Critical SaaS Statistics That You Need to Know

Geri Mileva on SaaS Marketing

What Is the Current Business Trend?

The global Software-as-a-Service (SaaS) industry is definitely on the rise. In 2017, tech companies Microsoft, IBM, CA Technologies, and SAP traded their product development strategies for SaaS-based ones.

All kinds of businesses of all sizes use cloud-based software. In this digital age, it would be hard to find an online business with no form of SaaS in their workflow. SaaS applications are becoming the standard for hosting business applications.

Businesses go for SaaS because of its powerful feature promoting better collaboration and communication at lower costs. Its deviation from its predecessor is what makes it a thriving industry.  

Why Are Companies Migrating to SaaS?

  • SaaS doesn’t have the same requirements as traditional software in terms of installation and costs. It requires minimal to no installation, and there is no need to purchase any hardware.
  • SaaS is a breath of fresh air for companies that have for so long been tied to license-based software with limited accessibility. SaaS can be accessed anywhere using any Internet-enabled device.
  • As SaaS is hosted by a third party, its updates and maintenance are automatic and taken care of. Businesses do not need to allocate funds for an IT unit who would otherwise do these tasks.
  • SaaS offers different payment tiers depending on the customer’s needs. 

All of these result in significant financial savings for companies that utilize SaaS. With the numerous benefits that it delivers to businesses compared to its predecessors, it is no wonder that companies are migrating to SaaS.

SaaS is changing the global business landscape in a big way. As of last year, a majority of companies have already shifted to SaaS for their business operations.

Critical SaaS Statistics Behind Key Business Trends

With the variety of services that SaaS offers businesses, its fast-paced expansion is quite expected. By 2020, 73% of organizations will have their workplaces powered by SaaS apps.

Looking ahead, it is imperative that you know about the key trends and SaaS statistics that are shaping the future of the business landscape.

1. Higher Acceptance of SaaS Among Businesses

2017 marked a 33% increase in the number of companies that prefer to use custom B2B software applications. It is predicted that the number of companies that will adopt SaaS will grow even more.

Statistics show us that, in the US, 80% of end users prefer using SaaS applications, a dramatic increase from 52% in 2016. Based on these figures, it seems safe to conclude that SaaS businesses will expand exponentially in the coming years.

The presence of SaaS is highly impacting the efficiency of business workflows. On average, companies have 16 to 18 SaaS subscriptions with an investment of close to $14,000 for this purpose.

SaaS covers most of the businesses’ operational functions from sales, customer support, dev ops, financial operations, and HR processes.

2. The “Going Mobile” Approach

It is expected that there will be 2.87 billion smartphone users by 2020, and communication apps are more valuable than ever for sales and marketing. Around 2.5 billion people are expected to use messaging apps on a regular basis for business transactions and operations.

It is a no-brainer why SaaS companies have started prioritizing mobile platforms. They understand the importance of delivering excellent user experience. They want to answer the end users’ demand for flexibility and accessibility through their products.

In other words, with the “going mobile” approach, users can access digital products anytime, anywhere. As more and more people continue to rely on their mobile devices, so will the mobile SaaS industry continue to grow.  

3. SaaS and the BYOD Trend

The SaaS market grew to a whopping $181 billion in 2017. With the global shift toward cloud computing, businesses have continued to veer away from shared working spaces and fixed hours.

This is especially true for small US businesses that have readily accepted the Bring Your Own Device (BYOD) trend.

It is said that 9 out of 10 employees connect their personal devices to corporate networks while at work. The BYOD trend allows employees to access business data from their own devices. This translates to significant savings for business owners and increased flexibility for employees.

Tracking employee performance is also a non-issue thanks to effective monitoring apps, which are cloud-hosted as well. It’s a win-win scenario for both employees and employers.

4. Custom Integrations for Everyone

Many experts believe that the next trend is for SaaS to be neither vertical nor horizontal, but a combination of both to make it fully successful.

To be on the safe side, though, make sure to perform a compatibility check between the SaaS tool and the existing tech infrastructure system.

Before you purchase any SaaS system, determine if it is able to integrate with your existing business processes and whether it can work with the homegrown and existing systems of your business.

5. Data Protection and Security

Based on a survey by Cisco, in 2017, 83% of the top performing US businesses planned on using a SaaS strategy and collaborating with cloud service providers. Prior to 2017, 70% of these companies had not considered SaaS.

You may be wondering, why the sudden shift? A quick look tells us that businesses go for SaaS because it is more cost-efficient, but in fact, most of the enterprises had a change of heart because of data security.  

With a series of serious security breaches in 2017, data protection was a major deciding factor for businesses. Today, SaaS companies continue to take this matter seriously as the demand for secure cloud services for businesses remains strong.

SaaS technology relieves companies’ IT departments of data protection tasks.

6.   Demand for Immediate Response

Businesses are opting for SaaS with the goal of having higher customer retention rates that may lead to 95% increased revenue.

In a study by Zendesk, it was revealed that delivering cloud-based functionality improved customer satisfaction by almost 28%. Moreover, 62% of B2B buyers preferred purchasing SaaS technology because of positive navigation experience.  

Research has shown the need for immediate response. Responses should be sent within a five-minute time frame. Prompt response spells the difference between a lead conversion and a loss. In fact, an extra five-minute delay can lessen the probabilities of lead conversion by about 400%.

SaaS has the ability to engage customers in immediate, contextual, and conversational interaction. We are able to see this as chatbots become more and more sophisticated, adding a “human touch” to client communications.

Quick response, 24/7 availability, advanced multi-tasking capabilities, and guaranteed efficiency establish live chat support as a significant SaaS feature that will continue to exist for a long time.  


SaaS delivers solutions to businesses of all kinds and sizes. Indeed, all aspects of business operations—from HR and management to accounting, sales, marketing, and customer support—benefit from the use of SaaS. Studying the trends and statistics mentioned above shows us that the SaaS industry will no doubt continue to flourish.