Global SaaS Industry to be Worth $60.36 Billion by end of 2023

• 📸 Canon departs from hardware products with the introduction of Kokomo: software allowing users to make real-time 3D video calls using popular consumer VR headsets and a smartphone companion app.

• 🌧️ Salesforce’s Q3 revenue increased by 14% YoY, despite plans for layoffs and office closures.

• 📈 The global SaaS industry is expected to be worth $60.36 billion by 2023, and 85% of corporate apps are expected to be based on SaaS by 2025.

Canon’s Kokomo VR software enables real-time 3D video calls

• Canon has developed Kokomo, a VR meeting software package that allows users to make real-time 3D video calls

• Users wear a VR headset and point a smartphone at themselves, and the software scans their face to create a 3D avatar for the call

• The software captures the avatar’s movement and places it in a photo-realistic space, allowing users to feel present with the person they are calling

• Read more about it here

Salesforce to Lay Off 8,000 Employees in Restructuring Plan

• Salesforce has announced plans to lay off 10% of its workforce (around 8,000 employees) as the company faces challenges in the current operating environment.

• The layoffs and office closures come as Salesforce CFO Amy Weaver warned of intense customer scrutiny over software spending during the company’s most recent earnings call.

• The restructuring plan is expected to cost up to $2.1 billion and will be completed by the end of fiscal year 2024.

• Salesforce also plans to reduce physical offices in certain markets, incurring up to $650 million in exit charges.

• Despite the challenges and cost-cutting measures, Salesforce reported strong Q3 revenue for the period ending October 31, reaching $7.84 billion, a YoY increase of 14%.

• Read more about it here

SaaS Industry Trends for 2023

• Gartner predicts the industry to grow 16.8% in 2023 and estimates the global SaaS industry will be worth $60.36 billion by the end of the year.

• By 2025, 85% of corporate apps are expected to be based on SaaS. The popularity of SaaS has increased due to the demands of the contemporary work environment, including remote work and the need for collaboration and platform tools

• SaaS is becoming more industry-specific and catering to specific needs, such as micro SaaS apps for specific industries or even sub-industries

• SaaS is also expected to become more decoupled and unbundled, allowing users to choose specific features rather than bundled packages

• Artificial intelligence and machine learning are expected to play a larger role in SaaS, including through the use of chatbots and virtual assistants

• Read more about it here

• LA-based Mangomint has raised $13m in a Series A round. Mangomint has developed a software-as-a-service tool that streamlines booking for the beauty industry, including spas, massage parlours and tattoo studios.

• Onc.AI, a medical technology company developing a digital clinical management platform for immuno-oncology, has raised $25m in a Series A funding round co-led by MassMutual and Action Potential Venture Capital.

👋 That is all for this week -- thank you for reading!

Keep an eye out for next week’s update for more software news and insights.