Software as a Service (SaaS)

An advantaged business model in the technology industry and beyond

Cloud computing and subscription-based business models continue to change the software industry. By the end of 2018 SaaS represented 28% of the total enterprise software market. It is expected to reach 45% by 2023—a significant milestone to achieve in such a short period of time.

Customers, vendors, and investors alike are reaping the rewards. Customers are enjoying increased flexibility and lower total cost of ownership. Vendors are seeing a rejuvenation in core businesses and moving from stagnation to growth. Investors are happy with higher returns as the market values SaaS companies two to three times higher than their on-premise equivalents.


The SaaS journey is hard. It's a different business model that requires new operating practices. At BCG, we've helped numerous clients through the journey. We've helped traditional software companies make the shift from selling on-premise licensed software to SaaS. We've helped SaaS natives accelerate their performance. And we've helped companies in other industries build SaaS businesses and new value propositions on top of their traditional businesses.

BCG’s Work in Software as a Service

Kronos, a workforce management software provider, is undergoing a transformation to SaaS. BCG has facilitated this change. Watch the video to see Kronos’ leaders share their thoughts on what triggered the shift, what it takes to transform, and what the benefits are.

More Insights on Software as a Service


Why Software PMIs Need to Get Agile

There’s a startling disconnect between how companies view their M&As and what they actually achieve. But by taking an agile approach, they can create greater value—faster.

Understanding Trends in Software and the Cloud

Understanding Trends in Software and the Cloud

Understanding Trends in Software and the Cloud

The Cloud Should Be Lean

The Cloud Should Be Lean

The Future of On-Premise Software

The Future of On-Premise Software

BCG’s Experts in SaaS

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