June 25, 2018

Why Subscriptions Have Eaten B2B Software

Why Subscriptions Have Eaten B2B Software

There was a time, not that long ago when we watched in awe as software took over the world. Today it’s not a matter of if an industry has shifted to digital, it’s a question of who embraced the transition in time to avoid being left behind.As software ate the world, eventually the market needed to serve up some new, tastier snacks. Today it’s the software-as-a-service (SaaS) model that’s dominating markets. It’s changing the way we consume our data, the way we shop, and the way we do pretty much everything. Don’t believe that subscriptions have eaten software? Take a look at these five stats why subscriptions have eaten B2B Software:

1. SaaS revenue will reach $100 billion by 2020: Most analysts estimate SaaS revenue will near $60 billion for 2017, a year-over-year growth of 23%. Gartner forecasts that number will nearly double over the next few years.

2. 73% of organizations say nearly all their apps will be SaaS by 2020: Subscription SaaS services already account for 50% of the business apps companies are using today. In a couple of years, every application you use to conduct business will likely be a SaaS product.

3. There are nearly 5,000 SaaS companies on AngelList: It would be more if so many hadn’t already been snatched up. SaaS continues to be one of the hottest investment categories.

4. Salesforce is making $10 billion a year: Even established SaaS companies, like Salesforce, are skyrocketing in revenue and valuation. Salesforce announced recently that it had hit a $10 billion annual run rate, the fastest enterprise software company to ever do so.

5. 86% of users say they prefer SaaS to a desktop application: What’s up with the other 14%? Regardless, it’s clear that adoption is spiking.Subscriptions are eating up the software industry faster than we can keep pace with, and soon they will have completely taken over. Just as industries that didn’t embrace digital early enough suffered, software companies that haven’t already embraced SaaS may find themselves in a similar situation.The question is: Where are you placing your bets?

These are why subscriptions have eaten B2B Software.