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What’s a SaaS application?

Software-as-a-Service (SaaS) is a runtime environment approach in which a public cloud service provider hosts and makes programs accessible to end-users via the web. A third-party central server may be hired by an independent software vendor (ISV) to operate the application in this approach. In some cases, such as with Microsoft, the cloud
provider is also the software vendor. A Software-as-a-Service (SaaS) application is software that is licensed utilizing the Software-as-a-Service (SaaS) marketing strategy. SaaS is a model for software delivery and maintenance in which developers don’t offer lifetime licenses or wait till the next year’s iteration to make feature upgrades. Instead, businesses provide Software-as-a-Service (thus the term), usually through a subscription model.

The SaaS Market in the UK

SaaS is big business in the UK and the market for software delivered as a service is expanding rapidly, both in B2B and B2C markets.

Multiple lockdowns during the COVID-19 pandemic led many companies to seek business-to-business (B2B) software-as-a-service (SaaS) solutions to keep their remote employees connected and move the business forward. In 2022, the surge in interest for B2B SaaS tech shows no signs of slowing down.

Software as a service in the public cloud market generated approximately 10.2 billion U.S. dollars of revenue in 2021 and is likely to reach £10.9 billion ($15.03 billion U.S.) by 2025. At the same time, the global SaaS market is expected to grow by more than 40% to an estimated £263.3 billion ($362 billion U.S.) by 2022.

SaaS is one of the UK’s largest ICT markets, with the vast majority of enterprises realizing the value of investing in newer ICT segments to accelerate their productivity and growth.

While all the big enterprises in the UK have already implemented adequate tech tools for a while now, small and medium-sized enterprises have also started to direct their attention towards the right digital tools to optimize their processes.

The rising tide of software as a service has created an industry of products and services that require subscription-like recurring payments and the mindset of UK customers has also shifted from one-off customers with a one-time purchase, to active, recurrent customers that adopt a recurring purchase routine.

Additionally, the vast majority of UK enterprises rely on mobile connectivity of their workforce, which is an ideal setting for SaaS providers continuing to develop their solutions for usage on tablets and smartphones, in order to keep pace with this growing demand.

Best prospects for SaaS companies in the UK have focused around: Artificial Intelligence, Robotics, Cybersecurity, the Internet of Things, Virtual Reality and Augmented Reality, Fintech, and e-Health.

In Conclusion

Although cloud apps aren’t the right fit for every organization, the SaaS model has swiftly gained traction in the UK and even globally due to the many advantages it provides to both users and developers.

Many criteria, including price and tech stack, will differ depending on the specialization you’re pursuing. However, there are a number of well-known firms in the UK that are producing significant money from their intriguing SaaS applications, and you may conduct a study on them to learn more.

Metricoid Technology Solutions Private Limited with a team of industry experts with over 12 years of experience in digital IT and SaaS development is a development consulting partner that can be trusted to lead and collaborate on the growth of a startup while keeping costs down. The SaaS developers at Metricoid will create a comprehensive, safe, and lightning-fast SaaS platform that you can license to your customers.