The recent digital advancements have made businesses focus on digital technologies. Technological advancements have significantly increased the demand for B2B (business-to-business) SaaS (Software-as-a-Service) solutions. Fortune Business Insights, a market research company, has predicted that the B2B SaaS market will reach $883.34 billion by 2029.
In this blog, you will learn about this billion-dollar market, SaaS and B2B SaaS, in-depth, along with information on the top B2B SaaS companies.
- 1 What is SaaS?
- 2 What is B2B SaaS?
- 3 Advantages of B2B SaaS
- 4 Top 10 B2B SaaS Companies
- 5 Wrap Up
What is SaaS?
Using the Software-as-a-Service (SaaS) model, a cloud provider hosts programs and makes them accessible to customers online. The SaaS model allows an Independent Software Vendor (ISV) to hire/subscribe to a different cloud service provider to host the application.
The software can be rented out to be used by any organization, and its users can connect to the software with a web browser via an internet connection. Email, MS Office tools, calendaring, etc., are common examples of SaaS solutions.
SaaS, along with Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS), is one of the three basic types of cloud computing. Various IT specialists, commercial and private users use applications as a service.
What is B2B SaaS?
Businesses that provide B2B SaaS typically charge other firms on a subscription basis to use the cloud-based software. Business-to-business software as a service’s primary goal is to alleviate company pain points and improve operations.
In B2B SaaS, the ‘first B’ stands for the vendor that provides a software product to another B, a corporate business that needs the software to be used in their cloud with an accessible mobile application or a browser.
As per the SaaS model, the trade of the software is mainly carried via a B2B marketplace website owned by the ‘first B’, and you can generally pay its recurring subscription on a monthly or annual basis.
Advantages of B2B SaaS
Now that you are aware of what exactly is SaaS and B2B SaaS let us hear out about the advantages it has to offer,
1. Easy Accessibility
B2B SaaS is not traditional software. Its products do not need any kind of installation. They just need to download to your system through the internet.
With no use for a specific installation method or tool, it is the perfect choice for remote employees working in different time zones and devices. The B2B SaaS can be accessed from any part of the world on any device with its appropriate credentials.
2. Easy Upgrades
B2B SaaS products are always in development mode. New features and upgrades are done frequently. The upgrading work is so precise that it’s hardly noticeable to customers. Changes in UI/UX are implemented without disturbing customers’ ongoing work.
Compared to the traditional software, their upgrades were done periodically, i.e., at a certain time only, which increased its development cost and hurdled customers’ ongoing work. Additionally, users had to wait a lot for new updates or new versions.
The new features and upgrades are placed in different subscription plans. You can upgrade or downgrade the subscription plans according to your business needs.
3. Cost Reduction
B2B SaaS operates on a single cloud. The changes or updates done in the software are applied to the entire user base.
If there is a bug that needs to be fixed, the probability of the bug being noticed is low, as the software is used by a lot of users spread across the globe. As soon as the bug is fixed, it will apply to all the software users unanimously. Bug fixing will be done so smoothly, without even being noticed by you.
4. Easy Cost Prediction
Unlike traditional software, you do not have to pay a lump sum amount as a B2B SaaS upfront fee. Additionally, you have to pay very high maintenance fees for traditional software.
Whereas in B2B SaaS, the B2B SaaS solution providers have pre-determined financial plans, and clients just need to subscribe to a plan suitable for their business.
Cost prediction is the biggest and the best advantage offered by B2B SaaS, as companies are always on a tight budget and must spend their funds carefully. B2B SaaS provides them with plans for the monthly, quarterly or yearly subscription system, so they do not have to worry about software prices shooting up.
Top 10 B2B SaaS Companies
Currently, to this date, there are 25000 B2B SaaS companies operating worldwide. With such high competition, most companies are struggling to name themselves in the top B2B SaaS companies list, while some companies have already scaled the heights of success. Here is a list of the best B2B SaaS companies of today.
1. Google Workspace
Google Workspace houses 15+ productive tools that are used by businesses daily. These productive tools have benefited over 6 million users till now. From small businesses and startups to large enterprises, every business size uses Google tools.
Whether it is a manufacturing or retail industry, a marketing department or a finance department, Google has a tool for every industry and every department. Google tools are so user-friendly that they have become essential to every business routine.
The most preferred and highly used Google tools are Google Hangouts Meet, Google Analytics, Google Forms, Google Drive, and Google Docs.
Overall Score: 93/100
When it comes to taking a business online, Shopify is the first name that comes to everyone’s mind. Shopify has brilliantly helped millions of startups and small business owners take their businesses/stores to a global level.
The ease, affordability and customer support offered by Shopify have helped it gain a customer base of 1 million+ customer base around 175 countries worldwide. With this huge customer base, Shopify has become the third largest eCommerce platform in the eCommerce market. From customizable store theme templates to payment tracking, Shopify provides a wholesome bundle of amazing facilities.
Overall Score: 94/100
Hardly would there be any business unfamiliar with the name Adobe. Everything can be done with Adobe, from animation creation for websites to editing videos and images and conducting quick content reviews.
Believe it or not, Adobe itself has over 26 million paid subscribers on its platform, Creative Cloud.
Furthermore, Adobe owns one of the most popular eCommerce platforms, Magento, which offers the best Magento plugins and features to take your business online.
If you plan to launch a Magento eCommerce store, no one can help you better than a Magento 2 Certified Professional Front End Developer.
Overall Score: 91/100
Presenting you all the “Champion of customer service”, Zendesk. A company that provides its users with an online helpdesk solution for customer interaction, support functions and business sales.
With time, Zendesk also upgraded its services and now provides an advanced analytical system that benefits its users (businesses) by analyzing current market trends, detecting the impacts of those trends and different management upgrades, along with customer behavior analysis and issues faced by them.
Overall Score: 91/100
Millions of users count Slack as the second-best B2B SaaS communication tool because of its Productivity Bots and Business Instant Messaging. Within 2 years of its foundation, Slack had achieved a market valuation of $1 billion, making it the fastest-growing startup to achieve such a high valuation in so less time.
To this date, Slack has over 169,000 paid subscribers, from which 1285+ customers are the ones that spend $100,000+ annually.
The credit for Slack’s high popularity within a couple of years goes to its freemium model that was offered to its customers. Slack starts delivering its premium features right from the beginning and gradually encourages its users to upgrade to their premium plan to enjoy those amazing features.
Overall Score: 94/100
Email marketing is getting more popular day by day. Email marketing has been delivering highly profitable results recently, which has made digital marketers include email marketing in the “widely used marketing strategy” category.
Whether someone wants to run an email campaign, create attractive emails, track email marketing insights, schedule an automated campaign, etc., you can do everything with Mailchimp.
Founded in 2001, Mailchimp has become the most preferred email marketing platform, with 72.68% of the market share and a user base of 16 million users.
Overall Score: 94/100
If you are searching for an all-in-one SEO toolset, Ahrefs is the one you need. Whether you want to research content ideas, conduct deep keyword research, or find linking opportunities, Ahrefs will do it.
Ahrefs SEO services have made it the most trusted SEO service provider and helped it bag big business brains like Facebook, Shopify, Netflix and many more. No matter if you are a newbie marketer or an SEO expert, Ahrefs has every SEO tool to offer you to help businesses rank higher.
Overall Score: 94/100
Following the motto of “Customer success means our success”, Semrush is no different than Ahrefs. Both these platforms provide similar SEO and website tracking tools. The feature of checking the content quality is what makes Semrush unique from Ahrefs.
Even though it delivers the same SEO services as Ahrefs, Semrush has managed to bag a revenue of $124.9 million with 67k paid users.
Semrush’s unique approach to creating helpful content like blog posts and webinars focusing on the topics of getting more sales, traffic and conversion rates from its tools helps it keep its users engaged and increase their brand loyalty.
Overall Score: 92/100
Whenever you search for any marketing-related content, you will find at least one blog post by Hubspot ranking in the top 10 list for sure. The blog content offered by Hubspot has made it a marketing knowledge hub in recent times.
Hubspot was the one that introduced the term Inbound Marketing, which helped them collect a revenue of $200 million and enter the million-dollar club.
This CRM platform highly focuses on CRM, market automation, helpdesk, online courses, and sales performance management. Hubspot also offers various tools like Hubspot CRM, Hubspot Sales, Hubspot, Hubspot Service Hub and Hubspot Academy.
Overall Score: 90/100
Offering 100+ cloud products like online chat, computer software, video meetings, and life management, Microsoft still holds its position in the top 10 B2B SaaS companies and is one of the largest software companies in the world.
Microsoft has so many tools to offer us, like SQL Server, Windows Office, Dynamics ERP, CRM, Skype, Xbox, Azure, and Windows Phone.
Overall Score: 94/100
Gaining more business from customers is the main aim of every eCommerce business, but if you want to take this aim one step ahead, you must highly consider B2B SaaS products. By the end of this knowledgeable article, you might have concluded the importance and trend of B2B SaaS products.