X-as-a-Service (where X can be anything) gathered popularity with regular updates in Cloud technology driven by widespread Cloud adoption. Well, “X-as-a-service” refers to anything served via the internet. The emergence of new use cases on a daily basis makes Cloud computing a dynamic landscape. Cloud providers play a key part in bringing IaaS, SaaS, or PaaS to the general public. These aside, other key players provide niche services such as DaaS (Databas-as-a-Service) and others.
SaaS has emerged as the strongest among such services. A web based platform accessed by end-users on their preferred devices over internet. Simple, isn’t it? While it is simple to understand the concept of SaaS, it also makes life easy for businesses that fulfil their customers’ requirements by leveraging Cloud computing. The benefits of SaaS are clearly visible in the revenues registered by various IT companies.
VMware Q2 results shows good growth
Cloud infrastructure firm VMware has published its quarterly earnings report, with overall revenue exceeding analyst expectations. According to the report, the company recorded earnings of $447 million for the second quarter, equating to $1.06 a share ($1.81 non-GAAP). Revenue was up 9 percent compared to the same period last year, reaching $2.88 billion.
The success has been attributed to VMware’s subscription and SaaS solutions, which grew by almost half (44 percent) year-on-year. Generating $631 million in revenue, this segment represents almost a quarter (22 percent) of the company overall revenue for Q2.
“We plan to accelerate certain product initiatives through the remainder of the year, which will further support customers’ digital transformations and grow our Subscription and SaaS product offerings,” explained Zane Rowe, VMware CFO.
Workday Q2 results top estimates
Workday, Inc. is an American on‑demand financial management and human capital management software vendor. The company reported a revenue of $1.96 billion, up from 19.6% as compared to the same quarter for 2019. Wall Street estimated Workday’s revenue to be around $1.04 billion. Workday’s software found rapid adoption due to the sudden change in human resource management at a time when majority of the staff is working from home. Managing finance is also difficult for organizations due to the COVID-19 pandemic, which also increased subscription for Workday’s offerings.
Workday expects the subscription revenue to be around $948 million to $950 million for its third quarter. As far as fiscal year 2021 is concerned, the revenue that subscriptions are expected to land is $3.73 billion to $3.74 billion.
It is clear that remote work, dynamic needs, new emerging use cases and subscription model is driving growth for SaaS vendors. The SaaS platforms are serving the needs in almost every industry be it healthcare, finance, public sector such as government institutions, and many more. The future is indeed bright for SaaS industry.