Software as a Service (SaaS) Solutions to Gain Traction Owing to Rising Adoption of Hybrid Work

Recent years registered an increase in the adoption of hybrid work as the new normal. This has led to a greater demand for maintaining the security of Software as a Service (SaaS) solutions. Considering this, numerous industry players are focused on the protection of these applications.

According to Fortune Business Insights, the global market size for Software as a Service (SaaS) was valued at USD 237.48 billion in 2022. The market is set to expand from USD 273.55 billion in 2023 to USD 908.21 billion by 2030, exhibiting a CAGR of 18.7% over the forecast period 2023-2030.

The industry growth is driven by an increase in investments by various industry players. One such instance is the Microsoft Defender for Cloud Apps, which provides complete protection of SaaS applications. This comprises new investments in advanced threat protection and SaaS Security Posture Management (SSPM) under Microsoft’s extended detection and response (XDR) solution.

Mentioned below are the top software as a service companies in the market. These players enter merger agreements, acquisitions, and the formation of alliances for strengthening industry position:

1. Microsoft Corporation: 

Microsoft is known for offering a range of cloud solutions such as Dynamics 365, Microsoft 365, and Azure cloud services such as Azure Space, Azure Cloud, Azure Purview, Azure Space, and others. The company has its engineering group, dubbed “Cloud + AI Group” for digital transformation, artificial intelligence, and cloud computing solutions.

In April 2022, the company made big news for the introduction of Microsoft Purview. The solution enabled businesses of all sizes to effectively manage their on-premise, multi-cloud, and software as a service.

2. Salesforce, Inc.: 

Salesforce is one of the top Software as a Service companies which specializes in customer relationship management and enterprise cloud computing. The service allows organizations to leverage cloud technology for better communication with future customers, partners, and current customers. Via acquisitions, the company has enhanced its Software as a Service (SaaS) offerings, reach, and presence in various markets.

In February 2022, the company hit the headlines for an advanced revenue intelligence and sales cloud feature. The solution combines CRM analytics and Sales Cloud, furnishing a unified revenue management command center.

3. Oracle Corporation: 

Oracle provides a range of applications and products. These include industry applications, software, hardware, cloud infrastructure, and on-premise applications. The company’s Oracle Cloud Regions track and process customer workloads, offering enterprise software as a service. Some of the services provided under this offering include Supply Chain Planning, Human Capital Management, Oracle Fusion Cloud ERP, and others.

In September 2021, the company inked a SaaS payroll service for Non-Governmental and Intergovernmental Organizations. The service directs complex policies and pay rules to efficiently pay employees in any currency.

4. IBM Corporation: 

IBM provides integrated solutions and products that operate in five segments via infrastructure, software, consulting, financing, and others. IBM hybrid cloud offers portable and flexible platforms for data and applications.

In November 2022, the company rolled out IBM Z and New Cloud Modernization Center for the acceleration of their hybrid cloud portfolio. This would help IBM Z clients to modernize their data, processes, and applications in an open hybrid cloud architecture.

5. Amazon.com, Inc: 

Amazon Inc. offers a range of delivery channels, service offerings, and various product types. The products comprise merchandise and content that the company purchased for resale. The services comprise storage, fulfillment, computing, publishing, advertising, database offerings, AWS cloud services, and digital content subscriptions.

In May 2022, IBM inked a partnership with AWS (Amazon Web Series, Inc) with strategies for providing an extensive range of software series as Software-as-a-Service on AWS.

6. SAP SE: 

SAP SE is renowned for developing enterprise solutions for the management of business operations and customer relations. The company operates in software, cloud, and services business segments. It provides a range of Software as a Service solutions such as SAP Ariba, SAP S/4HANA Cloud, PaaS SAP Cloud Platform, and SAP Success Factors.

In May 2022, the company extended their Google Cloud partnership by launching new integration between Google Workspace and SAP S/4HANA Cloud that allows customers to incorporate Google Sheets and Google Docs’ capabilities from within their SAP workflows.

7. Cisco Systems, Inc: 

Cisco Systems, Inc. manufactures and designs broad-scale technologies powering the internet. The company provides SaaS across various areas including applications, collaboration, networking, security, and the cloud.

In April 2022, the company entered a collaboration with Telenor group for the delivery of secure and flexible services. The deal consisted of a cybersecurity-as-a-service solution for users, enterprises, and clients.

8. Hewlett Packard Enterprise (HPE) Company: 

HPE is known for providing edge-to-cloud solutions for helping to act, protect, analyze, and connect on all applications and data via these solutions. The company categorizes its hardware, perpetual software licenses, and software as a service as performance applications.

In June 2022, the company announced new cloud services and platform developments to HPE GreenLake, its flagship product, which will help enterprises in the enhancement of applications and data. This comprises a redesigned private cloud that gives a cloud-native experience for driving the hybrid strategy of the organization.

9. GitLab B.V.: 

Gitlab’s multi-tenant SaaS platform offers the easiest and quickest way for product adoption and at the lowest overall ownership cost. It provides deployment via three methods – multi-tenant SaaS, self-managed, and single-tenant SaaS solution.

In November 2022, the company rolled out a single-tenant version of the SaaS that will be deployed on a cloud platform for ensuring data storage in the cloud.

10. Alphabet Inc.: 

Alphabet Inc operates in three primary segments including Google Cloud, Google Services, and Other Bets. Google Cloud offers solutions such as platform-as-a-service, infrastructure-as-a-service, and software-as-a-service, and others.

In May 2022, Google Cloud inked a partnership with TD Tawandang, a retail tech company, for helping micro-retailers. The company provided a high-tech retail-as-a-service solution for helping traditional mom-and-pop stores overcome challenges and business operations.

Adoption of Cloud-Based Solutions to Offer Pathway for Growth

In the years to come, the Software as a Service industry is expected to grow at an appreciable rate over the projected period. The rise is driven by various factors such as the growing adoption of cloud-based solutions and centralized data-driven analytics.