What defines the business winners of the next decade?
Companies are closing, businesses are struggling but amidst the chaos — but some companies are actually thriving. Why and how does your business need to adapt?
In my precedent article, we talked about how COVID-19 reshaped consumer internet habits. This week, we’ll explore how the virus has affected business software spend. The data comes from research done by TrustRadius, a software review site.
The Fastest Growing Software Categories During COVID-19
The COVID-19 pandemic has had a staggering impact on every element of life. It’s impacting both personal and professional lives. Companies are closing, businesses are struggling but amidst the chaos — some software companies are actually thriving.
Global SaaS sales were projected to reach more than $132 Billion by the end of 2020, but since the outbreak, SaaS companies have been laying off staff, investors have been writing essays about the importance of cutting back spending and many are guessing that there will be a significant downturn in SaaS revenue. Yet… The differences between the way the world operated during the last financial crisis (2008) and the world today are significant.
Technology is much more advanced than it once was. People are being advised to stay home and thus, they’re spending time online. And many organizations are trying to operate as usual but with staff working entirely from home. So that leads the industry to ask a simple question: What software are people looking for?
To answer this question, the team at TrustRadius, a review site for software & service companies analyzed traffic data across all of their categories compiled a list of the fastest-growing. The results are in:
Electronic Signature Software
Web Conferencing Software
Antivirus Protection Software
Remote Desktop Software
Video Platform Software
Web Portal Software
Live Chat Software
Other categories that were reported as showing interest amongst buyers included HR Management Software, Learning Management Systems, Workflow Software and Customer Relationship Management (CRM) Software.
But it’s not all good news. A few software categories have started to see a decline in interest & growth:
Assisted Living Software
Event Management Software
The obvious winners
We all know that Zoom is winning. Web conferencing is up 5x overall. What’s notable, though, is that startups are starting to challenge Zoom. One of those challengers is Loom, a Sequoia-backed video platform founded in 2016. There’s been an almost 200x increase in traffic to the Zoom vs. Loom comparison page on TrustRadius.
The secret winner in the category: the VC firm that backed both companies. Sequoia Capital led Loom’s Series B and Zoom’s Series D.