Skip to main content
Log In
Alger
  • About Alger
    • Our History
      Our Investment Approach
      Investment Team
      Careers
      Commitment to Sustainability
      Commitment to DEI
      Charitable Giving
      We Remember
  • Strategies
    • Strategies Overview
      Asset Classes
      Vehicles
      Strategy Finder
      Think Further For Retirement
      Large Cap
      Mid Cap
      Small/SMid Cap
      International
      Alternatives
      Specialty
      Focus
      Mutual Funds
      ETFs
      SMAs
      Institutional Separate Accounts
      UCITS
      Collective Investment Trusts
  • Insights
    • Insights
      Blogs
      Alger On the Money
      Alger On the Record
      Manager Commentary
      Capital Markets Outlook
      Retirement Solutions
      Viewpoints
      The Power of Focus
      Perspectives on Growth & Change
      Market Strategy Insights
      Insights on Emerging Markets
  • Newsroom
    Press ReleasesIn the News
  • Contact Us
AlgerOn theMoney
.st0 { fill: #999999; } Explore Insights .st0 { fill: #999999; } Subscribe to Emails .st0 { fill: #999999; } .st0 { fill: #999999; } Download PDF

At Your Service

Unlocking the potential of SaaS: Discover how SaaS is revolutionizing the software industry and why investors may want to understand the potential opportunities for the future.

At its core, Software-as-a-Service (SaaS) is a way of providing access to applications over the internet. Further, SaaS has become an essential part of the software industry, with businesses relying on SaaS applications to improve efficiency and operations. What are the key drivers that have advanced SaaS adoption and how might investors be positioned to capitalize on future industry growth?​

​​

​​​​Chart showing Public Cloud Application SaaS Spending​​​​​​​
​​​
​​​​
  • Some of the most common SaaS applications include customer relationship management (CRM), enterprise resources planning and e-commerce. SaaS has many potential advantages including flexibility, scalability, predictability, and affordability. Not only can SaaS providers give access to users anywhere in the world, but it is also a cheaper alternative for many businesses. This is because SaaS customers no longer need to invest in expensive on-premises software products up-front and can instead opt-into a recurring payment stream which can grow with their needs.
  • As a result, this recurring revenue model has allowed SaaS companies to scale quickly thanks to the low incremental cost of servicing additional customers. Referencing the chart above, the overall SaaS market from 2015 through 2021 saw a compounded annual growth rate (CAGR) of 29%, according to Gartner. Moreover, the global SaaS market is projected to reach $702 billion by 2030 (or a 20% CAGR), according to Allied Market Research.
  • Innovative industries, such as SaaS, tend to experience growth during challenging economic environments, making them potentially less impacted by a recession (see our note​ on ​ Wh​at Is Recession R​esistant?​). We believe SaaS, in particular, should be more impervious to economic weakness because once applications and workloads are implemented, customers are likely to avoid the headache of switching providers or paying the high cost of on-premises software deployment. With potential strong long-term growth and valuation multiples less expensive than they have been in years, SaaS companies appear attractive, in our view. ​​
​

Recommended Insights for You:

​​
​​​The views expressed are the views of Fred Alger Management, LLC (“FAM”) and its affiliates as of January ​2023​​. These views are subject to change at any time and may not represent the views of all portfolio management teams. These views should not be interpreted as a guarantee of the future performance of the markets, any security or any funds managed by FAM. These views are not meant to provide investment advice and should not be considered a ​recommendation to purchase or sell securities. ​​Alger pays compensation to third party marketers to sell various strategies to prospective investors. ​

​​ Risk Disclosures: Investing in the stock market involves certain risks, including the potential loss of principal.​ Growth stocks may be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness such as COVID-19 or other public health issues, recessions, or other events could have a significant impact on investments. Past performance is not indicative of future performance.​ Investors whose reference currency differs from that in which the underlying assets are invested may be subject to exchange rate movements that alter the value of their investments.

This information is general in nature and should not be construed as legal or tax advice. Alger makes no warranties with regard to such information or the results obtained by its use. Alger disclaims any liability arising out of your use of, or any tax position, taken in reliance on such information. Always consult an attorney or qualified tax professional regarding your specific legal or tax situation.
​
​​Important Information for US Investors: This material must be accompanied by the most recent fund fact sheet(s) if used in connection with the sale of mutual fund and ETF shares. Fred Alger & Company, LLC serves as distributor of the Alger mutual funds ​

Important Information for UK and EU Investors: This material is directed at investment professionals and qualified investors (as defined by MiFID/FCA regulations). It is for information purposes only and has been prepared and is made available for the benefit in​vestors. This material does not constitute an offer or solicitation to any person in any jurisdiction in which it is not authorised or permitted, or to anyone who would be an unlawful recipient, and is only intended for use by original recipients and addressees. The original recipient is solely responsible for any actions in further distributing this material and should be satisfied in doing so that there is no breach of local legislation or regulation. ​

​Certain products may be subject to restrictions with regard to certain persons or in certain countries under national regulations applicable to such persons or countries.

​Alger Management, Ltd. (company house number 8634056, domiciled at 78 Brook Street, London W1K 5EF, UK) is authorised and regulated by the Financial Conduct Authority, for the distribution of regulated financial products and services. FAM and/or Weatherbie Capital, LLC, U.S. registered investment advisors, serve as sub-portfolio manager to financial products distributed by Alger Management, Ltd.

Alger Group Holdings, LLC (parent company of FAM and Alger Management, Ltd.), FAM, and Fred Alger & Company, LLC are not authorized persons for the purposes of the Financial Services and Markets Act 2000 of the United Kingdom (“FSMA”) and this material has not been approved by an authorized person for the purposes of Section 21(2)(b) of the FSMA.
​
Important Information​ for Investors in Israel: This material is provided in Israel only to investors of the type listed in the first schedule of the Securities Law, 1968 (the “Securities Law”) and the Regulation of Investment Advice, Investment Marketing and Investment Portfolio Management Law, 1995. The Fund units will not be sold to investors who are not of the type listed in the first schedule of the Securities Law.
​
Gartner, Inc is a technological research and consulting firm based that conducts research on technology and shares this research both through private consulting as well as executive programs and conferences. Its clients include large corporations, government agencies, technology companies, and investment firms.

Allied Market Research is a global market research and business consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with “Market Research Reports” and “Business Intelligence Solutions”.

​ Fre​d Alger & Company, LLC 100 Pearl Street, New York, NY 10004 / www.alger.com​
​ 800.305.8547 (Retail) / 800.223.3810 (Institutional)​


RecommendedContent Title

ETF Investors

This ETF is different from traditional ETFs.

Traditional ETFs tell the public what assets they hold each day. This ETF will not. This may create additional risks for your investment. Specifically:

You may have to pay more money to trade the ETF’s shares. This ETF will provide less information to traders, who tend to charge more for trades when they have less information.

The price you pay to buy ETF shares on an exchange may not match the value of the ETF’s portfolio. The same is true when you sell shares. These price differences may be greater for this ETF compared to other ETFs because it provides less information to traders.

These additional risks may be even greater in bad or uncertain market conditions.

The differences between this ETF and other ETFs may also have advantages. By keeping certain information about the ETF confidential, this ETF may face less risk that other traders can predict or copy its investment strategy. This may improve the ETF’s performance. If other traders are able to copy or predict the ETF’s investment strategy, however, this may hurt the ETF’s performance. For additional information regarding the unique attributes and risks of this ETF, please refer to the prospectus.

ABOUT ALGER

  • Our History
  • Our Investment Approach
  • Investment Team
  • Careers
  • Charitable Giving
  • We Remember
  • Think Further
  • Documents & Forms
  • Fund Literature
  • FAQs

ESG

  • Commitment to Sustainability
  • Alger's Approach to ESG Investing and Oversight
  • Weatherbie’s Approach to ESG Investing and Oversight
  • Redwood's Approach to Responsible Investing
  • Diversity, Equity and Inclusion Statement

ASSET CLASSES

  • Large Cap
  • Mid Cap
  • Small/SMid Cap
  • International
  • Alternatives
  • Specialty
  • Focus

VEHICLES

  • Mutual Funds
  • ETFs
  • SMAs
  • Institutional Separate Accounts
  • UCITS
  • Collective Investment Trusts

TOOLS

  • Strategy Finder
  • 10 Year Estimator
  • Quarterly Expense Estimator

INSIGHTS

  • Featured Insights
  • Capital Markets Outlook
  • Alger On the Money
  • Alger On the Record
  • The Alger Podcast
  • Think Further for Retirement
  • Search All Insights

NEWSROOM

  • Press Releases
  • In the News

LITERATURE

  • Mutual Funds
  • SMAs
  • Institutional Separate Accounts
  • UCITS

CONTACT US

  • All Inquiries

LEGAL NOTICES

  • Proxy Information
  • 2024 Dividends & Distribution Information
  • Sales Charges
  • Customer Relationship Summaries
  • UK Investor Report
  • Form ADVs
View Mobile Site

Copyright Alger All Rights Reserved Privacy Policy Business Continuity Terms and Conditions
youtube channel LinkedIn Instagram