Try our corporate solution for free!
(212) 419-8286
hadley.ward@statista.com

Software as a Service - Statistics & Facts

Together with platform as a service (PaaS) and infrastructure as a service (IaaS), software as a service (SaaS) is one of the three primary tiers of cloud computing, allowing businesses to redirect resources away from IT hardware, software, and personnel expenses, and towards other business needs. In the SaaS market, the largest companies are currently Microsoft, Salesforce, Oracle, SAP, and Google.

What does the SaaS model include?

Under the SaaS model, service providers sell customers access to and use of application software and databases through the cloud delivery model. The infrastructure, platforms, or operating systems, and often the granular details of the software are concealed from the customer, who would typically connect to the service via a client program or web browser. The customer is not responsible for maintaining the hardware or resources, as the software provider will either contract an independent software vendor to host the application and related data or otherwise host the application on its own servers. Because of this, end-users are paying a per-user or per-use fee to the service provider to maintain access to the most up-to-date version of the software. This pricing model means that costs are flexible and scalable, allowing users to be added or removed as necessary, and shielding the customer from the capital expenditure normally required to establish new platforms, infrastructure, and licenses for software.

The global SaaS market

The global SaaS market generated 148.5 billion U.S. dollars in revenue in 2019 - approximately two-thirds of the revenue from the entire public cloud services market. Although revenue growth for SaaS is not expected to slow in the coming years, its share of the overall cloud services market is expected to decline in the face of cloud platform and infrastructure services growth. A mix of different users make use of SaaS applications, including business users, IT professionals, and personal users. This hints at the range of different products offered, notably advanced IT tools, file hosting services like Dropbox, or personal entertainment such as Netflix.

SaaS products address a variety of needs

Importantly, SaaS products are marketed to both B2B and B2C users which is not the case for IaaS and PaaS products. This indicates some of the limitations and concerns attached to SaaS products. Businesses rely on external vendors for their software and its management. This may compromise a user’s ability to use SaaS offerings due to service disruptions or security breaches on the vendor’s side. Further, new versions of applications are rolled out to every customer which may require organizations to invest in extra training. Finally, switching vendors can be a difficult endeavor, as large amounts of data must be migrated.

Key figures

The most important key figures provide you with a compact summary of the topic of "Software as a Service (SaaS)" and take you straight to the corresponding statistics.

SaaS priorities & challenges

SaaS vendors

Interesting statistics

In the following 4 chapters, you will quickly find the 27 most important statistics relating to "Software as a Service (SaaS)".

Software as a Service (SaaS)

Dossier on the topic

All important statistics are prepared by our experts – available for direct download as PPT & PDF!
TOP SELLER

Software as a Service - Statistics & Facts

Together with platform as a service (PaaS) and infrastructure as a service (IaaS), software as a service (SaaS) is one of the three primary tiers of cloud computing, allowing businesses to redirect resources away from IT hardware, software, and personnel expenses, and towards other business needs. In the SaaS market, the largest companies are currently Microsoft, Salesforce, Oracle, SAP, and Google.

What does the SaaS model include?

Under the SaaS model, service providers sell customers access to and use of application software and databases through the cloud delivery model. The infrastructure, platforms, or operating systems, and often the granular details of the software are concealed from the customer, who would typically connect to the service via a client program or web browser. The customer is not responsible for maintaining the hardware or resources, as the software provider will either contract an independent software vendor to host the application and related data or otherwise host the application on its own servers. Because of this, end-users are paying a per-user or per-use fee to the service provider to maintain access to the most up-to-date version of the software. This pricing model means that costs are flexible and scalable, allowing users to be added or removed as necessary, and shielding the customer from the capital expenditure normally required to establish new platforms, infrastructure, and licenses for software.

The global SaaS market

The global SaaS market generated 148.5 billion U.S. dollars in revenue in 2019 - approximately two-thirds of the revenue from the entire public cloud services market. Although revenue growth for SaaS is not expected to slow in the coming years, its share of the overall cloud services market is expected to decline in the face of cloud platform and infrastructure services growth. A mix of different users make use of SaaS applications, including business users, IT professionals, and personal users. This hints at the range of different products offered, notably advanced IT tools, file hosting services like Dropbox, or personal entertainment such as Netflix.

SaaS products address a variety of needs

Importantly, SaaS products are marketed to both B2B and B2C users which is not the case for IaaS and PaaS products. This indicates some of the limitations and concerns attached to SaaS products. Businesses rely on external vendors for their software and its management. This may compromise a user’s ability to use SaaS offerings due to service disruptions or security breaches on the vendor’s side. Further, new versions of applications are rolled out to every customer which may require organizations to invest in extra training. Finally, switching vendors can be a difficult endeavor, as large amounts of data must be migrated.

Interesting statistics

In the following 4 chapters, you will quickly find the 27 most important statistics relating to "Software as a Service (SaaS)".

Contact

Get in touch with us. We are happy to help.
Statista Locations
Contact Hadley Ward
Hadley Ward
Sales Manager– Contact (United States)

Mon - Fri, 9am - 6pm (EST)

Contact Ziyan Zhang
Ziyan Zhang
Customer Relations– Contact (Asia)

Mon - Fri, 11:30am - 10pm (IST)

Contact Kisara Mizuno
Kisara Mizuno
Customer Success Manager– Contact (Asia)

Mon - Fri, 9:30am - 5:30pm (JST)

Contact Lodovica Biagi
Lodovica Biagi
Director of Operations– Contact (Europe)

Mon - Fri, 9:30am - 5pm (GMT)

Contact Catalina Rodriguez
Catalina Rodriguez
Key Account Manager - LAC– Contact (Latin America)

Mon - Fri, 9am - 6pm (EST)