Here’s what I’m seeing in the software industry right now.
Some SaaS companies were hit hard this year, for sure. But many software companies are doing better this year–because of or despite the Covid-19 crisis.
50% of software CEOs I have talked to are having their best months ever and are hiring steadily. They capitalized on the new demand in the crisis and responded fast to create new opportunities.
30% of software companies have lower revenue this quarter and are seeing business activity come back. Many are pivoting to higher-performing categories and target markets or have made aggressive business model changes.
20% of SaaS companies were hit hard with substantial layoffs and business changes. They couldn’t respond to adjust their business to the new world fast enough.
I don’t know of any up-and-running software businesses that have closed. Yet.
Most big software companies are doing great, which is why the stock market is doing so well. Expect the big software companies to get much bigger in the next few years.
Every software and SaaS company I know has made major changes faster than I have ever seen. This is a good thing.
Overall, there will be more SaaS winners than losers this year.