The past few years have seen a notable uptick in the amount of businesses which invest large sums of money into the development or acquisition of new software. Tech investors have eagerly been fueling the growth of the “Software-as-a-service” (SaaS) marketplace, with small innovators and major corporations alike eagerly embracing new means of getting their hands on software that doesn’t necessarily entail that they create it themselves.
One report noted that the SaaS market expanded to roughly $100 billion in 2019, and private companies around the world are giving every indication that they intend to keep spending money on acquiring software developed and marketed by others as a service as time goes on. The ability of nearshore software development companies to convince business owners that they can save huge sums of money by purchasing software services hosted by others will thus likely grow in the near-future.
Another reason that businesses everywhere are embracing the software boom is that, in many circumstances, companies need not even pay money to get access to certain software which has been made publicly available. The explosive growth of what’s called “open source software,” or that software whose source code is made “open” to the public for free and can easily be downloaded, has enabled many companies to orient their operations around software like never before. Previously prevented from doing so due to the prohibitive costs associated with IT spending, they’re now free to embrace the software revolution as they digitize their businesses.
Tech investors are facilitating this transition
One reason that companies everywhere are making the transition to software-oriented-operations is that tech investors are pumping colossal sums of money into the development of the SaaS market. Viewing SaaS as the future of profitable software, these investors are pushing the software as a service model onto every company they can.
Rather than paying a lump sum in order to enjoy access to the software in perpetuity, many businesses, especially smaller companies, are realizing that this rental model is far more financially convenient for them. Capable of enlisting the help of customized software for a brief period of time by renting it, they can then complete their projects and terminate their rental agreement, saving them money. Much of this rented software is focused on manipulating data, which is increasingly becoming the lifeblood of the modern economy.
Companies of all shapes and sizes vacuum up huge sums of data which they subsequently analyze in order to make wiser commercial decisions. Whether it’s gaining insights into what consumers are looking for as they shop or coming up with innovative ways of optimizing the efficiency of their supply chains, companies can leverage these data-weighing software services to an extent never seen before in the marketplace. Companies like Mettler Toledo can benefit from popular buzz surrounding the launch of their new software services, but they’ll need to provide results to remain competitive in a marketplace replete with software options.
As the economy is increasingly digitized, expect the SaaS industry to keep growing at a breakneck pace.