SaaS Trends in the Wake of the Pandemic

Gartner, Inc. has recently compiled data showcasing the economic growth of public cloud revenue. The project, titled Worldwide Public Cloud Service Revenue Forecast, highlights that Software as a Service (SaaS) is expected to grow to $116 billion this year as a result of the scalability of subscription based software. This information, however, does not reflect the impact the 2020 worldwide pandemic has had on the global economy.

For some time, SaaS has been the most successful element in the cloud market, and it is indisputably growing even during this chaotic time. Today, many companies and consumers alike are turning to cloud service and its enabling technologies to fuel the massive shift to work remotely. Public cloud service has done an outstanding job of meeting the unprecedented and unplanned demand in a manner that was impossible just a few years ago.

Although the Covid-19 pandemic has presented a harsh, volatile environment, it is critical to analyze current SaaS trends and how these can impact businesses after social distancing guidelines have ended.

March 2020 – The U.S. Workforce is Compelled to Transition

In a matter of a few weeks, the novel Coronavirus Pandemic upended global business. From small businesses to multinational corporations, enterprises around the world were obligated to shift their operations and work remotely. In light of all of this cloud-based computer services have surged in popularity. Praised for their flexibility, security and reliability, cloud computing has emerged as one of the few prevailing businesses during the pandemic. The use of computer-based systems have been essential for companies to maintain their operations, but absolutely necessary in their ability to continue serving customers.

Unsurprisingly, once the shelter-in-place order was issued, cloud computing was equally an effective and beneficial tool to use. Without it, a world without real-time document collaboration and Zoom would be nonexistent; ultimately leaving millions to use email for collaborations and Microsoft office for documents. Nonetheless, the sudden and unprecedented boom SaaS companies are experiencing is not expected to last forever.

What the pandemic has shown many businesses is that there is a critical need for cloud-based solutions. Although the way businesses are managed has changed since the Covid-19 outbreak, the reality is that these newfound methods are not expected to disappear once things begin to go back to normal.

Instead, these new business methods present new needs and newly discovered issues that will need to be resolved with cloud computing. Additionally, consumers have begun to find digital accomodation as a new norm and are also expected to be more open to acquiring SaaS solutions in the future.

The Current State of SaaS Amid the Pandemic

SaaS has been a key trending component across the cloud market because it has been able to leverage new technologies in order to make a hassle-free process. Public cloud service has been phenomenal during this time because it has allowed everyone access to information. Although the pandemic has presented a volatile environment, it has greatly impacted Software as a Service in the following ways:

There Has Been a Surge in the Use of SaaS Tools

The tech giant, Microsoft, has recently reported a 775% increase in the use of their cloud services since the shelter-in-place orders were issued. Many other Software as a Service products, like Zoom, Slack, and Skype have also garnered great importance amidst this turbulent time. These cloud services have digitally revolutionized the workplace in an efficacious manner. The transition to work remotely on such a massive scale would not have been possible with the server-led infrastructure existing 15 years ago.

Another success story involves the telemedicine newbie, Livi Connect. This company is impacting the medical field directly and is one of the most downloaded applications today. SaaS companies meet the global need for remote assistance at a time where an infectious disease has ravaged entire communities.

Privacy Concerns and a Newfound Focus on Cybersecurity

With the rapid growth seen by some SaaS providers, serious privacy concerns have been raised. One of the most popular companies facing scrutiny is Zoom. The video conferencing company is being sued in a class-action lawsuit by overstating their privacy standards.

As remote work and collaboration becomes normalized, many cloud service companies will need to be adjusted since cybercriminals have found it easy to exploit vulnerable home-based networks. Fortunately, SaaS solutions may have a role in obtaining reliable software that will ensure productivity and safety.

The Future of Cloud Computing

In the midst of the pandemic, some companies have made the decision to delay business until the markets appear more stable while others have made the decision to temporarily downgrade their growth to preserve their business. Even in these uncertain times, one thing remains the same: current market trends will not last forever. For this, it is important to begin planning for business ventures post pandemic.

Even in a global pandemic, Moore’s Law is accurate. Research indicates that the pandemic has actually accelerated cloud adoption for many businesses. As companies move more of their essential business online, they will look for trusted cloud vendors at exponential rates.

For enterprises that have already integrated cloud-based systems in their businesses, they can experience one of two outcomes:

  1. Companies currently experiencing a high in business will need to work hard to retain their production as much as possible.
  2. Companies experiencing a downfall should remember that competitors are also experiencing an unfavorable market.

Speak to a SaaS Experienced Attorney

Companies are tasked with developing a business continuity strategy for the time after the pandemic. Research indicates that a transgression to cloud services allows companies the opportunity to recover from the pandemic more quickly. To build resilience, some businesses are turning to flexible utilities that will downgrade and upgrade as their business adapts to the wavering market.

Technology Attorney John P. O’Brien understands that during the Covid-19 pandemic, the need for resilient, robust, secure, and flexible infrastructures has become indispensable. When considering obtaining a cloud-based computer software, seek the legal support of an attorney with the right experience.

Attorney John P. O’Brien represents buyers and sellers of cloud-based SaaS services. Whether making a purchase or seeking to bring an application to market, Attorney O’Brien is prepared to guide your venture. Consider contacting Attorney John P. O’Brien today and schedule a no-obligation consultation.