a necessary element at the center of the functioning of every second business.

Here are some statistics referring to SaaS software:

  • The global SaaS market was valued at $237.48 billion in 2022, with projections to reach $908 billion by 2030, growing at a CAGR of 18.7%.
  • Over the last seven years, the SaaS industry's size has increased by approximately 500%.
  • The U.S. SaaS market is expected to grow at a CAGR of 5.64% from 2023 to 2028, reaching over $186 billion by 2028.
  • By 2026, it's anticipated that public cloud spending will constitute over 45% of total enterprise IT expenditure.
  • Large companies (with over 1000 employees) use about 150 different SaaS products, comprising 70% of their total software usage.

Top Industries

Leading industries in SaaS adoption include healthcare, financial services, manufacturing, and retail.  This trend highlights the importance of cloud-based solutions in driving business efficiency and innovation.

  • Manufacturing: Projected to surpass $19 billion in SaaS market value by 2026, with increased adoption of cloud solutions for supply chain, inventory, and production planning driving growth.
  • Web and Video Conferencing: Expected to reach $7 billion by 2026, driven by remote work practices and advancements in IoT, AI, and video compression.
  • The healthcare SaaS market: Is projected to grow at a CAGR of 19.5% by 2028, driven by ongoing digitalization efforts, including the adoption of electronic health records (EHRs) and telehealth solutions.
  • CRM (Customer Relationship Management): Expected to grow at a CAGR of 13.43%, reaching $59.4 billion by 2027, driven by higher adoption among SMEs, cloud-based solutions, and a focus on customer engagement.
  • EdTech (Educational Technology): Projected to grow at a CAGR of 19.1% through 2028, spurred by increased demand for virtual learning platforms and educational content.
  • HR (Human Resources): Anticipated to expand at a CAGR of 15.8% up to 2028, with growth fueled by the need for efficient management systems, talent acquisition tools, and advanced analytics.
  • Property Management: Expected to see a CAGR of 15.5% until 2028, driven by demands for automated rental management and enhanced tenant experiences.

Top Players

To get a clearer idea of what a SaaS product is, here is a list of the biggest SaaS companies known around the world:

  • Microsoft Corporation;
  • Adobe Inc.;
  • Figma;
  • HubSpot;
  • Trello;
  • Zoom;
  • Slack.

Suppose you have experience using one of the above products. In that case, you can imagine how it works, why it is convenient, and how important it is to implement such SaaS platforms in your business.

Our company also deals with similar SaaS development services. We implemented the latest technology to build an innovative financial CRM system and booking beauty appointment platform, according to SaaS approach.

Benefits of using SaaS products

So, what are the benefits of this system for you? If you clearly understand what function SaaS products perform and your business purpose, you can formulate precise requirements for the end result of using this service. This section will list the main things that SaaS providers can offer for B2B and B2C businesses.

  • You pay only for the resources and functionality that the company actually uses. There is no need to pay for the full range of services that a SaaS provider offers you. You're free to choose the necessary and critical features for your business and pay only for them.
  • Economic benefit. This point can be viewed from two angles. First, you know exactly how much you'll have to pay for the subscription period, and you won't have surprises with the increased cost of the resources you've already paid. Second, you won't risk your investment in such a subscription. If your business needs a more powerful or extensive platform to deploy your capacity. You'll end your subscription to one product and switch to another without losing money.
  • Accessibility to your team from anywhere. Any device your employees use - PC, laptop, mobile phone, tablet - can use the SaaS product.
  • Shared use of the software by the entire team. There is no need to buy a subscription for each user within the same company; the only exception may be the limit of connected users.
  • Centralized software updates. There is also no need to worry about updating the paid platform manually; the providers will do everything for the customer.

Business prospects with SaaS products

Enterprises incorporating SaaS products into their business concept are uniquely positioned to benefit from this growing trend. Here are some key business prospects with SaaS products, supported by statistics and numbers:

  • Cost savings: SaaS service reduces businesses' need to invest in expensive hardware and software, which leads to cost savings. As a result, companies can save up to 20-30% of their IT costs.
  • Scalability: According to 68% of companies, scalability is one of the main benefits of using SaaS. Therefore, a company can quickly increase or decrease its use of software as needed. 
  • Security: SaaS products offer enterprises advanced security features to reduce the risk of data breaches, including encryption and multifactor authentication. 94% of enterprises report a noticeable increase in security after implementing SaaS.
  • Competitive Advantage: 74% of companies claim SaaS gives them an advantage through the quick and cost-effective deployment of innovative software.

Summary

As you have already understood, SaaS products are not only an opportunity to effectively manage business processes and business as a whole but also a practical necessity, without which it will be easy to optimize work processes and implement large-scale projects without a platform for necessary control. 

By understanding what working principles SaaS is based on, you can maximize the potential of SaaS in your business and achieve greater success by 2030 and beyond.