Digital inventions like Customer Relationship Management, Office softwares, Communication tools, Marketing Automation and its likes constantly make meaningful impact and contribute significantly to the internet space all because they are by-products of the goodness that is Software as a Service (SaaS).
The Software as a Service is an interesting technological advancement that allows third-party providers to distribute software applications to customers over the internet.
This has purged the advent of amazing software applications such as Hubspot, Zoom, Google Workspace, Marketo, etc leading to an accentuation of the Industry and its munificent impact on tech enthusiasts.
The Software as a Service industry in Africa is set to go above waters with emerging tech experts exploring the industry and leveraging on trends to offer solution-oriented schemes for businesses.
The industry’s growth is influenced by a myriad of factors including drastic digital transformation, made possible by tech founders and supportive government policies poised to transcend technology on to greater heights through investment and infrastructure.
Businesses in Africa are at the receiving end of the benevolence SaaS offers. Because SaaS majorly hosts applications over the cloud, it has led to the increase of efficiency for companies as it lowers IT cost and also improves the service of their staff, granting them the opportunity to glean tech-based knowledge and technical know-how of technological products in trend. It surely shouldn’t be surprising why SaaS is on the rise in Africa.
Below are several reasons why:
1. Digital Transformation:
The world has witnessed a trajectory from traditional hacks down to full blown era of digitalisation, which of course doesn’t exclude africans. African business owners are rapidly moving with time and trends by integrating their businesses to suit digital inclinations such as the SaaS.
This digital transformation through SaaS and its offering of flexible and scalable applications builds up the zeal for businesses to thrive beyond limits.
2. Government Support:
The support of the government gives reason to SaaS continually leaping to an all end high. To improve and bolster technology, African governments are committed to implementing policies instrumental to the growth of digitalisation, given that its prospects are favourable and highly beneficial.
This can be easily traced with the latest efforts from Nigeria’s National Information Technology Development Agency (NITDA) promoting and canvassing for SaaS’ adoption being a part of the economy’s policy.
3. Investment in Tech Infrastructure:
Tech Infrastructure basically pegs the investment of tech bodies and government towards technology equipment; internet development and provision of powered networks for mobile connectivity such that it becomes easily accessible by many.
These infrastructure, therefore encourage business owners to adopt applications distributed by Saas.
With over 600 million mobile subscribers in Africa, the continent boasts one of the highest mobile penetration rates globally; more proof of the engagement and proliferation Saas introduced into the picture.
SaaS’ Advantages for African Businesses
It’s in no doubt that African businesses have been major benefactors of SaaS and its applications.
However, it’s important to understand key features that software developers and tech founders weave into the creation of software applications enabling numerous benefits enjoyed by business owners.
Some of Saas’ advantages includes:
1. Scalability and Flexibility:
By scalability, it means that SaaS and her applications are designed to adapt to changes seamlessly without thrusting difficulties for its users.
This is crucial for businesses in Africa because of the tremendous fluctuations in her economies. These platforms can be tweaked to inculcate new developments from individual businesses without interrupting already existing settings.
2. Cost Efficiency:
Instead of an outright purchase of a software that might dwindle the financial strength of businesses, SaaS as a distribution model allows users to typically pay a recurring subscription fee, which can be monthly or annually, inadvertently minimising cost for business owners.
SaaS being the service providers for the subscribed applications also handle the maintenance, upgrade and security of the applications as payments are all integrated into the subscription package.
This is clear proof that with SaaS, you don’t need to break the bank before you access advanced technologies beneficial to your bidding.
3. Accessibility and Mobility:
The penetration rates of the internet and mobile network have grown overwhelmingly. This lays the foundation for SaaS as its applications can now be accessed anywhere and almost everywhere, even in remote places with low IT staples.
With high mobile penetration, SaaS solutions can be accessed anytime, anywhere, facilitating remote work and business continuity.
4. Security and Compliance:
Tech inventors and service providers design software applications with security measures that protects the application’s data from being easily hacked or invaded.
This is in consonance with modern tech international standards, ensuring that African businesses can protect sensitive data and meet regulatory requirements.
Interestingly, tech experts have projected that in 2030, the SaaS market in Africa would have witnessed explosive growth, harnessing a full charge of technology and its usable software applications.
This, however, doesn’t reduce the present beam SaaS has mounted on Africa’s tech terrain as drivers of this proliferation peeks into reality. These include Increased Internet Penetration, Emergence of Tech startups (hub), and Sector-specific solutions.
Mobile networks have gained advancement spreading across its reach to wider regions, in turn enabling wider adoption of SaaS.
Also, most African countries like Nigeria, South Africa, Kenya, and Egypt have her citizens throwing into the tech pool where most operations are streamlined with technological tools.
This improves the tech ecosystem for these countries, thus encouraging SaaS providers to position companies there that will attract both local and international interests. More interesting is how SaaS caters for specific sectors.
Tailoring software applications to deal with the needs of specific sectors; agriculture, health care, education, finance/banking, etc.
This spector-specific approach would serve ultimately as a springboard to SaaS’ growth in a few years to come as rightly projected.
Despite the glossy prospects of SaaS in Africa, there are concerns surrounding its operations that should be addressed. These challenges include:
- Data Infrastructure: Mobile networks are present, yes, but its stability is usually a truncated wish. Mobile data is needed to run SaaS applications, interrupted data flow might lead to a slow functionality of the applications. Efforts should be geared to getting secured data networks across the continent to improve overall operations.
- Regulatory Environment: Lots of people are prowling into SaaS and its services. This indicates both a positive and negative sign; people who are getting digitally aware and involved at the same time might get too comfortable with these applications and misuse its function to achieve malicious intentions. SaaS providers must therefore set a strict regulatory framework that guides the utilization of these applications, ensuring that users comply with both local and international data protection laws.
- Talent Development: While there are innumerable users of SaaS, there are only a few software developers themselves in Africa. This is pitiful as major tech experts have limited knowledge of software creation, rather they only know how to use these applications and make the most out of it. There’s a need for skilled professionals to develop, deploy and manage SaaS solutions, hence the tech community in Africa should deliberately empower young tech enthusiasts who are willing to broaden their tech horizons with educational exposure needed to throw beneficial insights towards building technologies that would better and even surpass the invention of SaaS.
Conclusion
Software as a Service(SaaS) has evolved prominently as an industry in Africa ushering significant technological shifts and redirecting the productive ends of numerous businesses.
Businesses should fail not to enhance their services by leveraging the scalability, cost-efficiency, and accessibility of SaaS solutions.
Applications provided by Saas offer an array of advantages that can be strategically hijacked to drive innovative growth and achieve adequate standing amongst other tech giants.
SaaS holds a bright future for tech in Africa as its impact is bent on transforming the lives and economies of nations through innovative technological inputs that can compete among its counterparts a global landscape.
*The writer:
Hilary Utuke is the CEO of Korlod Works, a top Digital Marketing firm in Lagos. He’s authored four books including “Digital Strategies for Online Brand Visibility” and created Digital Luminary Pro (TM), a model helping Nigerian Thought Leaders connect with Millenials and GenZ audiences.
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