The SaaS market continues to see explosive growth and has evolved at an astonishing pace. The figures that reflect the size of the cloud market are impressive.
And it’s not just the revenues being generated and the degree to which SaaS apps dominate the use of software, but the benefits to cloud services customers.
However, while this may all seem to suggest a very healthy period for the industry, indications are sufficiently advanced to suggest that the market is maturing.
Last year we noted that the marketplace was crowded and becoming increasingly commoditised and this trend has continued to develop.
Further evidence of a maturing market can also be seen in the development of The BVP Nasdaq Emerging Cloud Index, listed as EMCLOUD. This is the next generation of The BVP Cloud Index, designed to track the performance of emerging public companies in the sector.
From the vendor/service provider side there is more competition, with many vertical products of similar capability, performance and value vying for subscribers from the same pool within a specific industry.
From the subscriber side there are many similar products from which to select, making it hard to differentiate vendors and products.
And from the perspective of investors, where traditional business models in non-tech sectors of the economy are being severely disrupted, often by compliance designed to promote deep and lasting change, tech continues to be something of a golden egg-layer.
Consequently, market maturity notwithstanding, it seems that the opportunity to secure investment is now stronger than ever. It appears that there is no shortage of cash to pump into the sector for Seed, A, B, C and D Series funding, because there is a widespread expectation that investments in tech are likely to have better yields.
Looking beyond the confines of SaaS and the cloud in general, there is an air of uncertainty in the operating environment (but what else is new!?). A survey of economists by the US National Association for Business Economics puts the spectre of a looming economic recession at 60%; an American sneeze could give the entire global economy a cold, tipping the scales from a slowdown into a downturn.
With over 10 years of SaaS Marketing experience and the first marketing agency specialising solely on the SaaS industry, Xander Marketing is wired to the market. Add in our interactions with SaaS company owners and principals, and this has shaped our views.
For 2020 we see a strengthening of the three key trends we identified for 2019:
To help owners and key stakeholders in SaaS ventures to market their businesses more effectively, we have come up with some suggestions. Download 7 Smart Ideas to Market your SaaS Business in 2020 here.
Xander Marketing is the outsourced marketing partner of choice for B2B SaaS businesses globally that need more customers, leads, website traffic and to build their brands.
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