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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.

To learn more, contact us at SaaS@bcg.com.

Self-Assess Your SaaS Maturity

BCG's SaaS Excellence application allows users to assess the maturity levels of their SaaS capabilities, and their maturity as SaaS companies overall. The app instantly provides an initial, high level understanding of potential areas for improvement.

The tool consists of:

  • A quantitative survey to assess the true health of the business
  • A qualitative survey to assess the level of maturity in the operating model

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

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

The Cloud Should Be Lean

The Future of On-Premise Software

BCG’s Experts in SaaS

  • Global lead for Enterprise Software & Cloud
  • Next-Generation Sales models topic co-leader
  • Lead for Technology Media & Telecom practice, US East Coast
  • Leadership team, BCG Gamma advanced analytics and artificial intelligence
  • Commercial priorities
  • PMI in technology industry
  • Digital in machinery
  • Digital strategy
  • Hardware-to-software transformation
  • Network equipment, wireless, and wireline product strategy
  • Equipment and infrastructure as a service
  • IT cost reduction
  • Leads Technology, Media & Telecommunications practice on the US West Coast
  • ROI optimization
  • Promotion effectiveness
  • Pricing strategy
  • Next-generation sales
  • Customer Success
  • Sales transformations
  • Digital go-to-market
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