Scalability and Growth in Saudi PaaS Market

Platform-as-a-service (PaaS) businesses have become increasingly popular, especially with the rise of e-commerce and the need to operate in the cloud. These platforms have made it easier to digitize operations without needing any digital expertise and without the burden of on-site infrastructure and costs.

According to Harvard Business Review, the impact of three technologies, cloud, social, and mobile, led to the emergence and continuing success of PaaS. They created a worldwide network of entrepreneurs, professionals, and consumers who can start businesses, share content, and purchase goods and services.

1. The cloud provides a platform for worldwide production, enabling individuals to create content and applications for a global audience. 
2. Social networks connect people across the globe and enable them to maintain their online identity. 
3. Mobile technology connects to this global infrastructure anytime, anywhere.

The barrier to entry in the Saudi Arabia PaaS market is low. However, some factors of success, such as scaling and sustaining a platform and ensuring customer success are what really put a platform on the map. 

PaaS scalability in Saudi Arabia

First, understanding the different types of platforms is crucial to know where they are positioned in the PaaS market. Platforms change depending on the desired transaction. For example, Shopify, Etsy, and even Squarespace allow users to start, grow, and manage businesses online. These product platforms have all witnessed success and scalability and have contributed to the global e-commerce revenue, which is expected to grow to $5.4 trillion by 2022, according to this e-commerce sales report by Statista for 2014-2026.

The ability to scale PaaS depends on the ability to acquire at least 1000 recurring retailers and businesses collaborating with the platform. Several important factors may contribute to the success of a PaaS business model, and a major one is building a network effect. Simply put, a network effect is when the value of a platform increases as the network of people and businesses join and use it.

There are two ways to build a network effect in PaaS: through APIs (Application Programming Interfaces) or app markets.

1. APIs allow developers to add to existing platforms. By exposing APIs, PaaS providers can create an ecosystem of developers who build new applications and services on top of the existing ones. This creates a horizontal network effect where the value increases as more developers build on top of it and use it.
2. App markets let businesses discover and install applications built by others. The platform value increases as more people and companies use and share these applications, which results in a vertical network effect.

Innovation efforts in Saudi

In the Saudi market, innovation is not lacking. Technical capabilities are strong, and a growth mindset and the ability to keep up with the global market are apparent. This is seen with platforms like Zid that provide services that include digitally setting up and managing your business, covering everything from sales and marketing to last-mile delivery. In many cases, the need for a physical shop to run operations—apart from storage—has become almost unnecessary, especially for an early-stage startup.

Many traditional businesses can step into the new era of e-commerce without having to deal with the mess of having all their resources scattered around the office, but rather operate from one platform. 

For example, Zid’s shipping solutions platforms facilitate the obstacles and challenges imposed on the merchant when dealing with several shipping companies and enable them to manage shipping operations from a single control panel to operate these features. Also, Careem, operating in the MENA region, connects drivers with passengers. Mrsool is another successful PaaS that connects restaurants with riders in Saudi and Egypt. And Ejaro's peer-to-peer vehicle-sharing platform is dedicated to connecting people who have a car with those who are looking to rent one in Saudi and the GCC.

Talent platforms like Sabbar or Bayt.com have helped many HR professionals connect companies with freelance talents, allowing businesses to access specialized skills and talent without having to hire full-time employees. Additionally, there are accommodation marketplaces such as Gathern or PropertyFinder that connect property owners with willing renters, providing an easy and convenient way for people to find and rent a place to stay.

PaaS allows users, whether businesses or individuals, to connect with a wide range of service providers and customers to solve their specific needs without consuming valuable time and resources. Users can, therefore, benefit from the convenience and efficiency that PaaS provides.

Customer Success

The services and solutions that a platform provides are two defining success factors. However, customer success means the success of the business as well.

Building trust is vital when growing any community. Startups in the Saudi Arabia PaaS market have plenty of innovation, however, they can also implement the following changes to the way they run their customer relations for further growth and scalability: 

• Improve brand awareness by leveraging social media platforms, collaborating with influencers or industry experts, and participating in relevant events or conferences.
• Implement protocol and security and privacy protocols, providing clear and transparent terms of use, and being responsive to customer inquiries.
• Engage with their customers to seek out feedback. 
• Enhance the platform based on customer feedback, while also responding to the market to meet its real needs.

Ultimately, the combination of cloud, social, and mobile technologies, coupled with a focus on customer success, provides the necessary tools to have a scalable PaaS platform that can take advantage of the many opportunities in the Saudi Arabian market. With innovation at the forefront, the sky's the limit for PaaS platforms that can successfully navigate the challenges of the digital landscape while delivering value to their customers.