“A cloud-based keyboard software prefers to use a monthly subscription payment method, even though there are lots of competitors that do similar things for a set price - which eventually becomes more affordable?”
And I did thorough research.
Here is what I found:
“SaaS Is The Best Of Both Worlds”
According to Bharat Kanodia , founder of Veristrat, SaaS companies promise the best of both worlds to founders:
1- The recurring revenue, which usually comes with slower growth.
2- The quick growth, which doesn’t usually last for long other than SaaS.
By combining these two great aspects, your SaaS company simply becomes a piece of real estate that has high growth potential in the investors’ eyes.
As always, I have proof that SaaS is the first choice of many investors.
Let’s take a look at the total market value of SaaS companies, shall we?
As you can see, the amount that people spent on SaaS tools has increased from $31.4 Billion to $152.18 Billion in only six years, and this number is expected to go up as high as $208.1 Billion next year!
☞ If you are a SaaS founder,
☞ If you are not sure whether SaaS is worth the burden,
☞ If you are looking for a “hack” that will help your company rise quickly to become a unicorn,
Here I gathered some tips and tricks from people who have been through the steps that every SaaS founder has gone through:
Experts’ and Leaders’ Thoughts On The Future Of SaaS
Let’s go through these three insights and quotes of successful SaaS founders that wşll help you make better decisions about your business:
1- SaaS will be defined by doing more with less
That’s right. Let’s hear it again from Chris Makkreel , head of technology at Salesforce:
“The future of SaaS will be defined by doing more with less. Today, technology is proactive but tomorrow technology will be predictive. Interestingly, 90% of all data has been generated in the past two years. I like to think about artificial intelligence and machine learning, not as a product, but as electricity that will power future tech.”
Thirty years ago, barely anyone had easy access to a computer, let alone having internet access. Back then, it was a revolution to switch to hard drives from books, but people somehow realized the importance of saving space, and decided to keep up with technology.
Now, as Chris indicates, this switch is between hard drives and cloud systems. Instead of copying CDs, now we just share online versions.
And thanks to AI and Automation services, this switch is being made by bots instead of humans.
In short, SaaS is the new revolution that allows us to do more with less.
Also, having said AI:
2- Cloud is a must, AI is a plus
The valuation of automation and AI supported services is increasing rapidly.
And I’m not talking about a logical rapid increase, it is getting more valuable than any other branch of SaaS.
“The future of SaaS is about the ability to strategically integrate with others and to create meaningful partnerships. Interconnectibility is key to being successful. This is a real challenge and a great opportunity at the same time. It is also an opportunity for smaller, more agile companies to compete with the big guys - addressing a single challenge with one solution rather than being everything to everyone.”
Right now, you don’t have to make space for a marketing team in the office, get them extra gear, and educate them for months.
Instead, you can get help from marketing tools, automation, analytics tools, and so on. The same goes for every other department.
SaaS allowed small companies to hire professionals for a tailored budget, and scale even faster.
It also helped enterprises to make cuts in the budget by trusting SaaS tools with short term or less important tasks.
Because SaaS relies on less human power while delivering human-like quality, thanks to the technological advancements.
Therefore, you should point out that your SaaS company can do even better than in-house teams in most cases.
And this, ladies and gentlemen, is why SaaS is greatly beneficial and gets more important each day.