The Oracle is projecting 80% growth in SaaS margins. Here’s why.
SaaS cloud computing is changing how businesses view technology.
Toronto, Ontario – April 3rd 2017: Last month, the computer technology corporation Oracle revealed that their Q3 gross margin for SaaS and PaaS has reached 65% from last years 51%. What’s more is that Co-CEO Safra Catz expects it to increase to 80% over time. According to the company, there is one simple reason for this astonishing growth: cloud computing.
The Rise of the Cloud
Catz stated that their “pivot to the cloud is now clearly in full strength,” which is what’s boosting their bottom line. This is no surprise given how fast SaaS cloud for enterprise applications is revolutionizing the software industry and IT management all over the world. In today’s world of business, this branch of web app development is a mainstream necessity rather than a niche product. IDC predicts that the cloud software market will hit $151.6 billion by 2020, growing at a CAGR of 18.6%.
Aside from the growth of enterprise applications-as-a-service, including everything from CRM to HR, the growth of SaaS cloud computing is penetrating every sector, from the finance to e-commerce. The healthcare industry has been particularly receptive to SaaS benefits, resulting in web application development for managing patient reports, records, and appointments. Now that the technology is so widely available, smaller businesses can also begin integrating enterprise mobility initiatives that were previously too expensive to take on.
CloudTech predicts that the rising phenomenon of the Internet of Things (IoT) will soon also find its way into the as-a-service market, since the commonalities in infrastructure will give developers a valuable skill to offer clients. The speed at which SaaS applications advancing will necessitate new ways of approaching enterprise data centres and IT solutions.
Want to learn more about the growing market for IoT? Check out this blog post we wrote on the subject here.
Why Choose SaaS
The reason that SaaS applications are growing so much faster than the market for traditional software is that they allow developers to innovate more quickly, and thus get better solutions into clients hands as soon as they’re made possible. SaaS enables the industry to take advantage of connecting mobile devices, faster public networks, and the latest developments in web technology to create the ultimate user experience. Furthermore, they streamline IT departments by making enterprise data centres more efficient, freeing up resources for increased productivity.
Not only this, but the scalability of SaaS infrastructure is worlds away from the legacy systems that are being cycled out of use. This as an enormous benefit to modern enterprises and startups looking to grow their technology with their businesses over time. Frictionless solutions like SaaS cloud computing are the perfect match for the need for reliable, efficient, and cost-effective software that doesn’t limit what an organization can achieve.
Given the explosion of this market, SaaS developers are being pushed to offer the highest possible quality to their clients. The first indicators of a professional developer are overall user experience and app functionality. The server, storage infrastructure, and platform must all work together to speed, efficiency, and effectiveness from the client’s point of view. Most modern applications now come with real-time analytics that allow you to understand how the functionality is contributing to performance results. This is most useful when it comes to SaaS ecommerce, since these analytics can be used to design a more personalized shopping experience for the end user.
Do you have the next great e-commerce idea? Chat with our developers to brainstorm ideas on which web app options are best for you.
BluEnt’s SaaS cloud solutions focus on helping organizations accelerate business operations and maximize revenue by controlling administrative, operational and IT infrastructure costs. In the past, we have worked with mid-sized healthcare organizations, funded startups, and consulting companies to convert to the cloud and implement scalable solutions to communications, data management, and ecommerce challenges. Our team will continue to push the boundaries of what technology can achieve in the business world.
Formed in 2003, BluEnt specializes in proving custom websites, mobile apps, e-commerce, and internet marketing services for companies running an online dependent business or looking to develop tools to efficiently automate and monitor active processes in their organization. With 11 growing offices situated around the world, BluEnt is respected globally for its consistent quality of services and timely delivery of projects. We use our experience across industries and software applications to help enterprises derive maximum value out of their resources and investments.
Strategic Sourcing & Business Development Manager
BluEnt | +1 647 478 5230
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