180 Million Global SaaS Customers and Growing

The SaaS software delivery model caught on quickly and has continued to grow year-over-year to nearly $400 billion in 2021.
By 2026, Gartner predicts that public cloud spending will exceed 45% of all enterprise IT spending (up from less than 17% in 2021).
In the US, about 15,000 companies host applications and make those solutions available via the Internet.
The Software-as-a-Service (SaaS) sector serves nearly 180 million customers around the globe.

SaaS Catches on Fast

By 2020, organizations worldwide were using an average of 80 SaaS applications each.
SaaS applications now account for 70% of these companies’ total software usage.
According to Gartner, end-user spending on public cloud services will grow by 21.7% to reach $482 billion by 2022.
By 2025, just 15% of all organizational software is expected to be non-SaaS-based.

Going Public

In high-growth mode, software companies are expanding organically, being targeted by private equity (PE) firms, and exploring initial public offerings (IPOs) and mergers and acquisitions (M&As).
Multiple SaaS firms were able to IPO in 2021 as a result of increased business. Compared to the same period in 2020, the number of enterprises specializing in SaaS that have IPOed surged by 125% in 2021.
Software companies are also dealing with increasing competition, pricing pressures and other business challenges.
These issues have pushed SaaS companies’ financial reporting requirements well beyond the capabilities of their homegrown and basic software systems.

Consolidating and Replacing Disparate Systems

• SaaS companies tend to rely on antiquated, on-premises software and basic financial systems to run their business.
• Yantra helps minimize the challenges of replacing existing technology and gives SaaS companies the best of both worlds: a leading cloud ERP system that’s connected directly to the existing software platforms that these firms don’t want to give up.
• With NetSuite, SaaS companies can automate management of recurring revenue streams, contract renewals, subscriptions and their upsell and cross-sell activities.
• The system also automatically recognizes revenue based on predefined schedules or milestones in compliance with ASC 606, IFRS 15 and other standards.

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