SaaS Will Hit $116 Billion Next Year. Wow.
Cloud and SaaS continue to grow at jaw-dropping rates
Gartner has its latest Cloud report out, and while one can always pick at any report, it's at least a well-resourced and reasoned source on the size of SaaS and the Cloud.
The big learnings for SaaS founders and execs:
- Cloud overall will grow 17% next year to $266 Billion. That's a lot of growth, and it means we're solidly in the mainstream phase but not the mature phase.
- SaaS is the largest segment of Cloud and will hit $116 Billion next year. That means there is plenty of room for more unicorns in SaaS. SaaS growing 20% at $116b+ means adding $30 billion more in SaaS spend next year. Think about that for a second.
- Businesses will spend almost $20 Billion more on SaaS next year than this year. Wow.
So there are plenty of excuses out there if you need them. If you want them.
But the massive amount of capital flowing to SaaS and Cloud isn't one of them. The money is there. The customers are there. The growth is there. The belief is there.
Carpe Diem. These are the best of times in SaaS.
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Jason + Team SaaStr
Entrepreneur, Tech Executive & Founder of Proudback: Crafting Unforgettable Off-Road Experiences in Western Australia | Creating Lasting Memories
5 年Yes ... extremely passionate about industry clouds here!
Growth @ ZEPIC
5 年Especially excited about the opportunity Cloud is helping unleash for B2B commerce. Creating connected value chains leveraging data , with on the go access for all stakeholders, with platforms like Trunkroad.
Co-Founder EcoCycle365 Token - Depin /Defi
5 年It will be bigger, saas business model with enterprise mobility using the cloud based paas/ML /BaaS will be huge.....?
COO @ Churnkey.co | Chief Customer Officer
5 年And it’s just getting started.
Bizzit AI CEO | Game-up your biz-intel (live now in ????????????????)
5 年Those that sell SaaS, especially at the enterprise level, know there is no shortage of opportunity for any size SaaS company to get their foot in the door with their product inside many businesses; so long as the SaaS value is usable at a certain level of scale, the market is big enough, and you have what it takes (mainly persistence)... To that though, and what's still most impressive to me is the continued growth in the definition of what a value add SaaS company means.?? Finding value is pretty easy these days in niche SaaS verticals but once you do,?it then becomes about persistence, and most importantly, can you get it in front of the right people quick enough. If you're background is in sales and half technical (so you've got a good product), this is pretty easy. Also know this that B2B is not B2C, no matter how great your product is, you HAVE TO push it, push it, push it.? First you have to know it's a value and once you know that, the push is easier. That's where defining the value of your product becomes important, so it's better in other words to not be just another CRM or HR SaaS company (however, they still keep popping up and acquiring?customers so even there ... it's still growing). Find a niche or comparable area to go off of and make sure the market is at least $2B Build Get at it (evolve, push, repeat) Build it to sell and not just in year 1 either, unless you never plan to sell to enterprise (why though would you do that), IMO build it for years 2 and 3 at least too.?? If you know it will sell it's worth thinking through more than just a MVP.? May take you a bit longer to show traction but in the long run, you'll win.? So long as you know it will sell and is something that can be used. Last, and to the product only SaaS founders or those thinking of taking that next step, please make sure from the very beginning you have someone that knows the intricacies of selling at the enterprise level to help you define certain product requirements on the front end.?? I can't stress this enough. Bonus if you can find someone that has sold a SaaS product from day 1 to a SME/enterprise within a couple of years time.? Get them on your team from day 1, whether its at a consultant level (X hours a week in exchange for shares) or as a cofounder. It's really important to define *where* you build flexibility into the product that the enterprises will ask for 2-3 years later, and trust me if it's going to be sold to the enterprise within 3 years this should have some thought on the front end requirements.? This type of sales person can help big time there. Ryan - Bizzit, Inc. justbizzit.com