While software reconstruction started gradually, over the past few years, it has exploded and become the fastest-growing segment till date has been the turn towards software as a service or SaaS.
SaaS has dramatically reduced the total central cost of ownership for adopting the software.
It has resolved scaling challenges and driven away from the burden of problems with local hardware.
It has provided businesses to focus primarily on just the market, while simultaneously, it reduces the burden of IT operations.
SaaS’s Growth
Currently, SaaS adoption is growing ubiquitous.
According to IDG’s 2018 Cloud Computing Survey, 73% of the companies have at least one application or a part of their computing foundation already in the cloud.
While this software eruption has generated a whole range of downstream impacts, it has also prompted software developers to become more and more valuable.
The growing value of developers has indicated that, like regular SaaS buyers before them, they also should intuit the importance of their time.
They should also frequently choose businesses that can help ease the hassles of acquisition, integration, management, and services.
The developer requires to address those hassles that are specialized.
They see to blend products into their applications genuinely, and for that, they need to control an Application Programming Interface or API.
Best methods for API onboarding include technical documentation, examples, and sandbox conditions to test.
APIs also tends to offer metered billing upfront.
Due to these and various other reasons, APIs are a discrete subset of SaaS.
Billion-dollar businesses creating APIs
It is likely that many consumer and business apps like Uber, Airbnb, PayPal, and many more, have plenty of third-party APIs and developer services operating in the background.
The entrepreneurs behind these API-first organizations like Twilio, Segment, Scale and several others are developing sustainable, independent and big businesses.
Before and now
Accel’s initial API investment was in Braintree, it was a mobile and web payment method for e-commerce companies, back in 2011.
While SaaS may have explored the concept that the best way to do business is not to build everything in-house, today, we see APIs expand this theme.
Accel strongly believes that APIs are the next big SaaS wave, having if not more but as much as energy as its predecessor.
This is thanks to the developers at today’s fastest-growing startups and their choice for API-first products.
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