1/ The SaaS opportunity is way bigger than you think. a thread...

2/ In April 2020, the % of total US retail sales from ecommerce exploded from 16% to 27% in just 8 weeks. Something similar is playing out in SaaS on a longer timeframe...

3/ According to @Gartner_inc , cloud/SaaS is amazingly still only 9.1% of total global IT spend. However it is growing rapidly. Spending on public cloud services is expected to grow 18.4% in 2021 alone.

4/ The pandemic has accelerated the shift to cloud as more and more companies need to embrace remote work.

5/ At the same time, the number of business apps used by companies is growing rapidly. @okta's 'Business at Work' report shows that companies with over 2000 employees use an average of 175 different business apps

6/ So, what does this mean for investors???

7/ Well, firstly it means that the TAM for enterprise SaaS in general is growing rapidly. The only thing better than a massive market is a massive market that is growing fast. Companies like Salesforce and ServiceNow stand to win big.

8/ It also means that "small" SaaS companies will get way bigger than we imagine. Companies like Docusign can sell to everyone from an SMB to a Fortune 100 company. This wasn't possible in the age of on-prem software. Docusign's market cap is $42 billion.

9/ SaaS is not a winner-takes-all market. 78% of Okta customers who use Microsoft Office 365 (Teams) also use a "best of breed" solution like Slack or Zoom.

10/ Finally, it means that we are still in the early stages of the SaaS gold-rush. Not the end. Read more: https://softwaresignal.substack.com/p/the-saas-market-opportunity-is-way