Software as a Service: Borrowing Software from the Cloud

Based on what you can do with the cloud, i.e. remotely located computers that use an independent server system to store data and run applications, we can describe many cloud services available today. One of which is the Software-as-a-service model, more popularly known as – SaaS. The whole myriad of Google Apps is a fine example; Google Mail, Google Docs, Google Talk. These are free for the user, but usually the application is rented, while application software is installed and operated from a cloud network. Monthly fees for this type of service are considerably lower than a price of a licensed copy of an application. Plus, no additional investment needs to be made in the machinery, in order to run everything smoothly.

Clients love SaaS for its simple upkeep, all new features are automatically added online, bugs and errors are treated faster than with IT staff, all the data backups already exist on the cloud, and moreover, the functions are independent of your operating system. All software application functions are accessed using only a browser and an internet connection.

Book a demo today to see GlobalDots is action.

Optimize cloud costs, control spend, and automate for deeper insights and efficiency.

Book a demo today to see GlobalDots is action.

Market Share: Only 4%

However, all benefits considered, and the investment involved and all the giants that set up the market, e.g. Salesforce, Oracle, SAP, Microsoft etc., SaaS still only accounts for the 4% of sales compared to packaged software.

Comparison of SaaS and packaged software sales from 2010 to 2015,showing growth in SaaS as a small percentage of total sales.
SaaS sales compared to Software Package sales (infographic by Staff.com)

According to Forrester, the SaaS software market will grow by 25% this year, to $59 billion. By 2014, they expect, it is to grow further to $75 billion – source – TechCrunch.

SaaS software market is to grow simultaneously with the number of smart computing products, far faster than the overall software market. Smart computing implies apps that provide direct access to to data that is used for decision making purposes.

US: The Leading SaaS Tech Buyers

US tech buyers are expected to make the biggest adjustment, as the US economy invests in technology, reaching a strong demand for new mobile, cloud and smart technologies. The market is to expected to grow by 5% in 2013, and by 6-7% in 2014. Europe will fall behind a bit due to its economic problems, and in the East-Asia Pacific, Japan will slowly but surely pick up from the Fukushima disaster, and China will see a rise in this market, after a 2012 slowdown; source – OpenView blog.

Salesforce is highlighted as the top company in the SaaS industry.
Top SaaS companies: Salesforce, SAP and Oracle

The number of mobile Web users all over the world has now topped 1 billion, and mobile market is expected to drive more than 50% of all IT market growth. This will set new challenges to SaaS software developers. As well as considering the growing usage of tablets.

SaaS Companies to Watch

The year 2013 brought many presumptions about who will continue, in terms of business companies, to dominate the SaaS market, and who is yet to arise. We bring a short sum-up list of the SaaS companies to watch from the Computer World:

  • Salesforce: no.1 player in the SaaS market, a pioneer in the SaaS market
  • SAP: the German software giant, came big to SaaS during the past year
  • Oracle: Oracle’s core expertise is in human capital management and databases
  • Microsoft: more moves into SaaS market are expected
  • Workday: SaaS financials and HCM vendor
  • Intuit: millions of small businesses use Intuit’s QuickBooks software
  • Zuora: provides billing, e-commerce and finance modules
  • Single sing-on for SaaS: Okta, Ping Identity, OneLogin
  • Cloud ERP for manufacturers: NetSuite, Plex Systems, Kenandy

Latest Articles

Vulnerability Assessments vs. Penetration Testing: Key Differences, Use Cases & Best Practices

They’re not interchangeable. A vulnerability assessment identifies known flaws at scale. A penetration test mimics an actual attacker probing for impact. Yet many teams treat them the same. They substitute one for the other, check a compliance box, and move on as if they’re covered. They’re not. And that gap shows up later in real-world […]

Ganesh The Awesome
7th July, 2025
Web Application Firewalls (WAFs): The Evolving First Line of Defense in Cloud Security

Modern applications are built for speed, not simplicity. Containers, microservices, and cloud-native deployments have blown up the security perimeter. Traditional tools can’t keep up with this complexity. That’s why Web Application Firewalls (WAFs) matter. But the WAF of 2025 isn’t just an appliance sitting in front of a static website. It’s a flexible, cloud-aware security […]

Ganesh The Awesome
7th July, 2025
What is an API Security Audit?

 In January 2024, a misconfigured API exposed 650,000 private messages. These included passwords and internal communications. No exploit chain. No zero-day. Just a public-facing endpoint with no authentication. This wasn’t an isolated incident. From T-Mobile and Twitter (now X) to Kronos Research and the US Treasury, attackers have consistently used APIs as entry points. They […]

Ganesh The Awesome
26th June, 2025
The Ultimate API Security Checklist for 2025

APIs are now the top attack vector in enterprise apps. In 2024 alone, breaches tied to APIs cost an average of $4.88 million, and that number is rising fast. Attackers exploit gaps in API authentication, input validation, and outdated endpoints to compromise systems. Legacy controls no longer suffice, and the OWASP API Top 10 outlines […]

Ganesh The Awesome
26th June, 2025

Unlock Your Cloud Potential

Schedule a call with our experts. Discover new technology and get recommendations to improve your performance.

    GlobalDots' industry expertise proactively addressed structural inefficiencies that would have otherwise hindered our success. Their laser focus is why I would recommend them as a partner to other companies

    Marco Kaiser
    Marco Kaiser

    CTO

    Legal Services

    GlobalDots has helped us to scale up our innovative capabilities, and in significantly improving our service provided to our clients

    Antonio Ostuni
    Antonio Ostuni

    CIO

    IT Services

    It's common for 3rd parties to work with a limited number of vendors - GlobalDots and its multi-vendor approach is different. Thanks to GlobalDots vendors umbrella, the hybrid-cloud migration was exceedingly smooth

    Motti Shpirer
    Motti Shpirer

    VP of Infrastructure & Technology

    Advertising Services