III. Industry Analysis
The SaaS industry is booming. Over the past five years, the SaaS industry has been one of the fastest growing industries in the U.S. In fact, end-user spending on public cloud services will reach $482 billion over the next five years.
Among cloud options, the outlook for SaaS is the brightest. The overall growth of the SaaS industry will remain consistent through these years as more companies adopt SaaS solutions for a variety of business functions, extending far beyond the initial SaaS territories of core engineering and sales applications.
The demand for subscription-based pricing models, however, is spurring legacy companies to rapidly migrate their software solutions to a SaaS consumption model.