Posts Tagged ‘SaaStr16’

Software-as-a-Service: Agile, Innovative, Thriving

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In the last few weeks, it seems that everyone has become convinced that the Software-as-a-Service (SaaS) sector is in trouble, thanks to a sudden decline in market valuations of SaaS companies like LinkedIn, Workday and Salesforce.

Those concerns aren’t without merit: In one week, the combined stock values of those three companies plunged by $22 billion, and in the first 9 weeks of 2016, the Bessemer Venture Partners SaaS index (which contains 38 cloud-computing companies) lost a mind-boggling $125 billion in value.

It would be easy to draw the conclusion that the SaaS industry is in the middle of a decline towards obsolescence, but it’s important to remember that the recent struggles of the tech juggernauts represented on the NASDAQ exchange aren’t representative of the industry as a whole.

In fact, a deeper look at the SaaS market reveals a far more positive perspective on the future of the industry. We host a tremendous number of SaaS companies, providing them with the capabilities and infrastructure they need to scale in accordance with market realities, and their numbers are expanding more rapidly than ever before.

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