SaaS: A Mandate for Companies Looking for Innovation

Today, Software-as-a-Service refers to a huge number of digital solutions that allow companies to externally manage, own, and deliver software, and represents one of the fastest-growing segments of the economy.

SaaS uses the Cloud infrastructure to store data and allow users to access the service via the internet browser, from everywhere and without the need to download anything. One of the major benefits is that software never goes out of date, just keeps getting updated.

SaaS penetration has accelerated in recent years, disrupting almost every sector and vertical you can think of. E.g., Netflix has become the leader of the SaaS providers in the entertainment industry, with a subscription-based streaming service providing users with an infinity of movie and tv series accessible from any device, notably bankrupting established market leader Blockbuster Inc. In recent years many other companies embraced the Netflix business model and introduced their streaming services, such as Disney+, Amazon Prime Videos, and Sony LIV.

Tekion is disrupting the automotive industry by providing the first and fastest cloud-based and end-to-end automotive SaaS platform, including all functionalities of a dealer management system (DMS). Tekion was founded by the former CIO of Tesla, who was responsible for building Tesla’s digital and information systems and software platform of the EVs company. When he launched Tekion, he aimed to make the car buying experience more efficient while increasing profitability.

Tekion provides dealers with the IT infrastructure through which they can manage inventory, keep track of customers’ leases, sell additional services to clients, and review loan options. By efficiently communicating with all the key stakeholders in the automotive sector – dealers, car manufacturers, and customers- the platform provides a rich and unified consumer experience while avoiding losing valuable information. In addition, the platform keeps updating over time thanks to cutting-edge technologies such as Machine Learning, Artificial Intelligence, and IoT. Tekion’s shareholders include established automotive companies such as Hyundai, BMW, and General Motors.

Because of the huge amount of data to be stored in the cloud, companies may experience difficulties in managing and monitoring all the flows of information. End-to-end software Datadog helps companies by providing an integrated monitoring and analytics platform to process information in real-time and across different clouds. Flexibility and accessibility today are not just a benefit, but a mandate for companies that want to scale up globally and be able to adapt their business to rapid environmental changes. Datadog is used by companies of all sizes and industries, and it aims to increasingly democratize the use of the various tools offering an integrated interface where different teams can create, monitor, and gain valuable metrics on the company’s activities.

As reported by Gartner, the SaaS industry is worth about $145bn, and it is expected to experience its largest annual growth in 2022, reaching a value of $171.9bn by the end of the year. The benefits of the SaaS model are evident, and many companies are making the transition to a subscription-based service: By 2026, it is predicted that 50% of organizations will integrate SaaS application.

---

The information in this article should not be regarded as a description of services provided by Delian Partners SA. The opinions expressed in this article are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. It is only intended to provide education about the financial industry. The views reflected in this article are subject to change at any time without notice.

The Metaverse: The Next Evolution of the Internet and Social Media

One of the most popular topics of the latest months is the Metaverse. The Metaverse can be described as a hybrid world between the real and digital spaces, where virtual reality, augmented reality, and artificial intelligence work together to offer users a more immersive online experience.

Social media company Facebook recently changed its name to “Meta”, to highlight its shift from the social network space to the Metaverse one, projecting the whole segment in the spotlight. Meta’s CEO, Mark Zuckerberg, defined the Metaverse as a set of virtual spaces where people can create, explore, work, learn, and interact with others, whether they are in same place or not. The main difference from the traditional social platform is that, in the Metaverse, people will feel a more tangible sense of presence, thanks to a more immersive experience and the combination of innovative technologies such as AR and VR. For example, users will be able to attend a concert with thousands of other people directly from their couch or appear in a real meeting as a hologram.

Software giant Microsoft is also combining the real world with AR and VR, to provide users with a 3D platform for virtual meetings, called “Mesh for Teams”. Microsoft’s CEO Satya Nadella aims to create an enterprise metaverse: with the adoption of AI, users will be able to create their own avatar mirroring their body language, tone of voice and facial expressions. Additionally, users will be able to sit around a table in the same virtual 3D conference room, and change their clothes based on the specific situation.

One of the most successful players in the Metaverse is Roblox, an online gaming platform where millions of people create and share their own games. Roblox does not use AR or VR but is focusing on building an immersive world for its community – the platform has about 47 million DAU. Recently Nike announced a partnership with Roblox to offer a virtual 3D space called Nikeland where players can interact in free sport games and outfit their avatars with special Nike products. In addition to create a virtual place where people can come together to do millions of different activities such as learning, playing, and socializing, Roblox’s CEO David Baszucki aims also to build an online shopping platform empowered by its own virtual coin: the Robux currency.

According to Bloomberg Intelligence, the Metaverse is expected to be an $800billion market by 2024. Among the key factors expected to skyrocket market revenue growth over the next decades, is the synergy between fintech companies and tech giants. In addition, since it is impossible to build an immersive environment in a 2D world, specialized hardware companies will also benefit from the secular growth of the Metaverse.

---

The information in this article should not be regarded as a description of services provided by Delian Partners SA. The opinions expressed in this article are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. It is only intended to provide education about the financial industry. The views reflected in this article are subject to change at any time without notice.

Live Streaming is Replacing Traditional Media

Even if live streaming has been around for many years, it experienced a tremendous acceleration during the pandemic as people spent on average 30% more time engaging with their smartphones and media devices.

As technology and media consumption remains higher than pre-covid levels, the success of Live Streaming is growing on a global scale. One of the sectors in which it has been more successful is e-commerce: E-commerce consumption accelerated by three years during the pandemic, and the increased competition in the virtual space worked as a catalyst, pushing companies to improve their users’ online experience and catch their attention.

Chinese tech giant Alibaba was the pioneer of Live Streaming in e-commerce. Through the Live Streaming platform Taobao, Alibaba created a new personalized shopping experience, connecting companies with roughly 800 million monthly users who visit Alibaba’s e-commerce site. Taobao’s range of products available in live streaming has been growing massively and the platform is expanding its offer to those categories previously available only offline, such as cars and large appliances.

Live streaming has also become a key feature in the social media landscape. With 2.6 billion downloads, 1.6 billion worldwide users (including Duoyin), and 800 million monthly active users, TikTok is one of the fastest-growing social media platforms ever. What makes TikTok unique is its AI algorithm. Once a video is uploaded on the platform, the AI algorithm uses Natural Language Processing (NLP) to analyze and categorize the video – including audio, hashtag, and images, which allows TikTok to provide users with highly targeted content that they find most interesting. In this way, TikTok’ content can engage its new users for up to 10 minutes, which is three times the capability of Instagram.

Another example is the Amazon-owned platform Twitch, which hosts 91% of all video game streaming and provides the content of more than 4 million broadcasters, monthly. In a high-competitive video games landscape, Twitch differs for the “Just Chatting” category: Streamers can engage with the community and talk to viewers even when they are not playing any game. To understand the impressive growth of the platform, consider that Twitch peaked at around 1.7 billion hours watched in November 2020, versus Facebook’s all-time-high of 250 million in September.

The live streaming market can become the largest entertainment medium. As reported by TechJury, the global live streaming market is surpassing the traditional media ecosystem - such as TV or social media- and it is expected to be worth over $247B by 2027. The growth trajectory is supported by a secular shift in consumer habits, considering that 63% of people aged 18-34 watch live streaming content regularly.

---

The information in this article should not be regarded as a description of services provided by Delian Partners SA. The opinions expressed in this article are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. It is only intended to provide education about the financial industry. The views reflected in this article are subject to change at any time without notice.