SaaS or Software as a Service is a software distribution model, under which a cloud service provider makes cloud-based apps available to end users over the internet. The cloud-based apps can be accessed by the users through subscription instead of purchasing and installing them on their personal computer. With SaaS, users can save more space on their system, as the software is accessed through the cloud and thus improves the efficiency and speed of the system.
Advantages of Using SaaS:
- Through SaaS, users get access to sophisticated applications. As these apps don’t need to be purchased, deployed, updated or maintained, they become affordable for organisations.
- Reduces internal resources’ cost, as the solution provider is responsible for the application maintenance and the infrastructure management.
- Users need to pay for only those applications that they use, thus enabling them to save a lot of money.
- Most of the applications can be accessed directly from the web browser. Users need not download and deploy special software.
- Since the applications are available on the cloud, they can be accessed from any place with internet access. Thus, the problem of developing apps to operate on different systems or devices solves automatically.
Some of the common examples of SaaS applications for fundamental business technologies are:
- Sales management
- Customer relationship management (CRM)
- Financial management
- Human resource management (HRM)
Market Size of SaaS:
SaaS continues to lead the public cloud services market in Australia. As per IDC, which is a top global provider of market intelligence, advisory services along with events, SaaS contributed ~ 65.8% of the total market’s revenue of $4.01 billion in 2018.
As of now, more than 55% of the companies in Australia have deployed a SaaS solution; however, nearly 13% of the Australian companies are still not interested in implementing a SaaS solution. Over the coming years, number of organisations using Software as a Service to replace custom applications is expected to grow in the country.
Let’s look at some of the ASX listed companies making use of the SaaS technology to provide their products and services.
Xero Limited (ASX: XRO)
Xero Limited (ASX: XRO) provides small businesses and their advisors with online accounting software. The platform connects customers with financial services, data insights and over 700 third party apps. The software provided by the company can be logged in at any time, at any location, using Mac, PC, tablet or phone.
The mobile app of XRO is used to deliver invoices, reconcile, or create expense claims from any location. The app helps the user to send invoices to their customers and get updated when they are opened. Additionally, the users can import and categorise the latest bank transactions into the platform, which can be achieved via a click.
Xero’s secure online accounting software enables to:
- Keep accurate records
- Keep watch on business health
- Get paid faster, as it helps to reduce the time to get paid via online invoices.
Software’s major features are:
- Bank connections
- Information security
- Time and money spent tracking on a particular task
- Inventory tracking, stock management and easy addition of items into invoices and orders
- Bill payments on time
- Mobile app, capturing expenses invoice and reconcile
- Record, claim and manage expenses and receipts online.
- Employee payroll information tracking
WiseTech Global Limited (ASX: WTC)
WiseTech Global Limited (ASX: WTC) provides cloud-based software solutions to the logistics industry across the globe. The company, through its leading product, CargoWise One offers a complete logistics solution. Additionally, this product of the company accounts for an integral connection in the global supply chain. From a single office business to big multinational players are able to enhance their visibility, efficiency, quality of service, plus profitability using this solution.
The company uses the latest software tools and hardware platforms for building products, targeted towards addressing problems and creating new methods to make a significant difference to the logistics industry, along with its staff, shareholders, partners and customers.
3P Learning Limited (ASX: 3PL)
3P Learning Limited (ASX: 3PL) is a global leader in online education. The company provides e-learning resources covering mathematics, spelling, literacy, science and e-safety, created for schools as well as parents of school-aged students. The company is also into sales and marketing of online educational programs.
3PL has also entered into a partnership with UNICEF to reach thousands of children and provide them with learning materials and aids. The partnership has brought all - students, teachers and parents - under one umbrella - education for all.
Vista Group International Limited (ASX: VGL)
Vista Group International Limited (ASX: VGL) is engaged in the sale, support and associated custom development of software for the cinema industry. The company is also into providing services for online cinema ticketing website along with online data analysis and marketing.
Veezi and Movio are the company’s two SaaS solutions. Veezi is a cinema management solution (completely configurable), which is designed and developed exclusively for the SCM (Small Circuit Market). On the other hand, Movio is a global player in marketing data analytics as well as campaign management software, catered towards cinema exhibitors, film distributors, and studios.
Class Limited (ASX: CL1)
Class Limited (ASX: CL1) is a provider of cloud-based self-managed superannuation fund administration software solutions as well as services. The company is a leading provider of cloud-based administration software for self-managed super funds (SMSFs). The company also provide software to simplify the administration of investment portfolios held by organisations, trusts, individuals and other non-SMSF entities.
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