What percentage of software used is SaaS?

73% of organizations indicated nearly all their apps will be SaaS by 2021

According to estimates from recent surveys, roughly 40 percent of software used by businesses is SaaS. This is expected to continue to increase as more organizations shift towards cloud computing and the development of more efficient software applications. SaaS has quickly become the preferred solution for many due to its low startup cost, fast implementation time, and scalability as companies grow. In addition, with pay-as-you-go pricing models and low administrative costs associated with running a subscription-based delivery model, SaaS offers distinct advantages over traditional license agreements.

SaaS growth rates are astonishing; just between 2015 and 2017, the number of SaaS apps averagely used by organizations doubled up from 8 to 16. This upward trend will continue as 73% of businesses have said all of their apps will be SaaS by 2020.

It is highly unlikely that all software will become as-a-service. One of the reasons for this is that every company has different needs, and as-a-service solutions may not fit their requirements. Furthermore, as-a-service solutions can be costly for companies with limited budget, or those who need only a few features from a particular product. Finally, having full control over the software also presents some advantages to companies which many value more than the benefits of an as-a-service solution.