The software as a service market - Italy (2023)

1.2 The global market

In ****, the worldwide Software as a Service (***) of **.*%. By the end of the period, the global SaaS market could reach a value of $***.** billion.

SaaS Market World, ****-****, in billions of dollars FortuneBusinessInsights

In ****, **.*% of total user spending on Cloud Services is collected by PaaS. This is followed by Cloud System Infrastructure Services with **.*% and Cloud Application Infrastructure Services with **.*% . Cloud Business Process Services collect **.*% of total spending,while Cloud Management and Security Services and Desktop as a Service collect *.*% and *.*% of total spending, respectively. Total user spending on Cloud Services, breakdown by service type World, ****, % BMC

1.3 Italian Market

The Cloud market is booming in Italy. Between **** and ****, the total value of the Cloud market in Italy increased from *.** billion euros to *.** billion euros, marking a growth of ***.*% in * years. The growth appears to be constant throughout the entire period and is particularly evident between **** and ****, when the value of the market grew by **.*% in a single year.

Cloud Market Italy, ****-****, in billions of euros Anitec-Assinform

In ****, Infrastructure as a Service (***) with *.*% . Cloud market, breakdown by type of service Italy, ****, % Anitec-Assinform Regarding the single market segment related to Software as a Service, between **** and **** the market value grew by ***.*% , from ***.* million euros in **** to ****.* million euros in ****. Software as a Service (***) Market Italy, ****-****, in millions of euros Anitec-Assinform

1.3 Covid-19 impact

While the growth in Cloud-related spending in **** was driven primarily by the need to respond to an emergency situation, with the adoption of Cloud solutions to enable business continuity remotely, **** has been the year of awareness on the part of companies, which have realized that the transition to the Cloud is essential in order to enable them to have the scalability and responsiveness that the market demands. In many sectors, this awareness has translated into Cloud migration plans and application modernization processes that allow a large part of systems and applications to be progressively brought to the "cloud"[***].

Role of the Cloud in the responses to the Covid-** emergency Italy, ****/****, in % Source: ****

2.1 Public Cloud

During the last two observations, revenues are expected to increase significantly in all segments. This reflects the general trend for the entire forecast period from **** to ****. Revenue is estimated to continue to increase in all segments. In this regard, the Platform as a Service segment reaches the highest value of *.* million in ****.

The graph shows the revenue growth of the public cloud market in Italy from **** to ****, divided into three segments: Software as a Service (***).

Public cloud market revenues in Italy from **** to ****, by segment Italy, ****-****, in millions of € Source: ****

2.2 Use of Saas by companies

In ****, **% of respondents said the company they work for would migrate more workloads to the cloud and move from om-premises software to SaaS. In contrast, only **% of respondents planned to expand their use of the public cloud.

Cloud computing projects implemented by companies in Italy in **** Italy, ****, as a % of total respondents Source: ****

Most organizations surveyed in the survey by Twilio, the leading cloud platform for customer communication and engagement, have increased their use of software as a service (***) and programmable solutions. In addition, most companies plan to further increase the use of these solutions in the coming year. The surveyed organizations are part of the following European countries: France, Germany, Italy and the United Kingdom.

Digital approaches used by organizations in **** and future evolution of these in **** Europe, ****-****, in % Source: ****

Among the main technology areas of investment by industrial companies in ****, there is Cybersecurity in first place, followed by BI and Reporting, and in third place we find the adoption of Saas services, covering about **.*% of the investments directed to technology areas.

The main technology investment areas of industrial companies in **** Italy, ****, in % Source: ****

2.3 Reasons behind the use of Saas in SMEs

Cloud-based applications such as the SaaS model, once aimed primarily at large companies, are becoming attractive to small businesses as well. There are five good reasons in particular that make cloud computing and SaaS providers increasingly popular with SMBs:

Digitization and the evolution of technology in recent years have made IT working conditions and environments increasingly complex and complicated; in-house IT experts and IT departments in small and medium-sized enterprises are often overwhelmed by this. The rapid development of the Internet has also meant that there is currently a shortage of IT specialists. Again, SaaS can be a practical and cost-effective solution for SMEs to remedy the shortage of IT experts. Using SaaS really helps to set up operational processes in a streamlined and efficient manner, reducing costs and saving on IT budgets. Digitization and new business models have ultimately given rise to new areas of digital work in many SMEs, such as e-commerce, content management and working with CRM software. The resulting new workflow also needs to be represented in corresponding software solutions. To top it off, there is another important reason: with SaaS, SMEs get a high level of data security and data protection, at all times [***]

In fact, ...

3.1 Characteristics of the Italian market

The graph below shows the evolution of the number of enterprises active in software production in Italy from **** to ****. In ****, the number of enterprises was *****. In ****, the number increased to *****, registering a growth of *.**%. In ****, the number of enterprises further increased to *****, a percentage increase of *.**% from the previous year. in ****, there was a significant jump, with the number of enterprises reaching *****, marking a *.**% growth over ****. Finally, in ****, the number of enterprises jumped dramatically to *****, registering the highest percentage growth during the period under consideration, or **.*%. In summary, the graph shows a trend of steady growth in the number of enterprises active in software production in Italy during ****-****, with a particularly pronounced increase in the last year. The overall increase over the period is **.*%.

Number of enterprises active in software production Italy, ****-****, in number Source: ****

As well as the number of active enterprises, the number of employees in the sector also appears to be growing between **** and ****. During the period analyzed, the total number of employees increased from ****** to ******, marking a growth of **.*%. While between **** and **** the number of employees is basically stable, between **** and **** this grows by **.*%. Employment in active software production enterprises Italy, ****-****, in thousands Istat Finally, ...

3.2 Business Model

SaaS business involves selling customized software to customers, not a one-time product. The user purchases a license and then can use the software by renewing the subscription. A SaaS company creates a product, supports and develops it, and provides paid access to customers. In most cases, the product is billed monthly, but an annual or weekly subscription is also possible.

Source: ****

3.3 Service distribution model

Regarding the service deployment model, in Italy, Public and Hybrid Cloud gather the largest share of spending, with about *.* billion euros spent in ****, an increase of **% compared to ****. Also with reference to the service deployment model, Hybrid and Multi-Cloud Cloud strategies are the most popular in large enterprises, which on average use the services of * different providers.

Breakdown of service deployment models Italy, ****-****, in € billion Source: ****

4.1 Subscription Templates

For this software model, subscription-based pricing is the most logical choice. Instead of selling perpetual licenses, which charge a one-time fee for continuous access to a software solution, SaaS vendors can sell subscriptions with limited duration. These vendors retain full ownership of the software, selling permission to access it rather than the software itself. In return, vendors generally agree to provide ongoing maintenance, repair, support, and upgrade services, all of which are included in the subscription price. The vendor also reserves the right to make changes to the software and user access at any time. The details of such changes should be clearly defined in the end-user license agreement (***). As part of SaaS subscriptions, several pricing options are often available. These may include:

Annual contracts:Annual contracts, perhaps the most common form of SaaS subscription model, bind users to a specific service for one year. Customers make a single upfront payment with the option to renew the subscription after ** months. Although some companies may prefer this method because it allows them to operate without the worry of making monthly or quarterly payments, it may also be a source of concern for business leaders who must meet budgets. Short-term contracts:Short-term SaaS ...

4.2 Infrastructure

As of August ****, more than *** data centers were located in Italy and, in particular, ** of them were based in Milan. Data centers are buildings that house information systems and centralize information technology (***) operations shared by organizations. Key components of data centers include routers, switches, storage systems, application-delivery controllers, servers and firewalls, among others.

Number of data centers, service providers and network fabrics in Italy Italy, ****, in absolute value Source: ****

4.3 Saas offer

Software-as-a-Service (***) is a cloud service that provides end users with a cloud application, equipped with the platforms and IT infrastructure that support it, via a Web browser. it is an ideal solution for small or large companies or individuals who:

Prefer to delegate the maintenance of infrastructure, platforms and software on premise to a third party Prefer to simplify cost management through operating expenses (***). They need to keep customization to a minimum to overcome some obstacles. They prefer software subscription models.

Vendors offer SaaS-type software applications to meet countless business needs, from basic applications to more complex suites such as enterprise resource planning (***) systems. Below in list of some of the SaaS vendors and products:

Enterprise resource planning(***) software from SAP Human resource management software from Paychex Enterprise software from CA Technology SaaS messaging solution from Atos Customer relationship management (***) software from Salesforce Messaging service from Slack Microsoft Office *** Dropbox file storage service

4.4 Trends

In recent years, the SaaS platform has been affected by the integration of artificial intelligence. Although this is a trend, many companies are not enthusiastic about it because of the potential risks associated with it. In reality, trends such as machine learning and natural language processing offer tremendous opportunities for SaaS. Using artificial intelligence capabilities such as human speech pattern recognition, SaaS companies can enjoy higher levels of automation, security and faster data management. Resource-intensive industries, such as social media, education, travel, and healthcare, will soon be the most in need of artificial intelligence-based solutions as they can benefit tremendously from their applications.

SaaS products have seen a rapid surge in usage, requiring SaaS vendors to quickly upgrade their existing offerings for mobile compatibility. Looking forward, SaaS companies should invest in so-called "mobile-first development," meaning SaaS products are developed for smartphones first and then adapted for use on PCs. This is a crucial move to keep up with the times; it is estimated that by ****, *.* billion people worldwide will use smartphones alone to access the Web, while only ** million will use PCs. Although SaaS platforms will continue to be available on PCs, this mobile-first approach gives SaaS vendors an additional push ...

5.1 Regulation

A cloud service provider that serves (***) the Italian public sector must meet the requirements of the ACN Cloud Italy Strategy.

There are three classifications of data and services within the Cloud Italy Strategy:

Ordinary (***) Critical (***) Strategic (***)

Although Strategic is the highest classification-which therefore requires the most certification-the ACN anticipates that most CSPs will be considered Ordinary or Critical. In each case, regardless of classification, the relevant minimum compliance requirements must be demonstrated, which, depending on the classification, could include the following:

ISO **** certification ISO ***** certification (***) ISO ***** self-certification and/or certification ISO *****-* self-certification and/or certification CSA STAR level * attestation or certification

Source: ****

6.1 Segmentation

The SaaS market can be divided into:

• IBM
• Microsoft
• Oracle
• Accenture S.p.a
• IBM Italia S.p.a
• Ingegneria informatica S.p.a
• Coreview S.r.l
• Commerce Layer S.r.l
• Bizaway S.r.l