In-depth interpretation | "China Enterprise SaaS Industry Research Report 2021" Trend Analysis

Recently, iResearch released the "2021 China Enterprise SaaS Industry Research Report" (hereinafter referred to as the "report"). IResearch is a leading brand in the field of China's new economy and industry digital insight research and consulting services.

In the report, ONES was selected as one of the "typical vendor cases" , focusing on the performance in synergy . At the same time, 161615a1f8af9b is benchmarking, serving corporate customers of different sizes, and the latest financing trends. that are highly consistent with the conclusions of the report.

Benchmarking effect appears

According to the calculations of the report, after the market rebounded in 2018 and the growth rate fell slightly in 2019, the growth rate of the SaaS market in 2020 will rise again due to the epidemic. The SaaS market in 2020 will reach 53.8 billion yuan, a year-on-year increase of 48.7%. At this stage, the capital market has a more rational attitude towards SaaS, and the development of various sub-tracks has gradually matured. expects the market to maintain a compound growth rate of 34% in the next three years continues to expand.

IResearch believes that SaaS is exactly the result of the internal and external environment changing from quantitative to qualitative change .

First of all, the tide of the times is urging enterprises to digitally transform . New infrastructure and cloud computing have become one of the important links of the national strategy. The exponential expansion of data volume is a new opportunity for highly flexible SaaS. Increasing demand is an inevitable trend; the normal development of the industry will also promote the steady progress of SaaS.

Secondly, the epidemic sounded the horn of SaaS overtime, detonating some tracks to reshuffle . The epidemic and e-commerce retail, online marketing, collaborative office, audio and video, etc. can achieve a violent response to cross-spatial information transmission and accelerate output. At the same time, it has improved the overall understanding and acceptance of SaaS by enterprises, and its influence is far More than the present.

Once again, the intergenerational change of the population has increased the company’s preference for SaaS products and willingness to purchase . Nowadays, the post-90s and post-00s have taken up their jobs and have a high degree of acceptance of IT tools, and their self-service demand for IT tools has increased. At the same time, the age level within the enterprise is expanding, and changes in demand drive the continuous optimization of SaaS functions.

Finally, the benchmarking effect of the leading SaaS companies in each track began to show , and manufacturers were more sensitive to customer needs and responded more quickly. SaaS vendors began to find a development model that fits the company's genes from the cases of leading companies.

For example, ONES, founded in 2015, has grown into a leading domestic R&D management solution provider in just a few years. At the moment, the capital level has reached a consensus: On the Chinese software R&D and engineering management track, ONES's leading benchmark position in the industry has been further consolidated and consolidated.

IResearch said that with its flexible and professional product capabilities, ONES can quickly meet the R&D management scenarios of enterprises in various fields. In terms of the size and number of customers, industry barriers, localization demand satisfaction, and rapid revenue growth, ONES is in a leading position in the software R&D management segment. future, ONES will continue to strengthen domestic substitution capabilities, further improve product and operation independent service capabilities, and form a closed loop of solutions for various functional modules.

Evolution of corporate customers of different sizes

With the gradual enrichment of SaaS products and services, more and more companies are beginning to try to embrace SaaS.

According to iResearch, 31.4% of the companies in the sample that have revenues of less than 100 million yuan invest 100,000 to 500,000 yuan per year to purchase SaaS products, and has 30.6% of companies with revenues of more than 100 million yuan invested in SaaS each year. at 50-100 million yuan.

For small businesses , the number of users in each department is small, and the product demand scenario is relatively single. The low usage threshold and flexible payment model of SaaS products can just alleviate the financial pressure of small enterprises . At the same time, the complex was purchased easily purchase can meet the needs of small business rapid expansion of the changes brought .

Medium-sized enterprise is the main force of information transformation, and the transaction processing process of various departments has not been fully standardized. They are willing to try SaaS ease the pressure on IT employment and free up more funds for business deployment and ecological construction.

large enterprises core business basically can be done by traditional software, but try from outside to inside to migrate from traditional software to cloud . As the environment changes, large enterprises will try to choose SaaS products to meet their needs for decision-making assistance, marketing assistance, and corporate training, and often require deep customization and private deployment of products.

In summary, iResearch’s judgment is: SaaS adapts to the expansion needs of small enterprises and is moving towards the core application scenario of large enterprises . Here, the practice of ONES provides evidence for it, that is: SaaS products can serve millions of small and medium-sized teams, and can also meet the corresponding demands of large enterprises -and private deployment is a common form of medium and large enterprises , Will still become the mainstream delivery method for medium and large enterprises or industries that have higher data security requirements for a long time.

ONES 's 8 professional R&D management products run through the entire life cycle of software development. In 2020, ONES acquired Tower, a well-known domestic team collaboration tool, and was able to expand its business landscape. achieves "all-round coverage" from small teams to medium and large teams. one-stop shop for various project management scenarios to professional R&D management Solution .

Currently, ONES customers include include millet , China Telecom, Guizhou Maotai, SAIC, China Merchants Fund, the wave of software, including more than 500 companies ; Tower is served acoustic Holdings, China Resources innovations include the Leading companies in various fields, such as the Learning Center, Shengnong Group, and Yuanjiao, have accumulated more than one million teams.

According to iResearch, public cloud deployment is the most standard service model for SaaS software, but large-scale enterprises need private deployment to meet the needs of for enterprise internal data, customer data security, and secondary development.

On the other continues to serve large enterprises, supports privatized deployment, high-availability clusters and Docker containerized deployment , and supports rapid and flexible expansion. Data is completely isolated from the external network, highly secure and controllable. The system layer can be strengthened and complete data can be accessed at any time; at the same time, ONES also provides multiple efficient delivery capabilities such as public cloud, private cloud and hybrid cloud .

SaaS from the perspective of investors

IResearch found that investors have six directions when evaluating SaaS companies: corporate strategy, team culture, business management, user needs, market positioning and product technology . Among them, the operation and management situation can be judged based on the manufacturer's financial indicators. Product technology can be quantified based on product function.

User needs refer to customer structure and product preferences, which can be quantified through customer structure and delivery methods. Market positioning refers to product functions and the value it can bring to customers. Corporate strategy and team culture mainly evaluate the development direction of the company, assist in judging the growth rate and market saturation of manufacturers, and are strongly influenced by the subjective consciousness of investors.

In these six dimensions, investors most concerned about the company’s business management and market positioning . The former reflects the robustness of the company’s operations, while the latter reflects the development potential of the product.

IResearch pointed out in the report: From the perspective of financing rounds, the proportion of seed round financing in the SaaS field has decreased significantly since 2015, and the proportion of round B financing and subsequent rounds has increased year by year. shows that institutions are more cautious in investing in start-ups, and have a preference. Manufacturers with a certain operating basis, and the industry as a whole has begun to mature from start-up to .

The financing situation of ONES reflects this key point analyzed in the report. In late September, ONES announced that it had completed the C round of 50 million US dollars in financing . At the end of June this year, ONES announced the continuous completion of 300 million RMB B1 and B2 rounds of financing, only more than two months apart.

The lead investor in this round of financing is the Singapore Government Investment Corporation GIC , and the old shareholders Source Capital and XVC have three consecutive raising rounds. So far, ONES has completed three consecutive rounds of financing totaling nearly US$100 million within six months. As a result, ONES is domestic R&D management field of 161615a1f8b945, but also set the record of the fastest financing speed of in the

IResearch believes that from the perspective of the amount of financing, SaaS financing enthusiasm reached a small peak in 2016, and then the market became calm, and the number of financing declined, reaching the lowest value in 2020. In 2021, the financing enthusiasm has rebounded, and the number of financing has reached 173 as of the first half of the year. SaaS industry is affected by economic development, policy advancement and the residual heat of the epidemic will usher in a new round of development opportunities .