Since the year 2019, the Software as a service industry has been witnessing increasing popularity amongst Fortune 500 companies. What started as a means of catering to the software needs of large corporations, has evolved to be able to accommodate various scales and types of business.
According to Gartner, the SaaS industry should be worth more than $120 billion in 2021. As a relatively new and interesting tech-driven market, lots of potentials abound as many startups are beginning to emerge in this market. People who want to switch service roles are now considering honing requisite skills and knowledge to work in the innovative SaaS industry. We consider the top 8 SaaS companies and the peculiarities of the SaaS business.
What Is a SaaS Company?
In deducing the SaaS company meaning, we consider each word that forms the term. SaaS is the abbreviation of Software as a service. SaaS companies render services to their clients via software. SaaS companies develop products that host and make client data accessible on any device via the Internet.
SaaS companies take the responsibility for hosting the software and rendering customer support services for the clients. SaaS companies utilize cloud hosting services to make data available to clients without the need for end-users to download any software before accessing data. The SaaS industry serves both B2B and B2C clients.
Pros and Cons of SaaS Companies
Like any other industry, B2C and B2B SaaS companies also have pros and cons which are peculiar to them.
Pros
1. Flexible Licensing: SaaS companies offer clients better pricing plans which suit clients need. Users need not purchase a license to download any software.
2. Manageable Software Versioning
Since the SaaS provider is the sole manager of the software, it is easier and more efficient to upgrade software versions.
3. Scalable: SaaS companies provide plans that suit specific business types and sizes. As a business grows, the SaaS services can also grow to accommodate the needs of the growing business.
4. Cloud deployment: SaaS businesses offer the opportunity to backup data and share data within the highly secured cloud environment. Clients can also control what type of data to share with others.
Cons
1. Longer sales cycles
Securing loyal clients for SaaS business takes more time and effort than many other businesses. It takes an effective marketing strategy to find leads and keep them.
2. SaaS business model is easy to replicate
There are many SaaS businesses due to lower entry barriers and accessible IT infrastructure. Pricing becomes competitive, so businesses can not have absolute control over the pricing of their services.
3. Security
Most clients are worried about the security of data stored on cloud servers. A breach in data security can mark the end of a SaaS business.
Top 80 SaaS Companies
Due to the innovative nature of the SaaS industry, we have many startups and well-established enterprises competing for a share of the huge market. Below is a list of SaaS companies you can find online.
1. Microsoft
2. SalesForce
3. Netflix
4. Adobe Creative Cloud
5. Box
6. Slack
7. Google G Suite
8. Zendesk
9. Amazon Web Service SaaS
10. DocuSign
11. Cisco
12. Oracle
13. ADP
14. GitHub
15. HubSpot
16. ServiceNow
17. WorkDay
18. GoToMeeting
19. Atlassian
20. Twilio
21. Xero
22. Coupa Software
23. Xactly
24. Marketo
25. Zuora
26. Intuit
27. Sage
28. Adroll
29. Shopify
30. Bill.com
31. Eventbrite
32. Mulesoft
33. Splunk
34. PayChex
35. Cornerstone
36. FreshBooks
37. Domo
38. New Relic
39. Blackboard
40. Tableau
41. Act-On Software
42. Blackbaud
43. Cvent
44. SurveyMonkey
45. Veeva Systems
46. Druva
47. PieSync
48. Meistertask
49. GoodData
50. Teem
51. ServiceMax
52. Avangate
53. 2Checkout
54. Apptio
55. RingCentral
56. Okta
57. Intercom
58. Trackmaven
59. Dropbox
60. Insidesales.com
61. Mobinity
62. Square
63. Wix.com
64. Zoom
65. Veracode
66. Rapid7
67. MailChimp
68. Pipeliners CRM
69. Personio
70. Anaplan
71. DataBricks
72. Eloomi
73. Practical Ignition
74. Spendesk
75. ProofPoint
76. Bitnami
77. LogMeIn
78. CodeSignal
79. Travelperk
80. KnowB4
8 Best Examples of SaaS Companies
Let's consider some top SaaS companies you can work with.
1. Salesforce
Salesforce is the most dominant company in the SaaS industry. As of 15th January 2020, Salesforce has a market cap worth about $161 billion. Salesforce is launched based on the customer resource management (CRM) template. Over time, Salesforce has expanded its services to include marketing, analytics, platform development, and social networking.
2. Shopify
Shopify is another top-ranking SaaS company that is built around commerce. A large proportion of e-commerce businesses use the Shopify templates. Shopify is a cloud-based channel that equips small and medium-scale businesses to sell their products both online and offline. Shopify can manage inventory for brick and mortar stores while it also runs the online store.
Tip: With the SaleYee Dropshipping Platform, you can easily start dropshipping on Shopify!
3. Square
Square offers cloud-based and offline point of sale (POS) services. Square can be used by all types of corporations and businesses that issue invoices. It also integrates with CRMs to allow the easy collection and use of data. Square is compatible with PC and all mobile devices.
4. Zoom
Statistics show that in Jan 2020, the Zoom market cap hit $20.99 billion. Zoom deploys its cloud-based hosting service to provide video conferencing for individuals and corporations. During the Covid-19 lockdown, Zoom became one of the most widely used video conferencing platforms.
5. Zendesk
Zendesk is among the best SaaS companies in 2020. It has a market cap of about $15 billion. Zendesk offers cloud-based customer services including billing, shipping, order tracking, and customer data management. Zendesk works with both B2B and B2C clients in its operations.
6. HubSpot
HubSpot is a cloud-based CRM tool. It works specifically for construction businesses having 10 - 1,000 workers. With HubSpot, supervisors can manage workflow and monitor projects assigned to workers. HubSpot CRM is available for both free and paid versions. HubSpot is worth over a $7.8 billion market cap.
7. Dropbox
Dropbox allows users to save and access files using cloud services. As a collaborative file storage platform, it allows easy sharing and editing of files among authorization users. The Smart Sync feature allows users to sync files with their mobile devices and PCs. With a market cap of about $7.7 billion in January 2021, Dropbox can influence the SaaS market fairly.
8. Wix.com
Wix is popularly known for its website-building platform. Wish also provides all-in-one online schedule services for B2B and B2C clients. Wix tools can be used by startups and already established businesses. The products are scalable to meet up the demands of a growing business.
Call to Action
We have explained what is a SaaS company. The SaaS model is an innovative and rewarding one that takes advantage of the latest technology. You can leverage this model to create the business you desire.