SaaS is a software licensing model that provides access to the service via subscriptions. Unlike other licenses, SaaS providers store your data on their server rather than yours; meaning you have no need for bulky hard drives at home and can work from anywhere in the world with an Internet connection.
SaaS is an awesome way to get your hands on the latest applications without having to worry about maintaining them yourself. All that’s required of you are those few seconds it takes for connecting, logging in- then voila! You have all the resources you need right at hand with just one click from anywhere, anytime! A SaaS provider manages access to their application – including security, availability, and performance.
Pros And Cons Of B2B SaaS
PROS OF B2B SaaS
SaaS removes the need for any organization to install and run an application on their computers or in their data centers. This eliminates any need for hardware acquisition, provisioning, maintenance, and software licenses installation and support, which come out of this model like a lightning bolt from Zeus’s beard! Other benefits include:
A. Payment Flexibility
While many businesses opt for the recurring subscription model to exercise better budgeting practices, you also have full control over when it comes time to stop paying those charges!
B. Usage Scalability
Cloud services like SaaS offer high Vertical scalability, which gives customers the option to choose what they want and pay for specifically.
C. Automatic Updates
SaaS providers make it easy to keep software updated and patched, saving any in-house IT staff a lot of hassle.
D. Customization
With SaaS applications, you can tailor the software to your needs and make it work seamlessly with other business apps.
E. Accessibility
The SaaS experience is great – you can access it from any internet-enabled device and location!
CONS OF B2B SaaS
SaaS also poses some potential risks and challenges – The security of your business data is at risk when you rely on outside vendors to provide software, keep it up and running, track billing accuracy.
A. Factors Beyond Consumer Control
In addition to understanding your provider’s SLA, customers should also understand the service disruptions that could arise from a security breach or other changes.
B. Consumers Lose Control Over Versioning
Customers will receive all updates whether they want it or not, and some may need extra training time.
C. Need To Switch Vendors
Some cloud vendors use proprietary technologies and formats for their files or databases which hamper easy migration from one provider to another.
B2B SaaS
B2B SaaS stands for business-to-business Software as a Service. It includes cloud-based software used particularly by businesses to complete various tasks, such as accounting and office productivity. Companies subscribe to B2B Saas solutions and usually pay monthly or yearly.
By 2022, it’s predicted that 86% of companies will be running on only B2B SaaS. In 2020 alone, public Saas hit $76 billion in revenue due to growth and market demand!
Also Read: 7 Advantages of a SaaS Business Model
Top 10 B2B SaaS Companies
In today’s fast-paced and competitive market, it can be tough to stand out. Luckily for these 10 growing B2B SaaS companies, the key was in their strategy because they crushed their growth numbers and crossed the ARR mark of $1 million.
1. Intuit
Intuit is a disruptor. They keep on disrupting themselves by seizing opportunities when they arise and being open to all sorts of new developments in the software market that complement their platform. The secret behind Intuit’s success is this willingness to be flexible, which has led them towards profitability with $6.8 billion revenue – more than ever before!
2. Salesforce
Salesforce is the market leader among CRM systems. Their tools manage customer information, optimize personalization and ultimately increase conversion rates all while remaining easy to use. CRMs are a staple in any digital marketing arsenal today but it was Salesforce that made them mainstream over the past two decades with 150,000 customers worldwide and revenue of 17.1 billion dollars for its 2020 fiscal year.
3. Shopify
Founded in 2006, Shopify is a Canadian company that provides websites, payments, shipping, and more for 1 million-plus online merchants around the world. Five years after going public (and becoming valued at $89 billion), they have high year-over-year growth rates thanks to their highly successful affiliate program. Approximately 26 400 ecosystem partners referred merchants to Shopify in 2019 which helped them grow so fast!
A good way to make better use of Shopify is by integrating it with other tools that you may use. For example, Xero or QuickBooks for finance, ZapERP for inventory management, and so on.
4. Atlassian
Atlassian software is ubiquitous in these days of technology. They’ve launched a marketplace with over 4000 third-party integrations for their users to choose from, and have just announced that the platform has generated more than $1 billion in total lifetime sales!
5. HubSpot
HubSpot is a marketing platform that offers integrated services such as inbound and sales hubs. It has offices all around the world, including Boston where it employs close to 4,000 people. They will continue their success with more customers looking for better digital marketing strategies amid this pandemic we’re experiencing.
6. Slack
Slack, a messaging platform for businesses and teams that was founded in 2012 has quickly become an essential aspect of companies’ communication. Within two years of launching, Slack set the record as the fastest-ever company to reach a $1 billion valuation with annual recurring revenue (ARR) at 200 million dollars by 2017. In 2018 it reached 5 billion dollar valuations with ARR surpassing 630 million dollars making it one of the most successful private tech startups ever!
7. Hootsuite
Hootsuite is a company that has helped businesses and people step up their social media games. With Hootsuite they can manage multiple accounts across all platforms- from Twitter to Instagram – in one dashboard, making it easy for the user to access. The company boasted over 18 million users in 175 countries, with 4.1 billion people using one or multiple platforms to communicate!
8. Mailchimp
Mailchimp specializes in email marketing and was founded back in 2001 and has since become one of the most successful providers on the market. They provide tools for creating targeted email campaigns that help businesses get their message out to the world. As of this year, Mailchimp has 12 million customers and a 60% market share in its industry.
9. ZapERP
ZapERP is one of the best ERP SaaS that offers inventory control features. You can manage your business at any location and from various devices with ZapERP’s powerful features like product management, order management, multiple warehouse management, and order fulfillment. It also comes loaded with Inventory Control Software Features such as Multi-Channel Management (Shopify, Amazon), Order Fulfillment, and multiple API Integrations for improved productivity and functionality.
10. Grammarly
Grammarly is a San Francisco SaaS unicorn – on a mission to combat spelling and grammar mistakes in anything you write. A saving grace for overworked editors, Grammarly’s plug-ins are available anywhere you type something – email clients, word processors, or browsers.
It was founded in 2008 and now helps over 30 million users improve their writing. Its latest coup was to secure $90M in funding for extending its natural language processing AI’s capabilities so that it can serve clients better.
In recent years, we have seen a rise in the number of SaaS companies. In 2016, 38% of companies used SaaS for at least 80% of their software needs. 2018 that number jumped to 51%, and by 2022 a whopping 86% will be reliant on the subscription model! According to a Forbes survey, 73% of businesses polled expect at least 80% of apps will be powered by software as services (aka SaaS)in 2021 – and those numbers are only going to go up. The B2B SaaS industry has been steadily growing for the past decade and is projected to grow exponentially in the next few years. With a head start, you can harness this growth by investing your time now into becoming an early adopter of these new concepts or services.
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