Post for all Platform

Software as a Service is defined as a software delivery model that is hosted by a third-party provider who makes the application accessible to the target consumers through an internet browser. SaaS companies offer access to their software mostly through an application or website. Software as a Service applications are also known as Web-based software, hosted software, and on-demand software. In the Hosted model, software vendors host and maintains the database, code, and servers that make up an application. It is a cloud-based service that enables users to get access to several components and features of software using a subscription model, which includes a software license and other fees. The end-user can run the software locally on their system using the internet without downloading the software.

The primary factor contributing towards the growth of the Saudi Arabia Software as a Service market includes the continuous social infrastructural development followed by the increasing emphasis of the Saudi Arabian government towards strengthening the non-oil sector across the country. In Feb 2019, Saudi Arabia announced its Cloud-First Policy to encourage the public sector to shift from traditional IT solutions to cloud-based solutions for improved agility, security, reliability, and innovation. These initiatives will attract investments into the Software as a Service market, thereby fuelling the demand of the market in Saudi Arabia. In addition to this, the government has launched numerous digital initiatives, including the Saudi Arabia Vision 2030, which focuses on strengthening the IT infrastructure in the nation. The rising emphasis on the IT infrastructure will promote the adoption of SaaS applications, thereby bolstering the demand of the market over the coming years.
SaaS offers remarkable benefits such as reduces hardware and software license costs, minimizes the time spent in installation and configuration along with improved scalability, compatibility, and accessibility. Various multinational giants such as Google and Amazon Web Service are planning to set-up their data centers in the Middle East region to expand their global footprints, which in turn, will create new opportunities in the market. On the other hand, the growing data security concerns and complexity with regulations compliance will hamper the growth of the Saudi Arabia Software as a Service market during the forecast period.

Based on the deployment type, the public cloud segment is projected to grow at faster CAGR over the forecast period. The rising spending by the government and telecom operator on the infrastructure improvement will drive the demand for public cloud, thereby accelerating the growth of the market in Saudi Arabia over the coming years. Public cloud offers numerous benefits such as cost-effectiveness, easy and quick to integrate and set-up, requires no maintenance, and enhances security. It also provides high flexibility without redundancy along with negligible downtime and minimum risk.

Based on application, the human resources management segment is anticipated to lead the market during the forecast period owing to the growing penetration of SaaS-based HR management software among SMEs driven by its lower cost and easy to upgrade feature. It also enables remote access and increases the profitability of enterprises. SaaS-based HR management applications help to improve employee productivity as the user can quickly adapt to the additional features in minimum time and effort. The SaaS-based human resource application offers systematic management of all the HR related activities such as employee attendance management, notices & announcements, employee tracking, recruitment, and other activities.

Based on end-user, the BFSI segment is expected to grow a higher CAGR during the forecast period owing to the increasing adoption of cloud computing systems in the banking sector to enhance customer experience, improve productivity and efficiency. Moreover, the growing number of cloud data centers across the Middle East region will encourage banks and financial institutions to opt for SaaS-based solutions as it provides 24/7 support while maintaining data residency, security, and compliance needs.

Based on organization size, small and medium-sized enterprises segment is projected to grow at a higher CAGR during the forecast period. SaaS offers numerous benefits to small and medium organizations such as it reduces and eliminates expensive hardware & software costs and requires no maintenance or licensing cost. SaaS-based solutions are easy to integrate and use and provide high scalability and flexibility, which makes it highly suitable for small and medium-sized enterprises.

Various notable players operating in the Saudi Arabia Software as a Service market include IBM Corporation, Microsoft Corporation, SAP SE, Oracle Corporation, Cisco Systems, Inc., Amazon Web Services Inc., Infor, Inc.,, Inc., VMware, Inc., SolutionDot among others.

Key Developments:

  • In 2019, Oracle Corporation planned to launch three data centers in GCC countries, including one in UAE and two in Saudi Arabia. This expansion is a part of their “in-country” dual region strategy to assist their clients in addressing tragedy recovery and compliance requirements and increasing the footprint for Microsoft Azure interconnect.

The Saudi Arabia Software as a Service market has been segmented based on end-user, application, deployment type, and organization size. Based on the end-user, the market is segmented into Manufacturing, Healthcare, IT & Telecom, Retail, Education, Government, BFSI, and Oil & Gas. Based on the application, the market is segmented into Customer Relationship Management (CRM), Human Resource Management (HRM), Financial Management, Sales Management, Enterprise Resource Planning (ERP), and Supply Chain Management. Based on the deployment type, the market is segmented into Public Cloud, Private Cloud, and Hybrid Cloud. Based on the organization size, the market is categorized as Small and Medium Enterprises and Large Enterprises.

About GMI Research 

GMI Research is a market research and consulting firm which provides bespoke industry & market insights to help businesses in making the toughest business decision. We the know the significance of accurate data that’s why our analyst use tailored methodology to study each and every market in detail because one size doesn’t fit all. We just don’t cover only the traditional well-established market but also focuses more on niche market and markets in emerging market for which getting information is very difficult, which makes us pioneer in emerging market research space. Our syndicate reports cover multiple industry across regions and country.

Our in-depth market reports help propel your business with all the data, strategic inputs and competitive intelligence to move ahead even in the most uncertain times. Featured in the ‘Top 20 Most Promising Market Research Consultants’ list of Silicon India Magazine in 2018, we at GMI Research look forward to help businesses stay ahead of the curve.

Media Contact
Company Name: GMI RESEARCH
Phone: Europe – +353 1 442 8820;  US – +1 860 881 2270

Leave a Reply

Your email address will not be published. Required fields are marked *