The Age of SaaS-tups
It’s not a secret that the pandemic has been a tailwind to cloud adoption. Most businesses migrated to the cloud to ensure the delivery is resilient and consistent and the deliverables maintain a high level of quality. According to marketsandmarkets. com, the global cloud computing market size is expected to grow from
$445.3 billion in 2021 to $947.3 billion by 2026 at a Compound Annual Growth Rate (CAGR) of 16.3 percent during the forecast period.
The recent Gartner forecast also sheds light on how the exponentially growing cloud services market adds fuel to the global Software-as-a-Service (SaaS) market. Gartner predicts that by 2026, 75 percent of organizations will adopt a digital transformation model predicated on the cloud as the fundamental underlying platform. While cloud infrastructure and platform services drive the highest spending growth, SaaS remains the largest segment of the cloud market by end-user spending. SaaS spending is projected to grow 17.9 percent to a total of $197 billion in 2023.
Asia has made the most of this favorable ecosystem. According to Statista, the revenue is expected to show a CAGR of 14.48 percent, resulting in a market volume of $58.40 billion by 2027. India minted 21 unicorns last year, and the major wedge of them are SaaS startups. However, the next phase of SaaS & IaaS growth will be driven by customer experience, digital and business outcomes, and the virtual-first world. Providers will continue to face demands to redesign SaaS offerings for increased productivity, leveraging cloud-native capabilities.