The emergence of the Software as a Service (SaaS) market over the last decade has altered how businesses throughout the world use software. SaaS is a paradigm of software delivery that benefits all stakeholders: businesses, customers, and investors.
The customer is not required to purchase software or hardware, and everything is managed remotely, in the cloud, without adding to the business’s budget. If a customer is dissatisfied, the service can easily be cancelled. For entrepreneurs, the subscription model provides certainty, allowing you to run and expand your business in a more secure, planned, and sustainable manner.
For investors, predictability of receivables flows, which is a model attribute, equates to risk mitigation. National businesses are becoming more receptive to SaaS-based solutions, and the SaaS B2B market is maturing. There was an initial wave of national enterprises that established themselves as relevant and operationally sophisticated, attracting successive rounds of capital.
The total revenue generated by SaaS companies only this year goes beyond $100 billion.
What are some of the top 20 B2B SaaS companies in the world?
G Suite is a suite of productivity and collaboration tools, as well as cloud computing and software as a service (SaaS) cloud-based applications and products, including Gmail, Calendar, Hangouts, and Documents.
The G Suite contains communication tools such as Gmail, Calendar, Currents, and Hangouts, as well as collaboration capabilities such as Drive’s Documents, Sheets, Presentations, Keep, and Forms. Additionally, Sites, Jamboard, App Maker, and Vault are included. functions as trialware, granting the user 14 days of access to the whole software package. After the trial period expires, you will be charged a monthly fee of up to $5 per account.
HubSpot is a cloud-based software firm specialising in sales, inbound marketing, and customer support. The most often used product is a free CRM that includes email monitoring, prospect tracking, meeting scheduling, and live chat functionality. Brian Halligan and Dharmesh Shah founded HubSpot in 2006 at MIT (Massachusetts Institute of Technology) in Cambridge, Massachusetts, USA. Eventually, the company acquired Oneforty (a marketplace for Twitter applications) and introduced new software that enables sites to be customised for each visitor.
HubSpot’s free CRM, inbound marketing hub, sales hub, service hub, and content management system hub are among the company’s products. HubSpot’s pricing structure is tiered, with the free element of the CRM and the top four software packages demanding a monthly fee.
Along with regular files, Dropbox enables you to create, save, and share cloud-based content. Dropbox’s basic principle is to centralise all of your files on your computer by creating a single, unique file. Due to the fact that all files are saved in the cloud, they remain synced and up to date regardless of the device or location from which they are accessed. With a market capitalization of $10 billion, it was dubbed the world’s most valuable start up.
Salesforce is a cloud-based software company that specialises in customer care, marketing automation, and application development. Marketers may operate more efficiently by collecting customer data and favourably interacting with them when they utilise the programme. Salesforce is a cloud-based software firm that sells products such as Sales Cloud, Service Cloud, Marketing Cloud, and Commerce Cloud.
Uber Technologies, Inc. is a San Francisco-based car-sharing company. It offers welcome services, peer-to-peer sharing, and a micro-mobility system that includes bicycles and electric scooters. Uber and the Marin Transportation Authority recently announced a partnership to migrate to a SaaS business model (TAM).
Uber will run a B2B SaaS-based on-demand service for Marin County in the San Francisco Bay Area. Through a new tool called Marin Connect, Uber users may now reserve Marin Transit’s six-seat wheelchair accessible vans. In September 2016, Uber launched its first autonomous car service in Pittsburgh for a limited number of passengers. Additionally, Uber Eats is available, which is a food ordering and delivery service driven by its drivers.
Uber’s pricing strategy is dynamic, which means that prices fluctuate based on supply and demand, including peak prices, start-up prices, and route-based pricing. Uber will charge a membership fee based on usage in Marin County to operate the software that permits car booking. This service will be gradually expanded to new locations.
Slack is a commercial communication application developed by Slack for enterprises with a distributed workforce. It has several IRC-like features, such as persistent chat rooms (“channels”) organised by subject, private groups, and direct messages. The programme is meant to give everyone on the team a unified view of progress and purpose, and it also allows you to add papers and videos.
Slack offers a variety of applications for remote work, distance education, engineering, financial services, sales, information technology, marketing, support, human resources, project management, and media.
ServiceNow is a software-as-a-service company that specialises in developing solutions that foster an environment favourable to greater employee productivity. It enables firms to manage internal digital workflows. ServiceNow is a business-to-business workflow management software solution for small and medium-sized businesses. ServiceNow provides solutions for IT service management, IT operations management, IT business management, and IT asset management. ServiceNow is available for trial as well as for purchase, with annual subscriptions starting at $10,000.
ServiceNow is headquartered in Santa Clara, California, and is forecast to generate revenue of $3.5 billion in 2019. Around 11,000 individuals are employed by the company.
8- Amazon Web Services
Amazon Web Services (AWS) facilitates the cost-effective, dependable, and secure development of software-as-a-service (SaaS) solutions for customers. By providing marketing, technical, and go-to-market (GTM) support, the AWS Partner Network (APN) aids enterprises in developing a sustainable AWS-based business. In July 2002, the AWS platform was released with a limited set of early-stage tools and services. Amazon officially relaunched the service on March 14, 2006, with three initial cloud storage options: S3, SQS, and EC2.
AWS provides a range of goods and services, including analytics, application integration, blockchain, cost management, business applications, developer tools, the Internet of Things, machine learning, end-user computing, media services, and quantum technologies.
AWS charges users based on the services they consume. Amazon offers an AWS calculator for estimating contractual services.
Shopify, headquartered in Canada, is a worldwide firm that provides an e-commerce platform for online shops and retail point-of-sale systems. To make running an online business easier, online seller receive a package of services that includes marketing, customer engagement, shipping, and payment processing. Shopify was founded in 2004 by Tobias Lutke, Daniel Weinand, and Scott Lake. They initially sought to establish Snowdevil, an online retailer of snowboarding gear, but were disappointed with the e-commerce products offered. Lutke, a computer programmer, responded by developing his own using the open source Ruby on Rails web application framework. Snowdevil was relaunched as Shopify in June 2006.
Shopify is a business-to-business e-commerce platform aimed at small enterprises wishing to establish a low-cost online store.
Shopify offers a full suite of ecommerce services, including domain registration, web hosting, a web store builder, templates, and a customer store tool.
Wix is a website builder that simplifies the process of creating, designing, administering, and developing websites. Users can create HTML5 and mobile websites using online drag-and-drop tools. Additionally, Wix offers social media plugins, internet marketing, e-commerce, email marketing, contact forms, and community forums to webmasters.
Avishai Abrahami, Nadav Abrahami, and Giora Kaplan, three Israeli developers, founded Wix in 2006. When the Abrahami brothers and their close friend Kaplan tried to create a website for another business, they quickly realised that creating a new website was far too complicated and expensive – and thus founded Wix to enable anybody to easily make a free website without any programming or design skills.
Wix is a business-to-business (B2B) website builder that enables merchants and small businesses to create their own websites.
Wix’s services include website templates, a website builder, a logo maker, an app marketplace, domains, commercial email, web hosting, and email marketing.
It works on a freemium model, that means that its core product is available for free to consumers. The free version, however, has significant limitations, and clients who wish to use the majority of the features must upgrade to the premium plan, which begins at $29/month.
The company is headquartered in Tel Aviv, Israel, and had revenue of approximately $603 million in 2018. Nearly 3,000 individuals are employed by the company.
MailChimp is a comprehensive cloud-based marketing platform with an email marketing service built in. MailChimp is a marketing automation platform that specialises in email marketing, audience administration, brand creation, campaign management, and analytics. MailChimp is a freemium service, which implies that while certain services are available for free, users must upgrade to access all benefits. MailChimp offers three tiers of paid membership: Essential, Standard, and Premium. The monthly fee for this plan is $999.
Square is an American commerce services organizer and digital payment company that aims to unify merchants’ and businesses’ payment processes.
Square was launched in 2009 by Jack Dorsey and Jim McKelvey. Jack was inspired to create a simple payment process after Jim was unable to complete a $2,000 sale of his glass faucets and accessories due to his inability to accept credit cards.
Square’s primary feature is the Square Reader, which transforms your smartphone into a point-of-sale system capable of accepting credit cards simply by connecting to the audio input on the device. Additionally, we offer delivery and pickup, formal invoices, payment systems, automated billing, and sophisticated reporting capabilities.
13- Adobe Creative Cloud
Adobe Creative Cloud is a suite of over twenty desktop and mobile design, multimedia, and user experience tools. Businesses interested in honing their website design, video editing, photography, or art skills can benefit from the software. Adobe Creative Cloud is a business-to-business software-as-a-service platform that provides enterprises’ design teams with the most advanced design tools available. The software package functions in a trialware fashion. Subscriptions begin at $52.99 per user per month.
Orderhive is a SaaS inventory management, billing, and tracking software package that automates the management of a growing e-commerce brand’s operations. It was designed with the issues that online merchants have when conducting back-end chores such as inventory management, shipping, inventory updates, and returns in mind. The platform’s several products include e-commerce automation, order administration, product list management, warehouse management, invoicing, shipment management, and reporting for Amazon FBA inbound shipping.
Marketo is a subsidiary of Adobe that develops and distributes SaaS marketing automation software used to manage various marketing operations. Additionally, the service includes SEO and content production. Marketo is a B2B marketing software company that serves businesses of all sizes, from fast-growing startups to established enterprises. Marketo’s price plan is based on the quantity of contacts a business has in their CRM.
Splunk is a pioneer in providing software as a service (SaaS) for searching, monitoring, and analysing machine-generated large data via a web-based interface. It enables businesses to make more informed and timely decisions by offering a real-time perspective of their operations. Splunk is a provider of business-to-business software solutions for startups, medium-sized businesses, and large enterprises of all sizes. Splunk offers a variety of products, including cloud, IT service intelligence, insights into AWS cloud monitoring, application to infrastructure, enterprise security, user behaviour analysis, SignalFX infrastructure monitoring, FX AMP microservices, and IoT industrial.
Celonis digitally maps organisations’ business processes and enables real-time analysis of hidden process knowledge via process mining. Celonis is a unicorn in the international SaaS business, with over 1,000 workers and headquarters in Munich and New York. Celonis was started in 2011 by Bastian Nominacher, Martin Klenk, and Alexander Rinke, all of whom were students at the Technical University of Munich.
Jörg Beyer and André Christ created the Bonn startup LeanIX in 2012. Businesses can do a comprehensive inventory of their IT landscape using their enterprise architectural management technology. LeanIX raised around EUR 66 million in July 2020 through a (Series-D) financing deal headed by Goldman Sachs. According to the company’s own data, the company is growing at a rate of more than 100% each year with customers such as Adidas, Atlassian, Bosch, and Vodafone. 60 of the 240 employees are based in the United States, where the company now generates 40% of sales.
Felix Eichler, Hartmut Hahn, and Kajetan Uhlig enter the ranks of Germany’s successful founder trios. Userlane GmbH, which she started in 2015, provides a SaaS solution that streamlines the adaption and implementation of new IT solutions for businesses. The Munich-based company now employs more than 80 people and secured EUR 10 million in growth finance in mid-2020 to accelerate internationalisation in Europe and the United States.
Contentful is equally aimed at SMEs and large organisations. The company is growing both through large corporate customers like Mailchimp, Heineken, Atlassian, and Spotify and through the continually growing number of smaller teams and businesses that rely on the ability to map a consistent customer experience across several digital platforms.
Finally, a few words concerning SaaS businesses…
While the software-as-a-service model delivers great value to users due to its ability to adapt, success in this sector may be rather tough unless you have a firm grasp on the fundamentals. It is not for the faint of heart to pursue a career in technology marketing. Additionally, as previously said, around 86 percent of organisations will function entirely on a SaaS model by 2023.
That is, whether you want to start your own SaaS business or expand an existing one, you must be better than your rivals. Familiarize yourselves with the experiences of SaaS organisations on this list in order to understand how they became so well-known and successful!