Over the years, I’ve witnessed the business rework with the introduction of disruptive applied sciences. A disruption that has been round for some time however is gaining large momentum now’s Software-as-a-Service (SaaS). There has been a surge of companies embracing cloud-based fashions because it has grow to be crucial for success. But we’ve got barely touched the tip of the iceberg of the SaaS revolution. The rising adoption of SaaS is on the muse of the ubiquity of the web and the provision of attractively priced cloud platforms. Globally, the dimensions of the SaaS market, which stood at $100 billion in 2019, is rising at 22.6 per cent CAGR, in accordance with a current NASSCOM report. Moreover, the report additionally states that the home market for SaaS India is more likely to broaden 6x to $13-15 billion by 2025.
Along with all its challenges and uncertainties, COVID-19 has additionally supplied never-ending alternatives for SaaS innovation. Enterprise and small and medium-sized companies (SMB), who had been planning their digital transformation journey as a long-term, phased strategy, had been plunged into this shift in a single day, which has actually benefited them. To speed up this shift of shifting companies to the cloud or integrating software program to the business, SaaS has positively been a silver lining as a cheap and environment friendly resolution.
I strongly imagine that the next two years will probably be an opportune time for Indian SaaS firms, because the markets open-up and digital adoption proceed to fast-track. This can also be a pivotal time for SaaS startups because it creates an equal alternative for their progress as properly.
SaaS rising as key progress driver
Since its inception, SaaS has largely been pushed by buyer obsession, fast determination making, and cost-effectiveness. The danger concerned with upkeep, implementation value, and safety is minimal and therefore, making a horny proposition. In India, SaaS firms have achieved properly attributable to a spread of causes:
- Smarter customisation and implementation for a various buyer base
- The rise of deep-tech startups with their ardour to innovate, create new options leveraging the standard expertise out there
- The combinatorial energy of different rising applied sciences similar to Artificial Intelligence, Machine Learning, Natural Language Processing & IoT
- With the provision of cloud platforms like AWS, and entry to higher and cheaper web connectivity, constructing new SaaS functions has grow to be inexpensive
- With the imaginative and prescient of Atmanirbhar Bharat (Self-Reliant India), Indian SaaS firms are creating and promoting their personal functions as an alternative of outsourcing it
Opportunities for startup ecosystem
Apart from the plethora of alternatives which are brewing right here within the nation, Indian SaaS startups are additionally catering to the altering wants of the worldwide markets. The startup ecosystem will proceed to develop its footprint globally, unlocking a treasure trove for India’s future. Interestingly, there was a rising curiosity in empowering this burgeoning SaaS startup ecosystem each from giant corporates and VCs.
The NASSCOM report additionally signifies that the funding in India has grown by 15 per cent during the last three years, and 2020 alone noticed six SaaS unicorns emerge, that are anticipated to develop exponentially within the coming years. There is a large untapped market that SaaS startups can dive into, throughout industries in India and in addition developed markets similar to Europe and North America.
Scaling additional with collaboration, integration, neighborhood
The SaaS ecosystem has been resilient with cloud utilization hovering and corporations going digital to allow applied sciences that gasoline the huge shift to distant working and digital innovation. The want for easy integration of knowledge and business processes will be achieved with SaaS choices. Furthermore, collaborating with companions will allow out-of-the-box and customised integration, together with improved consumer expertise, finally giving the shopper precisely what they want. The Indian market gives immense alternatives as sectors together with healthcare, fintech, and e-commerce are adopting expertise into their methods and have begun to leverage cloud computing to drive communications and collaboration to a larger diploma.
Another necessary side to think about is the necessity to kind communities in order to allow the entire business to scale and thrive collectively. Being a component of a SaaS/tech/startup neighborhood opens up ample alternatives that can facilitate business progress and data for startups by means of smart-tech.
The present yield of Indian SaaS startups has the promise to tackle their world counterparts straight. They are well-equipped to develop into bigger enterprises. Entrepreneurs must capitalize on each alternative introduced to them and empower the business to embrace SaaS in each core business course of. This pandemic has given the business a much-needed enhance. India is gearing up for the next wave of SaaS startups who’re perfecting their mannequin at residence and are going to rapidly broaden into the worldwide market.
Sanket Atal is the Managing Director of Intuit India. Views expressed are the writer’s personal.