Earlier this year, Harvard Business Review shared an article signalling ‘the rebirth of Software as a Service (SaaS)’ industry. Written by Frank V. Cespedes and Jacco van der Kooij, the piece goes on to detail that the SaaS market grew at a rate of 300% between 2012 and 2018, which is five times faster than the revenue of S&P-500 companies.
The growth of the SaaS market is unprecedented. According to GlobeNewswire, the global SaaS market share is expected to reach USD 720.44 Billion by 2028, up from USD 143.77 Billion in 2021, at a CAGR of 25.89%. The industry is ripe for opportunities and is constantly changing to keep up with technological developments. The SaaS landscape today is unrecognisable in comparison to a decade ago.
James Scott-Northway, Project Engineer at Alternit One explores the changing terrain of the SaaS market and the future of cloud technologies and client services. Within an industry that offers so much potential for development, Alternit One has been supporting career progression for staff. For James, this journey has seen him develop from working on the support team to building infrastructure solutions. With so much rapid change, James is constantly carrying out R&D to ensure Alternit One is able to best fully support client needs.
“The Harvard Business Review article opened with a summary stating that traditional sales models for the customer acquisition of the sales of products are changing in the SaaS industry. Based on our experience of the last year or two at Alternit One, this is a perspective we agree with” says James.
“We are moving beyond traditional infrastructure for managed IT services whereby there is a “break-fix” support with regards to operations. In the past Managed Service Providers (MSPs) would approach clients with technology that would manage the entirety of their systems. However, we are now working towards embracing a dynamic and agile model when working with clients. We work with vendors who supply us with a suite of different SaaS products that can support our client's different IT business goals and needs. We handpick the best of the best SaaS products for each client. We then create a bespoke suite of products that is able to expand with the growth of the client.”
Digital transformation has been a driving trend behind the rise of the SaaS operational model for firms. Many clients now operate in a hybrid format, using cloud technology and SaaS products for day to day operations. Everyday examples include email, office tools and calendaring as evidenced with Microsoft Office 365.
According Gartner, 89% of companies currently use cloud services and the value of the market is expected to rise to $356.6 billion by 2026, indicating the growth and sophistication of the products and services within the sector. As SaaS products for business operations and managed IT services continue to grow in sophistication, having a model that grows with a company means they are well positioned to embrace the future and will be able to keep up with the pace of technological developments.
“It is important to us as a business” continues James “that a company’s IT environment is able to grow with them. Because of this, we position ourselves as a partner to our clients and we are there to assist them along their journey to growth. Every business has a different journey and goals, which is why we ensure to create a bespoke suite to match the needs of our clients. It is an exciting time to be working within the industry as there is so much room for growth and development.”
If you would like to learn about how we can assist you with your IT managed services and the implementation of SaaS within your business, contact us today.