SaaS: software evolution and business impact
The digital transformation that is revolutionizing business
Software-as-a-Service (SaaS), or “software as a service,” represents one of the most significant innovations in the way organizations deploy and use software solutions. it is a cloud-based deployment model in which applications are hosted by a provider and made available to users via the Internet.
What does SaaS really represent in the current landscape?
Software as a Service represents more than just a software delivery model; it is a new paradigm that redefines the relationship between software vendors and end users. Unlike traditional software, which required local installations and constant maintenance, SaaS offers a cloud-based approach that prioritizes accessibility, scalability, and updating.
At its core, SaaS embodies the transformation from an ownership model to a service model. Applications are centrally hosted and distributed through the Internet, eliminating the need for complex and expensive IT infrastructure, while also introducing a new approach to monetization of the software itself, moving from traditional perpetual licenses to more flexible and sustainable subscription models.
What are the advantages?
This model is providing companies with new opportunities for growth and resource optimization, as well as numerous benefits, making it a popular choice for companies of all sizes.
Key features and benefits of SaaS
- Accessibility: SaaS applications are available via Web browser or API, allowing access from any Internet-connected device
- Subscription model: users pay for access to the software on a monthly or annual basis, reducing upfront costs and simplifying operational expense management
- Centralized management: the provider takes care of hosting, maintenance, updates and security of the software
- Scalability: SaaS solutions can be easily scaled to the needs of the business, enabling rapid deployment of new features or capabilities
- Multi-tenant architecture: a single instance of the software serves multiple clients while keeping their data separate
- Cost reduction: does not require initial investment in hardware or permanent software licenses
The numbers driving the market
Analysis of market data confirms the exponential growth of the SaaS industry. According to Gartner’s most recent research, the global SaaS market has reached a value of $195.2 billion in 2023, with a growth projection of 17.9 percent for 2024. This trend is supported by several key factors:
- cloud adoption rate in enterprises has exceeded 90 percent in developed markets
- investments in SaaS solutions account for more than 50 percent of enterprise IT budgets
- the average ROI of SaaS deployments is around 150% in the first 24 months
- the average implementation time of a SaaS solution is 60% less than traditional software
The Italian market
Software-as-a-Service (SaaS) adoption in Italy has shown significant growth in recent years, reflecting a broader trend in the cloud market. Here are some key figures on SaaS adoption in Italy:
- market value – in 2024, the SaaS market in Italy reached a value of 1.8 billion euros, up 21% from the previous year. In 2023, the value was 1.532 billion euros, an increase of 19%.
- overall cloud growth–the cloud market in Italy saw an overall increase of 24 percent in 2024, reaching a value of 6.8 billion euros, with SaaS contributing significantly to this expansion.
- adoption in SMEs–Small and medium-sized enterprises (SMEs) have seen an increase in cloud adoption, with spending on Public and Hybrid Cloud services increasing by 21 percent in 2024 to 581 million.
- post-pandemic trend–the pandemic has accelerated cloud and SaaS adoption, prompting many companies to consider these solutions as an integral part of their daily operations.
- future projections – it is expected that by 2025 the SaaS market will continue to grow, contributing to an increasing share of total IT spending by Italian companies7.
These data highlight how SaaS is becoming a key component for Italian companies seeking to modernize their operations and improve competitiveness in the marketplace.
Why is SaaS becoming increasingly crucial?
This model also plays a central role in the digital transformation of organizations. The ease of deployment and global accessibility of SaaS solutions are enabling companies to innovate faster and respond more effectively to customer needs. Collaboration among distributed teams has become smoother with SaaS applications, which provide real-time access to the data and tools needed.
How to adopt it in the company
To maximize the benefits of SaaS, organizations should take a strategic approach to its implementation; this includes a thorough assessment of business needs, vendor due diligence, and the development of clear policies for data management and security.
Investing in user training and organizational change management is also critical. Successful SaaS implementation depends as much on the technology as it does on people’s ability to adapt and make the most of the new tools.
Conclusion
Software as a Service represents much more than a technology trend-it is a fundamental shift in the way organizations approach software and IT in general. As the market continues to mature, we can expect further innovations and transformations that will make SaaS even more central to companies’ digital strategies.
This post is also available in: Italian