July 28, 2017

85 Percent of Small Businesses Set to Invest More in SaaS (Infographic)


SAAS Industry Trends - 85 Percent of Small Businesses Set to Invest More in SaaS (Infographic)

Just a couple of years ago, businesses looked at Software as a Service (SaaS) with some apprehension primarily because of security risks. A lot has changed since then. Today more than 85 percent of small business executives are willing to invest more in SaaS solutions over the next five years, according to research by Intuit.

What’s led to this change? Shifts in technology, particularly mobile devices and reliance on digital, says Gartner.

The tech research giant even predicts that by 2020, about a quarter of organizations in emerging regions will be running their core CRM systems via SaaS. That’s a 10 percent increase over 2012.

The data has been compiled and analyzed by software company Better Buys in its 2016 Report on the State of SaaS.

SAAS Industry Trends – Key Highlights of the 2016 Report on the State of SaaS

The report provides some interesting insights on SaaS adoption by small businesses. Here are a few important takeaways:



  • About 64 percent of small and medium-sized businesses rely on cloud-based technology to drive growth and boost workflow efficiency, finds cloud computing services company BCSG.
  • SaaS is expected to grow to $12 billion in 2016, and jump to $16 billion in 2017, and continue to grow year over year to an estimated $55 billion by 2026.
  • About 90 percent of mobile data traffic will be generated by cloud solutions by 2019.
  • Nearly half (43 percent) of small business owners use mobile as the primary devices for running their operations.

How a Small Business Can Benefit from SaaS

A large number of small businesses are opting for SaaS to automate everyday tasks and optimize important workflows. It’s not difficult to understand why. The best thing about SaaS is that it makes it easier for companies to add and access information whenever and wherever they want.

What also works in favor of SaaS is the flexibility small businesses get out of using it. Instead of investing in expensive IT infrastructure, small companies need to just pay for an ongoing subscription. For cash-strapped businesses, this translates into savings.

“Budgets are being decreased and the business units are already going out and buying SaaS without talking to the IT departments about it. They’re finding that they get more choice, they get it faster, they get it with less hassle — it’s instant gratification if you will,” Gartner VP and fellow Daryl Plummer tells ZDNet.

It’s an interesting time for small businesses to take advantage of advanced SaaS solutions. There are many SaaS startups offering great solutions to help businesses navigate today’s social marketplace.

With so many choices available, small businesses should focus on identifying solutions that work best for them.

Check out this infographic from Better Buys:

SAAS Industry Trends - SAAS Actual and Projected Expenditures

Images: BetterBuys

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Shubhomita Bose


Shubhomita Bose Shubhomita Bose is a Staff Writer for Small Business Trends. She covers key studies and surveys about the small business market, along with general small business news. She draws on 8 years of experience in copywriting, marketing and communications, having worked extensively on creating content for small and medium sized enterprises.

2 Reactions

  1. Excellent data. As the security and trust builds, we will have many SMEs to move into SaaS model. Challenge that I see is so many “me too” kind of application and diluting the strength of SaaS and its benefits. It takes huge amount of time to build the TRUST.

  2. Thanks Shubhomita for sharing these useful and important market facts on SaaS. Stats were quite useful in my prelim research and some decision making issues we have been facing.

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