Software leaders see SaaS revenues surge 60%
Software-as-a-service (SaaS) is becoming an increasingly attractive option for many businesses, with new research showing revenues surged in 2012.
PricewaterhouseCoopers (PwC) revealed global software leaders reported a 60 per cent rise in earnings on SaaS offerings, while total software sales climbed just 5 per cent.
The software market reached US$255 billion (AU$279 billion) in 2012 and the SaaS segment made up nearly a tenth of the total at US$20 billion. According to PwC, the figures indicate a consistent and growing shift towards SaaS trends.
Global software leader at the company Mark McCaffrey said as markets and resources expand worldwide, the structure of PwC's Global 100 software leader rankings will shift.
"Boundaries between hardware and software are blurring as technology products are being commoditised and companies are looking to the value of software to act as a differentiator," he explained.
"While challenging, as competition over innovation increases, we've entered a period of great opportunity for those who plan and act strategically."
His comments may encourage businesses in the property sector to consider revamping their current real estate technology processes. Mr McCaffrey said organisations that fail to take advantage of new trends could be left behind.
"Those who capitalise on increased digitalisation will have huge growth opportunities, and those who don't run the risk of getting lost in the shuffle," he added.
Software companies are making a number of changes in order to maintain a competitive edge. Many are now moving away from developing large and complex products in favour of easier-to-use apps that can run in the cloud.
A number of hardware firms are keen to develop their offerings in this space, providing value-added software platforms with their products to remain relevant.
Traditionally non-technological sectors are also beginning to digitise their goods and services in an effort to entice customers, PwC said.
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