The State of Cloud Infrastructure and why ISVs invest in SaaS Offerings

According to The Redpoint team's InfraRed Report (July 2023), Infrastructure software outperforms application software as an asset class, with a Net Dollar Retention (NDR) of 120%, compared to 113% for App SaaS. Global B2B cloud spending favors cloud infrastructure due to its larger and faster-growing addressable market.

Global Spend on Infrastructure Software: ON-Prem + Cloud ($B)

Global Spend on Infrastructure Software: ON-Prem + Cloud ($B)

Infra SaaS vendors, like Snowflake, Cloudflare, Crowdstrike, and Datadog, are Independent Software Vendors (ISVs) that offer cloud computing services powered by virtualized computing resources over the internet. These companies build robust platforms with usage-based pricing, connecting their success to the success of their customers. The usage-based pricing model is tied to delivered value, as higher consumption and NDRs indicate increased value creation.

Application SaaS Vs. Infrastructure SaaS

Over 80% of infrastructure software companies offer multiple products, enabling them to generate additional revenue more efficiently and quickly. Further, Infrastructure Software businesses reach profitability faster. Please find the entire report here:

The same fundamental principles are relevant in Switzerland. Swiss apps and industry software solutions leverage an unseen layer of technology. Capitalizing on this crucial layer in a Cloud-native market offers exceptional business prospects.

Swiss ISVs have enormous potential to leverage the Cloud Computing service experience and offer a platform to their on-premises install base to take advantage of faster development cycles and a better overall customer experience.

Reach out to discuss and calculate the business opportunities for your Software.

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