Concerns regarding the privacy and security of data have been the biggest factor that has refrained organizations from adopting the SaaS solutions. Companies with mission critical data have preferred the traditional on-premise legacy systems to manage their data. Enhanced data protection for such mission critical and sensitive data would be a differentiating factor for SaaS vendors. This differentiation would serve as a huge opportunity for large organizations to adopt SaaS-based solutions and further strengthen its market.

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According to a new market research study titled ‘Software as a Service Market to 2025 – Global Analysis and Forecasts by Deployment Model, Applications and End-user’, the global software as a service market was valued at US$ 34.78 Bn in 2015 and is estimated to reach US$ 418.92 Bn by 2025. The report highlights the trends prevalent in the global SaaS market and the factors driving the market along with those that act as deterrents to its growth.

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The global Software as a Service market is bifurcated based on deployment model as: private cloud, public cloud, and hybrid cloud. Furthermore, the global SaaS market can be further divided by applications into ERP, HRM, CRM, supply chain management (SCM) and manufacturing and operations among others. Additionally, while considering on the basis of end-user SaaS can be further classified into small & medium enterprises (SMEs), BFSI, large enterprises, government, and others (such as hospitality, retail, etc.).

Currently, Software as a Service model has seen significant adoption by large organizations. SaaS has various applications for larger enterprises such as the horizontal SaaS caters to the needs of a particular community of all organizations. A company hiring these solutions (HRM, SCM, CRM and ERP) via the SaaS vendor can benefit to a great extent while maintaining the privacy of their own data. This allows the companies to focus on their core business.

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In 2015, Brazil led the software as a service market in South America (SAM), and is expected to continue its dominance by expanding at a CAGR of 29.4% during the forecast period from 2016 to 2025. Brazil is expected to witness rising adoption of software as a service model due to rise in the number of small and medium scale organizations. The report profiles key players such as ADP LLC, Amazon.com, Google, Inc., IBM Corporation, Microsoft Corporation, Oracle Corporation, Inc., SAP SE, Symantec Corporation, Fujitsu Limited and Workday, Inc.

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