The virtual world is progressing remarkably. Everyone is busy growing their business digitally and finding effective ways to make their tasks easier. Due to this, SaaS has tremendously increased in recent years and it seems like it will make a splash in the future too.
SaaS is the most popular business model to build digital products. Almost whatever businesses you see on the Internet or avail services from them, are SaaS products. So you can guess from this, how huge the market of SaaS is. That is why everyone wants to make their virtual business Software-as-a-Services i.e SaaS.
You will be surprised to know, that currently, there are 55 big private companies of SaaS, whose value is more than $1 billion. These figures are enough to estimate its growth in the future. It’s true, they use SaaS SEO and other marketing channels to achieve their revenue targets.
Thus, we are here with this article, to provide an interesting and in-depth guide on SaaS products and some of their famous examples
If you have no idea about SaaS or you are looking for a SaaS product, then keep reading this article till the end. Hope our article will help you definitely.
What is SaaS Product?
A SaaS stands for Software-as-a-Service. SaaS product is web software, which is accessible to all users. It doesn’t require any installation or Maintenance, it can be easily accessible through the internet. Almost everywhere there is a SaaS.
SaaS applications are also called cloud-based software, as it runs on the web. It runs on the server of the SaaS provider. The provider itself manages the application’s security, availability, and performance. Some of the examples of SaaS products, you come across in daily life are Google Apps, DropBox, Canva, or Free Logo Creator.
SaaS product has been famous among entrepreneurs since the ’90s and to date, it has become the relevant business model. Almost 73% of business has already started their process in the cloud. By 2022 it will increase to 85%.
The main benefit of using SaaS software is, that you don’t require any specific requirements to use it, you just have to Go to the site – use the product – make the company growth.
Indeed, SaaS product has great potential, let’s explore them more
Characteristics of SaaS
To understand the SaaS model. Let’s take the instance of Netflix.
Everyone knows about Netflix, it’s a famous video streaming platform, It is a Software-as-a-Service company, based on a subscription model, which sells software to provide licensed videos on demand. Here Customer chooses a subscription plan and pays for it annually or monthly. From this point, the company takes care of its customer’s privacy and security of data and even provides all necessary features to the customer.
Therefore Netflix meets all the characteristics of the SaaS Model
SaaS Advantages
SaaS products can benefit your business growth in various ways,
Multitenant architecture
SaaS model follows multitenant architecture, which runs multiple instances of an application in a shared structure. That means Multiple users can use an application on the same server at a time. Each user is able to integrate physically, but they are separated logically.
Easy Customisation
It provides the customers, to easily customize the applications as per business process, without disturbing the common infrastructure. SaaS architecture is designed in such a way, that these customizations are unique to each company, and are always preserved through upgrades.
Scalability
You can easily adapt your requirement to a number of people, who want to use the system. Moreover, SaaS products are easily scaled with simple upgrades and subscriptions.
Budget-friendly
To build a SaaS product, you don’t require to purchase any hardware. You just have to start with the APIs that are delivered to you by the SaaS provider.
No worry about maintenance
Using a Software-as-a-Service product, you are relieved from maintenance, the software company is itself takes responsibility to keep the services up and running.
Security at the highest level
As it runs on a shared server, therefore the highest level of security has been set up for the customers, who need it most.
Disadvantages of SaaS
Security Issues
If seen, Security is the strength as well as weakness of the SaaS model. Because no cloud-based model provides 100% security against data leakage. It can occur in various ways from weak passwords to data-phishing attacks or even it could be due to the customer’s fault.
Types of SaaS
There are different types of SaaS solutions available, that your business can benefit from. Look out for some of these: –
CRM (Customer Relationship Management) Software
CRM software manages customer data and compiles business information as well as sales. In 2020, 91% of businesses used CRM software to automate their sales and marketing. HubSpot and Salesforce are one of the most powerful examples of this field.
ERP (Enterprise Resource Planning) Software
ERP software integrates various functions into one complete system, which improves efficiency and empowers information sharing. It manages every business process in real-time. The latest data research shows that customer satisfaction with ERP has increased to 68% in 2022. Some Popular ERP businesses are Oracle and Acumatica.
Project Management Software
This type of SaaS product helps to plan projects, manage schedules, allocate resources, and discuss budget and time to complete the project on time. It is based on a team. This field is expected to grow by $4.33 billion in 2023. Jira and ProWorkflow are the strongest players in this field.
Accounting Software
This software takes care of your financial records organized and well-maintained. It makes payment as well as after-payment reports in the single-click process. This market is predicted to grow $20 billion by 2026. Good examples of these SaaS products are Xero, Tripalti, and Refrens.
Collaboration Software
This type of software has the feature of communication and sharing information. This SaaS application market is predicted to reach $16 by 2025. An example of this software is Miro and i done this.
E-Commerce Software
This software offers every feature, that you need for your business on the internet. Its features include management of payment and products. E-commerce has grown remarkably since the pandemic hit. It is forecasted that by 2040, 95% of customers will purchase from the internet. Amazon and Flipkart are the best examples of these.
10 Popular SaaS Products
Software-as-a-Services (SaaS) is present everywhere on the web, we have mentioned some 10 popular SaaS products. Let’s take a look
1. Google
There is no one who doesn’t know Google, It is itself a big brand. Google has developed almost 137 SaaS products, which we use in our daily life. Its products are search engines, maps, analytics, adwards etc.
It started as a little startup in 1998. Today it has a revenue of $136 billion.
2. Freshwork
Freshwork formerly known as FreshSales is a CRM software, it is an all-in-one exclusive tool, which unifies your business process in one platform from sales and marketing to data management. It includes services like email productivity, profile enrichment, lead scoring, and app event tracking.
It provides a graphical representation of sales workflow, so users can act according to their leads. Freshworks has earned a revenue of $96.6 million in 2021.
3. Adobe
We all know about Photoshop, Illustrator, or Flashplayer. Adobe has more than 50 SaaS products in the field of printed media & marketing and video editing.
It is reported that Users open 200 million PDFs annually. Therefore Adobe has earned revenue of $9 billion last year.
4. HubSpot
HubSpot is a marketing platform, which has a specialized platform in sales and CRM. It provides support to the sales team in potential prospects, email campaigns, all kinds of customer interactions, reporting, and measuring.
With its awesome SaaS products, it has earned revenue of $1.301 billion this year.
5. Slack
Slack was released in 2013 and has developed three products. One of its main products is Slack messenger, which is mostly used for business purposes. It offers easy integration with third-party services too.
Therefore, it has acquired revenue of $401 million with 9 million active users per week.
6. Shopify
Shopify is an e-commerce platform for online stores and a retail point-of-sales system. It has four products. But its main product is Shopify – an E-commerce platform and Retail POS.
It helped the Shopify entrepreneurs to earn $1.3 billion revenue in last year.
7. Toggl
Toggl is a time-tracking SaaS product and highly-effective solution. It offers a complete lookout to your company’s workload and responsibilities and helps you to target any potential problem if occurs. It’s a helpful tool for startups and businesses. It comes with a number of features like automated tracking mode and profit analysis.
It was founded in 2006, and now it has earned $14 million of revenue.
8. Xero
Xero is a finance SaaS product. It allows the user to connect their bank account and import whatever they need in Xero in few seconds. You can categorize and schedule all your payment data. You can track your projects, pay bills, calculate sales tax, and many more.
A lot of Users, regularly use Xero to track the financial health of the business. It has earned 109.7 crores of revenue this year.
9. Dropbox
Dropbox is one of the leading tools for document and file sharing. It is used by 500 million people on a regular basis. It allows you to share a large number of files remotely, and to reach team members from anywhere.
It has earned $1,135.1 in revenue this year.
10. Zoom
Zoom has been very much popular since the pandemic. We all are super familiar with it, that’s why it needs no introduction.
It is also a SaaS product and a fantastic video conferencing tool that works on every device like smartphones and PCs. It can be used for different purposes, but mostly it is used in business to hold meetings remotely. It is used for project planning, brainstorming, and even for the hiring process.
It came into the limelight during a pandemic in 2020 and to date, it has earned revenue of $305 crores
If you are thinking to build any SaaS product or searching for a SaaS developer, then feel free to contact UPSQODE is the top software development company, our expert’s team of developers building powerful SaaS applications, for the business growth.
FAQ
What is a SaaS example?
SaaS is Software-as-a-Service, and it is used to deliver application services over the Internet. You can easily access it via the internet, without installing any software. An example of SaaS, is Google Workspace Dropbox. Salesforce. Cisco WebEx.
Is Netflix a SaaS?
Yes, Netflix is a SaaS product and sells its software to watch licensed videos on demand. The user pays a subscription amount and chooses a monthly or annual plan to watch licensed movies or series.
Is SaaS a product or Service?
SaaS is more than a product, it includes communication between business owners, and It is mainly service and falls under the category cloud product.
Which are SaaS Services?
Software-as-a-Service (SaaS), allows users to use cloud-based apps on the internet.
The basic examples of SaaS are email, calendaring and office tools. It provides
a complete software solution.
Is Gmail a SaaS?
Yes, Gmail is an example of SaaS mail provider
Is Facebook a SaaS?
It’s definitely Yes, Facebook, Twitter, in fact, all social media platforms comes under the category of SaaS. It’s a consumer network, which connects multiple people virtually.