The rapid growth of on-demand services in the consumer world (e.g. Uber, Deliveroo, Netflix etc.) have helped to spark the rise of Software-as-a-Service (SaaS) solutions in the business environment. And, as the expectation for on-demand shows no sign of slowing down, SaaS is helping to meet a need for businesses of all sizes.
Today, with everything required to make SaaS a success now aligned, the next 12 months could be transformative for this type of technology. But just what has powered the rise of SaaS to date, and what is going to catapult it to the next level?
Cloud computing has proved to be one of the most important technological innovations of recent years. Take the hosted desktop for example. While available before the growth of the cloud, in many cases it was out of the reach of smaller businesses. But with cloud-hosted desktops, companies no longer have to worry about all the technology going on in the background. That makes them much more appealing, and, because they don’t require any up-front infrastructure costs, more financially viable.
Furthermore, most analysts agree that cloud usage will increase in 2018. In fact, according to research, 50% of all IT spending is going to cloud-based services this year and the industry will be worth $390 billion by 2020.
There is no doubt that security concerns have thwarted SaaS adoption. What’s more, the more data is moved to the cloud, the more people worry about cybercrime. But moving to the cloud doesn’t put your business-critical information at any more risk. In fact, with robust cloud encryption now available, storing data in the cloud can be safer than storing it onsite. Today, despite the headlines, in almost all cases, where a hack has happened it has been down to a poorly designed and maintained security system – not the weakness of the cloud. And the message is getting through, with 56% of IT managers citing improved security as a primary motivation for moving to the cloud.
Data protection requirements
In response to the threat of data breaches, the General Data Protection Regulation (GDPR) is coming into force this year. To ensure compliance and keep customers happy cloud-vendors will have to conform to global standards of operation. For many businesses, SaaS gives them a way of handling their data without worry.
Flexible working patterns
Evolving attitudes have changed the traditional working environment. Research predicts that in the next four years, 1.87 billion people will be mobile employees. That’s 42.5% of the total global workforce. What’s more, 85% of people now expect to see an increase in mobility in their future workplaces. So, the success of most businesses will depend on their ability to create mobile-ready spaces and implement the right technology. Here again, the use of SaaS that can be accessed anywhere, anytime, on any internet-enabled device becomes key.
Superfast mobile internet
One of the biggest barriers to SaaS is a slow internet connection. But that could soon be yesterday’s problem. The next evolution in wireless communication, 5G is a hot topic in tech circles. With much faster upload and download speeds, the combination of fifth generation cellular and cloud technologies is set to be game-changing.
The Internet of Things (IoT)
As all aspects of our lives become more and more data-driven, the potential of big data is ready to be exploited. And, businesses that are not yet using SaaS to provide them with the most up to date and precise data, from multiple sources are likely to fall behind. That’s why, savvy SMEs are now using SaaS to make data sharing a priority.
Moving away from on premise hardware and applications, businesses everywhere are starting to realise the benefits of cloud-hosted services. With secure, fast and reliable access on any device, find out more about how Cloud Geeni can offer you new and flexible ways of working.
 Bain & Company
 Strategy Analytics