Key findings: SaaS
This procurement market intelligence report offers insights into the top SaaS companies, SaaS pricing dynamics, and supplier cost breakup. An analysis of the factors that are driving the global SaaS market growth is also offered in this report.
The spend momentum for SaaS category is estimated to gain acceleration because of the extensive adoption of vertical SaaS applications in tandem with the growth of micro SaaS businesses, and the emergence of mobile-based SaaS applications. However, market experts believe that this thriving SaaS market is not bereft of its challenges which come in the form of data security and limited internet connectivity. Difficulty in integrating the SaaS technology in the new, as well as the existing applications, pose as another significant challenge faced in this market.
To access complete details on the annual spend growth rate until 2023, and the SaaS pricing dynamism, download a free sample.
Our reports from the information technology category offer buyers with actionable data on the current and future supply market scenario. Coverage of the US market, including category spend analysis, SaaS pricing outlook, and supplier cost structure, among others, is also offered in this market intelligence report. Additional information includes an analysis of the cost and volume drivers, top SaaS companies, and category management strategies.
Insights into the global SaaS market growth offered in this sourcing and procurement report will help the buyers understand:
- Global and regional spend potential for the period of 2018-2023
- Pricing models and the factors influencing them
- SaaS pricing strategies to achieve cost-savings
- Ease of market entry
Analyze the global category spend for SaaS
Based on the buyer’s customization requirements, the global SaaS market is divided into ERP, CRM, HRM, SCM, and others. Of these divisions, the ERP segment is set to surpass a value of more than $70bn in the coming years. This growth can be attributed to factors such as the need to boost operational efficiency and transparency within buyers' organizations and high penetration of cloud-based deployment model. The growth of the ERP segment will significantly contribute to the spend growth rate of the SaaS market.
Access the complete year-over-year spend growth rate and category spend details by downloading a free sample copy.
This SaaS procurement research report offers coverage of:
- Regional spend opportunity for suppliers
- Global and regional spend segmentation
- Cost drivers impacting pricing
Optimize category spend for SaaS
Frequent fluctuations in the SaaS pricing statistics make it essential for buyers to procure this category strictly based on their organizational requirements. Failure to do so results in incurring an incremental procurement spend in the long-run. Buyers should also assess the customization capabilities of the SaaS applications which are crucial to determine the feasibility of these applications in their existing business infrastructure. Below listed are the parameters that buyers must consider while evaluating the customization capabilities:
- Increased deployment complexities
- Cumbersomeness of software upgrades
- The possibility of undermining best practices built into applications
- Increased chances of failure
This market intelligence report on SaaS also covers:
- Total cost of ownership
- Supply chain margins and outlook for input costs
- Overview and comparison of pricing models
Assess category spend for the US region
The rapid adoption of digitization across the organizations is favoring the category spend momentum in the US to a significant extent. Significant end-user sectors such as BFSI, manufacturing, and retail are exhibiting a high demand for SaaS applications in this region. The top SaaS companies in the US are known to leverage artificial intelligence (AI) and machine learning in their service delivery models which are helping them achieve innovations in the cloud services market. Such capabilities are appealing to a large customer base, thereby; improving the overall SaaS market growth.
Additional information offered in this SaaS procurement market intelligence report will help buyers analyze:
- Supplier cost structure in the US
- Margins of suppliers and category cost drivers
- Category spend potential in the US
Build strategies for effective supplier selection
To avoid any unsolicited SaaS pricing build-up, buyers must ensure that the applications offered by the service providers are in harmony with the buyer’s business purpose. Considering data security to be one of the major concerns in the current market, buyers must evaluate the service provider’s capability to provide data and system security, the maturity of security operations, and security governance processes to achieve a clear understanding of the service providers' capabilities.
This SaaS procurement research report identifies the significant costs incurred by suppliers and provides additional information on:
- Top SaaS companies and their cost structures
- Buyer and supplier KPIs
- Incumbent supplier evaluation metrics
Devise effective category management strategies for SaaS
Category managers must weigh in the potential capabilities of the SaaS applications that can add value to buyer’s business. Capability to boost the overall operational efficiency, the financial performance, and gain insights to assist business decisions are some of the factors that determine the value-addition of the SaaS applications.
Key insights offered in this market intelligence report on SaaS will help the buyers identify:
- Critical KPIs for buyers and suppliers
- Category management objectives and risk management strategies
- Sustainability practices
Determine the spend dynamics for key geographies
Increasing adoption of SaaS-based applications such as HCM, office suites, e-mails, and web conferencing by end-user industries is propelling the SaaS market growth in North America. This growth is expected to be further supplemented by the subsequent demand of the cloud enterprise application segment of the SaaS market in North America. UK, France, and Ireland are registering huge investments in SaaS applications which are positively driving the SaaS market growth in Europe. Statistics state that the current SaaS market in APAC is expected to grow at the fastest rate because of the increasing adoption of cloud computing software and rising demand for subcategories such as CRM from end-user industries.
Key geographies analyzed in this SaaS procurement research report include the following:
- North America
- South America
Information on the top SaaS companies, comprehensive SaaS pricing strategies, and significant risks faced while procuring SaaS services are offered in this market intelligence report. Download a free sample to access the report’s complete scope of coverage.
Key Features of Report
Procurement Best Practices
Cost Saving Opportunities
Supplier Capability Matrix
SaaS - Category Spend Analysis
According to SpendEdge analysts, one of the key growth contributors for the SaaS market is the enhancement of SaaS with PaaS capabilities. The implementation of PaaS capabilities allows buyers to create and distribute add-on applications for flagship products. These applications are easy to test, imploves deployment of software, and helps create applications with shorter TATs.
SaaS – Procurement Best Practices
Buyers must utilize the expertise of technical professionals during the installation and deployment of SaaS software applications as it offers benefits. They can leverage the detailed knowledge of these experts regarding the operational nuances of various departments in organizations and gain insights regarding limitations of the current systems.
SaaS - Procurement Challenges
Based on the analysis in this report, a major procurement pain point experienced by the buyers is the difficulty in choosing apt pricing model. SpendEdge’s procurement specialists predict that the buyers must conduct extensive research and choose pricing models while considering factors such as usage, configuration, and setup costs.