SaaS industry’s “crises” and “machine” at epidemic

No one would have contemplated, 2020 will be the opening to a large epidemic. This sudden epidemic, to all walks of life have brought a “crisis.” Online education, telecommuting, cloud SaaS medical and other related industries have pushed to the “top of the wave”, while SMEs have to face cash flow may at any time break of danger. SaaS industry is currently the situation is a “rainbow night.”
SaaS the “machine” telecommuting surge in demand, the secondary market stocks daily limit in 2003, the SARS epidemic so that plunged the country’s population mobility, supermarkets wants to come, the electricity supplier unexpectedly rise historic opportunity. When in 2020 the new crown pneumonia outbreak, many people began to follow the SARS experience to predict which industries will benefit from this. The most promising industries, including online education, collaboration, video conferencing, and these industries are all SaaS. Telecommuting during outbreaks , especially video conferencing, document collaboration, were ushered in a surge in demand. 2020 February 5, nailing downloads for the first time more than micro-channel Control Engineering Copyright , leapt to Apple’s App Store Free App ranking first, then downloads as high as 40-50 Wan; Zoom downloads per day from an average of less than 4,000 years ago, broke through 50,000; graphite document, founder and CEO, said Wu Bing graphite documents recently added subscribers and reach the largest number of enterprises registered in the past more than five times. Based on this, Alibaba, Tencent, Huawei, and other domestic byte beating continued investment in Internet technology giant cloud of computing resources. Ali nails on February 3 and February 4 Emergency expanded 20,000 cloud servers to ensure that the video conference, the group live, work collaboration and other functions. Tencent meeting From January February 6th to the 29th, also during the day resource expansion, expansion of daily cloud hosting nearly 1.5 million units, a total of eight days the expansion of cloud hosts more than 100,000 units, computing, involving a total of over one million nuclear resources invested. In addition, segments of the SaaS CRM industry has also ushered in periods of peak demand. Tel number of customers since 2020, February 3, enjoy numerous sales customer received approximately 9 times the usual customer login to rate rose nearly 40%. Secondary market, SaaS industry in the mobile office concept stocks were also sought after. Since February 2020, A-share telecommuting sector since starting the year also gains the most fierceOne shoved the plate. February 21, plate, there are six stocks to limit price at close, the whole plate heavy volume rose 5%. In the US market, video communication software Zoom sought after by investors CONTROL ENGINEERING China Copyright , ushered in posting gains. National cloud office the next day, Zoom or nearly 15 percent, its biggest one-day gain in eight months. As of press time ago, Zoom market value of $ 29.022 billion. In addition to the remote office scene in a variety of collaborative tools, online business operations of this trend will accelerate development. Plum Ventures founding partner Wushi Chun said, “after the crisis, capital market valuations to pure SaaS software will increase. 10 times the original PS (sales ratio) valuation model, and even up to 12-15 times.” However, , it is undeniable that there are “good luck” of SaaS companies are in the minority , telecommuting surge in demand brought about by the flow of dividends and brand awareness, the biggest gainers Internet giant still. SaaS the “danger” high labor costs, status of tight cash flow SaaS industry is still precarious, the industry itself is high labor costs, financing very difficult period, cash flow is tight, many SaaS companies, or will face a crisis of survival. SaaS is a knowledge-intensive industries, products and research and development takes years of cumulative investment type, which determines the high labor costs in the industry. At present, the majority of SaaS business start-ups CONTROL ENGINEERING China Copyright , funding more dependent on financing, there is no self-hematopoietic capability. SaaS industry there is a feature – must continue to serve. This means that the SaaS business enterprises can not pause, it is difficult by shrinking, shut down to deal with the epidemic crisis – even if only one customer, cost of doing business will continue, there is no business, “pause button.” Epidemic caused many SaaS enterprise sales and delivery can not be performed, the cash flow cycle is elongated, facing a cash flow crisis. Especially SaaS companies to provide services for the complex supply chain, labor-intensive industries is at stake, because these customers rely on the company’s industry supply chain, while the current stagnation of the supply chain, the customer is bound to attend SaaS procurement. Ming Yun, founder of anyHui published to the public in their own numbers “feel good here? SaaS industry is actually at stake “, said in February this year, has already started working layoffs, pay cuts, SaaS companies seeking to borrow a few. But SaaS start-ups are mostly unknown to the public, if the epidemic continued to affect more than three months, most of the SaaS company’s cash flow will be at risk, if the effects of more than six months, most SaaS companies will disappear. Tsinghua University, Peking University joint research status of 995 SME data also show that 34% of businesses only last a month, 17.91% of the company to maintain for three months, only 9.96 percent of the company can maintain more than 6 months.
Conclusion The outbreak was a unexpected “black swan” for the SaaS industry, both short-term pressures, but also an opportunity to change the industry landscape. I believe experienced the outbreak, some areas will accelerate its overall development, to go faster and more resolute.

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