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Tomasz Tunguz from
Tomasz Tunguz
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The SaaS ecosystem has been evolving incredibly quickly. Most of the time, the changes in the ecosystem are embodied in one particular company which grows exceptionally quickly. Focusing on these fast-growers, the macro shifts can be hard to discern. Last week, Okta released a report
Business at Work sweeps across SaaS to reveal these recent evolutions. These are the points that I found most interesting.
First, most companies, irrespective of size from 1-4k+ employees, use 14 SaaS applications. Though the report doesn’t detail these 14 products, I suspect there is a remarkable consistency across companies in which applications those are.
Here’s my stab at that list: CRM, Marketing Automation, ERP, Expense Management, Analytics, Email, Collaboration, Document Storage, Payroll, HRIS, ATS, IaaS, Customer Support, Recruiting. SaaS startups are either competing within these categories or creating a new category. The consistency of 14 apps underscores the importance of category creation for SaaS
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