Software as a service has been the most significant and fastest-growing market segment since 2019. Businesses are spending more than 50% on these cloud technologies than they did just two years ago, and they are growing more reliant on them.
Have you heard about the SaaS term? In fact, this is a model that is rapidly growing in use in our world today. According to a survey, at least 78% of applications used in responded businesses will be SaaS-based. The percentage is also estimated to rocket in the following years. People looking for their next service function or coming business venture can develop valuable knowledge and skills in this fast-moving market.
If you have so many queries around SaaS and the SaaS B2B company, this blog is helpful for you. The relationship between business and SaaS would not be unraveling anytime soon, so let’s realize the big picture, structure, and examples of this big technology trend.
In this blog, TechNinjaPro will explain the term SaaS and B2B SaaS companies in the world. We will also explore what a SaaS company is, what it sells, and how to follow its business model.
- What is SaaS?
- What is B2B SaaS?
- Benefits of SaaS products
- How to Follow the SaaS Business Model?
- Top 15 B2B SaaS companies in the world
What is SaaS?
SaaS is a software distribution framework in which a third-party service provider hosts the apps and makes them available to customers over the internet. The clients of SaaS are primarily businesses, not always be the end-users of the applications. The typical example of a SaaS service provider is Google. We use Google Driver, Google Docs every day. And almost all businesses are tracking their work with Google Analytics. Those applications are exactly SaaS products.
Business clients do not need to download or install the application on their desktop system by using the app. Instead, they can access the copy version of an app with the internet on their desktop, mobile at any time.
The applications’ source code is the same for all users, and when new functionalities or features are revealed, they will be updated to all clients. Concerning the data storage, depending upon the level of service agreement, the client’s information for each element may be stored locally, in the cloud, or with both techniques.
What is B2B SaaS?
Now, if you know the term ” SaaS” product, you possibly can guest the meaning of B2B SaaS. B2B presents for companies sell services for other businesses. Hence, B2B SaaS refers to companies that offer applications, extensions, add-ons to other businesses as a service. Their products are functioned to help businesses to operate more effectively and efficiently with extremely automatic technology.
B2B SaaS’s primary purpose is to cut down human resource expenses. Due to this value, a big number of companies are using that SaaS product to optimize their sales, marketing, and customer care service to improve store’s performance and generate more revenue. Besides Google, another popular B2B SaaS you might know is Slack, Microsoft, Adobe, etc.
Taking more about client success, this seems to be the important element of every successful business. Understanding that, e-commerce businesses invest strongly in customers’ care systems. Once their first-time buyers win, they will possibly become their loyal customers. Recently, you can see a significant number of B2B SaaS companies offer the customer with successful applications for business customers.
Among many B2B SaaS companies, some are stand out in recent a few years. To bring you the best thought of how those businesses look and what makes them successful, let’s see the following top 15 B2B companies in the last part of our blog.
Benefits of SaaS products
The essential benefit of the SaaS products is that they can be used only through an internet browser, with no need for any OS at any time anywhere. And as you know, the internet is widely used in urban areas all over the world.
It is unquestionable that SaaS products eliminate merchants’ need to install and run apps on their own devices. This means that they can save the cost of hardware, maintenance, and bug fixing. A significant amount of time on setting up and support is removed.
Flexible payment choices
Instead of spending one-time payments, clients using SaaS products can subscribe on a monthly/yearly basis. Moving to scheduled operating expenses will help merchant clients control operations better with expected budgeting. In addition, users can actively stop SaaS subscriptions whenever they need to save these recurring expenses.
Another core benefit of SaaS products is that all of them can be updated automatically from app providers. This update will not affect the business clients’ operations at all. Further, auto-update and managing paths help decrease the time and human resources of the in-house IT department in the business users.
How to Follow the SaaS Business Model?
SaaS businesses are built in three segments: setup, growth, and stabilization. Let’s have a look at each segment in the sections below.
The setup stage is where the base is built for a B2B SaaS company. This is where the founders notice the need for the products they plan to develop, categorize their target industry, and create the products. In this phase, they will also plan the campaign to bring the products to market. Developing an efficient marketing and sales strategy, considering choices for customer support, and organizing finances are also common in this segment.
After the SaaS products reach the market, the business experiences a perfect deal of growth. Because SaaS companies can grow their target market quite far, they can expect new clients to adopt the products, creating a sudden order for sales, marketing, and customer support teams. The business will need to act rapidly to capitalize on this timely opportunity to secure a loyal customer following.
Fortunately, this growth will be accompanied by added revenue. By reinvesting the capital back into services and products, companies usually have the resources required to meet their current user demands, like IT customer support service. The company will possibly start to see more money coming in as they acquire and retain more clients.
The business continues to attract new clients, but they do not have to take on more overhead costs with the added benefit. That is because they have reinvested into customer service software, product updates, and marketing automation. These softwares help SaaS companies keep pace with customer demand, create a happy user experience, and pursue an exit strategy.
Top 15 B2B SaaS companies in the world
According to a report, the following list is collected with the top 15 SaaS B2B companies offering software for many businesses worldwide. They are successful and popular for the products’ portfolio and be known as the best service providers in the market.
The leading name is undeniably Google, which owns up to 137 products focused on cloud content collaboration, Survey, Document creation, Digital Analytics, Videoconferencing, and more. Its most popular products are known as Google Drive, Google Forms, Google Docs, Google Analytics, Google Hangouts Meet.
Adobe is popular for its services and products portfolio in digital media, printing, digital marketing, and publishing software. The company owns more than 50 computer software products, including Adobe Photoshop, Adobe Illustrator, Adobe InDesign, Adobe Dreamweaver, Adobe Photoshop Lightroom.
Slack is a service that allows team members at a firm to be in constant contact through an instant messaging service. It offers solutions in Business Instant Messaging and productivity Bots. Slack’s main product, a collaboration and chat tool that allows for business internal messaging, AI bots, and video conferencing.
MailChimp is a popular marketing platform for small businesses. It offers solutions in email marketing, transactional email, marketing automation, and other marketing with typical products such as Mandrill, MailChimp, MailChimp All-in-One Marketing platform, and TinyLetter. MailChimp is a leading marketing platform that enables clients to set up email sending automatically and triggers-based in enhancing their marketing strategies efficiently.
Shopify is known as an application and platform provider and is widely used among e-commerce stores and retail POS. It offers three products such as Shopify, Shopify Plus, and Burst by Shopify.
Microsoft is another leading B2B SaaS firm that provides more than 100 cloud products variously used in different markets. Its leading software can be named: Windows, office, SQL Server, Azure, Exchange, SharePoint, Dynamics ERP and CRM, Xbox, Skype, and Windows Phone.
It is a web-based survey provider serving businesses of all sizes. SurveyMonkey is categories range from Online Form Builder, Survey, Enterprise Feedback Management, to market research services. It is widely used for data representation and analysis.
It is known as a mathematical computing software provider that is serving many product developers and engineering worldwide. The firm’s products are MATLAB, Simulink, SimEvents, ThingSpeak, and Stateflow.
HubSpot is a popular name with its diffusion in more than 120 nations to help clients attract, analyze, and nurture customers. It focuses on marketing, automation, CRM, sales performance management, help desk, and online course providers. HubSpot brings in various tools such as HubSpot CRM, HubSpot, HubSpot Sales, HubSpot Service, HubSpot Academy.
It is also a well-known SaaS company. The firm owns around 58 cloud-computing products. It has been working outstandingly in offering solutions for marketing, CRM, marketing automation, help desk, email marketing, and business instant messaging.
Avada is a new ecommerce solution provider in the market dedicated to helping businesses take their business to the next level with efficient solutions. Avada focuses on developing intuitive applications to solve complex business problems. It also focuses on consistently updating and adopting innovative technologies to optimize business solutions, support customers, and build and maintain a robust community.
It is another well-liked B2B SaaS company that provides security awareness training to help users solve IT security issues related to spear phishing, engineering, and ransomware attacks. It experienced more than 85% growth during the last 12 months.
Square is a popular SaaS credit card processing application that lets businesses easily accept credit payments without a cash register. Users buy the Square product and plug it into their phone, system, or tablet, and their device immediately transforms into a credit card processor. Its market capitalization is $99 billion.
14. Atlassian Corporation
Atlassian Corporation is another B2B company that provides products such as Jira and Confluence that improve software development, team collaboration, code quality, and project management.
Pluralsight is a B2B online education platform that analyzes different career skills and offers courses that teach clients how to use technology based on their assessment scores. Pluralsight’s market capitalization is $3 billion.
There is one thing many if not all hyper-growth companies practice – Sales Enablement. Haven’t heard of it? Well, your competitors have and that’s why you are getting spanked! Sales Enablement is the process of aligning people, processes, content & priorities across entire sales teams and departments. SalesHood helps onboard sales reps faster, aligns marketing and sales departments, refine sales pitches, and helps sales teams communicate, develop and improve, at scale. Enablement is absolutely critical for modern organizations and will help you close more deals.
If you are running e-commerce stores and need to gain more businesses as your clients, B2B SaaS products are highly recommended for you. With this blog, TechNinjaPro hopes that you can find more information about SaaS products.