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Indian companies in the spotlight, here’s a look at the future of SaaS

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The migration of enterprise software from an on-premise model to one hosted on a central cloud — a trend that started ~20 years ago with Salesforce as a torchbearer — has continued unabated, with much headroom left still. As a consequence, SaaS has been on a roll in recent times.

Bessemer’s State of the Cloud 2021 report reveals that the BVP Nasdaq Emerging Cloud Index, an index designed by the venture firm to track the performance of emerging public companies providing cloud software, crossed a record $2 trillion in value on February 5.

Median valuation multiples for SaaS companies went from ~10X of ARR in 2016 to ~30X in 2021. Today, exciting new SaaS companies continue to come up with increasing frequency[1].

Amidst this global SaaS boom, Indian companies have found their moment in the spotlight. There is no doubt that 2021 will be looked upon as a defining year for Indian SaaS, with companies like Zenoti, Chargebee, MindTickle, and BrowserStack, to name a few, joining the esteemed ‘unicorn club’ in the private markets, and Chennai-based Freshworks completing a successful IPO on Nasdaq at a valuation upwards of $10 billion.

As an early-stage VC fund, SaaS is – and will continue to be – an important investment theme for us. A couple of weeks into 2022, it’s a good time to step back and reflect on Indian SaaS – what it looks like today and what might lie in store in the future.

At present, there are four trends we find particularly exciting within the Indian SaaS ecosystem.

One, there is very high investor appetite for SaaS today, as compared to even five years ago; we are hard pressed to find an investment firm that isn’t willing to invest in early-stage SaaS companies. As these companies grow, they have also attracted investments from deep-pocketed global investors like Softbank, GGV, Insight, etc.

Two, a significantly matured SaaS ecosystem – founding teams often comprise seasoned operators who have ‘been there, done that’, and are able to scale their startups much faster than before. There is also much more tribal knowledge from founders who have scaled recently, and who actively want to give back.

Three, there is more than one flavour to India SaaS. Freshworks defined the first playbook, which centred on targeting US SMBs with a great product and unmatched customer success; today, we see companies selling to enterprise customers from the get-go, companies that are category creators, open-source companies, and companies going directly to their users as part of their GTM strategy

Last, the Indian startup ecosystem provides a fertile early adopter market for Indian SaaS startups. Scaled startups are sophisticated software buyers, opting for the best-in-breed from a global pool. Consequently, product maturity levels are higher, making Indian SaaS companies more competitive in global markets.

5 exciting themes for the future

Potential for AI-first software businesses

A confluence of simultaneous factors — an exponential increase in the availability of data, increased storage and bandwidth at reduced costs, increasing algorithmic sophistication — has created the perfect set of conditions for AI to create business value for narrowly defined problems, as opposed to an omnipresent general-purpose AI.

Such solutions help aid human judgement and lead to effectiveness gains, as opposed to the efficiency focus of traditional software. The magnitude of impact can therefore be far greater, and there is potential to reimagine business processes.

As such, we believe AI will lead to the next large category in software, akin to the cloud. We also believe that India, with a large pool of skilled manpower to aid with data and model management, as well as post-implementation support – which is a feature and not a bug – is primed to capitalise on this trend. 

Data-as-a-service (DaaS) businesses

Both the availability of data – driven by increased number of connected devices and reduced storage costs – and avenues for its consumption by organisations, with a focus on data-driven decision-making and input to AI systems, are growing exponentially.

That creates a massive opportunity for DaaS businesses. Within DaaS, we feel three characteristics can lead to differentiation and excitement: Providing non-trivial insights based on third-party or public data; aggregating data from several hard-to-access sources; and providing proprietary data. 

On the flip side, aggregating easily accessible third-party data is an insufficient base to build a meaningful business. Unlike SaaS, where the end state of the market often ends up being oligopolistic, data businesses are highly fragmented as entry barriers are lower.

It is important for DaaS companies to think proactively about what can help them transition to a more SaaS-like business. One good way of doing this is transitioning from being just a data provider to a workflow provider, something ZoomInfo has done very well.

Developer-focused software

There are a few tailwinds driving a shift towards more ‘developer-focused’ software. First, software has, and continues to, ‘eat the world’. Second, the rapid increase in the number of developers – it is expected that by 2030, there will be 100 million software engineers globally.

Third, the constant shortening of software development lifecycles, and a definite ‘left shift’ of operations, networking, and security into product development. Last, the increased buying power of developers, which has led to an emergence of more and more developer-focused companies in the last 18 months.

Specific themes we are excited about include data and ML Ops tools, low-code and API-led development tools, and autonomous/scriptless and continuous testing.

Platform BPO

India has created immense value by outsourcing repetitive tasks that do not necessarily require on-site execution, and has benefited from a large English-speaking, skilled, and cost-effective talent pool. Two trends are changing that.

One, machines can do 70-80 percent of what humans do in a traditional BPO. Two, the growth of flexible, on-demand work preferences has led to the creation of a no-fixed-resources model. As such, we are very bullish on the emergence of platform companies that are services-oriented in their revenue profile but highly product-oriented in their delivery.

Software for the bottom of the pyramid

There have been a number of trends in the last few years that have given rise to what is popularly known as the Product Led Growth (PLG) GTM motion. With the advent of Google AdWords, community marketing and the growth of App Store ecosystems, it has become easier to discover end users.

Increased adoption of software among solopreneurs and small business owners, and the increased empowerment of end users to buy/use their own software within an enterprise has given rise to a greater convergence between the buyer and user.

Lastly, the emergence of maturing product-led growth playbooks has resulted in customer conversions through smart nudges, thereby mitigating the need for manual interventions.

It is important to note that software is a global business, and no matter where you start, you need to compete against the best for creating institutions that last.

As Indian SaaS gets more global attention, scaled global players are taking leaves from the playbook of Indian companies. With remote/flexible work gaining steam, mature US SaaS companies are establishing significant Indian operations early on in their journeys. This only means that there is a greater onus on Indian companies to be futuristic, innovative, and execute to higher standards.

All things considered, there is tremendous potential for Indian SaaS companies for the foreseeable future. Here’s looking forward to many more Indian companies becoming market leaders and doing decacorn IPOs, and not just Freshworks!

The insights put forth in this article have been gathered from a discussion between senior executives from the industry, who are part of the Stellaris Founder Network.

Edited by Teja Lele Desai

(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)

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8 Ways You Can Save Yourself and Others From Being Scammed

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Opinions expressed by Entrepreneur contributors are their own.

Statistics on the number of scam websites that litter the internet are disturbing. During 2020, Google registered more than 2 million phishing websites alone. That means more than 5,000 new phishing sites popped up every day — not to mention the ones that avoided Google’s detection. In 2021, the U.S. Federal Bureau of Investigation (FBI) reported nearly $7 billion in losses from cybercrime that is perpetrated through these sites.

What exactly are scam websites? Scam websites refer to any illegitimate website that is used to deceive users into fraud or malicious attacks. Many scammers operate these fake websites and will download viruses onto your computer or steal passwords or other personal information.

Reporting these sites as they are encountered is an important part of fighting back. In other words, if you see something, say something. Keeping quiet, even if you avoid falling prey, allows the scammers to aim at another target.

Perhaps you’ve received a suspicious link in an email? Or maybe a strange text message that you haven’t clicked on. Fortunately, there are many organizations out there that have launched efforts aimed at reducing the threat that they pose. In general, these organizations put scam websites on the radar by collecting and sharing information about them. In some cases, they prompt an investigation into the scammers behind the sites.

Related: Learn How to Protect Your Business From Cybercrime

It’s free to report a suspicious website you’ve encountered, and it takes just a minute. Here are eight ways you can report a suspected scam website to stop cyber criminals and protect yourself and others online.

1. The Internet Crime Complaint Center

The IC3, as it is known, is an office of the FBI that receives complaints from those who have been the victims of internet-related crime. The IC3 defines the internet crimes that it addresses to include illegal activity involving websites. Complaints filed with the IC3 are reviewed and researched by trained FBI analysts.

2. Cybersecurity and Infrastructure Security Agency

CISA, which is an agency of the U.S. Department of Homeland Security, targets a wide range of malicious cyber activity. It specifically requests reports on phishing activity utilizing fraudulent websites. Information provided to CISA is shared with the Anti-Phishing Working Group, a non-profit focused on reducing the impact of phishing-related fraud around the world.

3. econsumer.gov

The econsumer.gov site, run by the International Consumer Protection and Enforcement Network, is for reporting international scams. It is supported by consumer protection agencies and related offices in more than 65 countries. A secure version of their site is used by law enforcement agencies to share info on scams.

4. Google Safe Browsing

While Google does not have a mechanism for reporting all varieties of website scams, there is a form for reporting sites that are suspected of being used to carry out phishing. Reports made via the form are managed by Google’s Safe Browsing team. Google’s Transparency Report provides information on the sites that it has determined to be “currently dangerous to visit.”

Related: Is That Instagram Email a Phishing Attack? Now You Can Find Out.

5. PhishTank

This service was founded by Cisco Talos Intelligence Group to “pour sunshine on some of the dark alleys of the Internet.” Phishtank includes an ever-growing list of URLs reported as being involved in phishing scams. To date, it has received more than 7.5 million reports of potential phishing sites. It says that more than 100,000 of the sites are still online.

Related: 6 Ways Better Business Bureau Accreditation Can Boost Your Business

6. Antivirus Apps

Antivirus providers such as Norton, Kaspersky, and McAfee have forms that can be used to identify pages that users feel should be blocked. Scam sites would definitely fall under that category. With some antivirus platforms, reporting forms can only be accessed by registered users. Norton’s is open to anyone.

7. Web host

There is a chance that the DNS service hosting the scam site will take action to shut it down. There are a variety of online resources that can help you to find the DNS of a particular site. Once you identify it, send a message to their customer service reporting the site in question and the experience that you had.

8. Share your experience on social media

This is actually more like sounding an alarm than filing a report, but it might protect one of your connections who stumbles upon the same site or is targeted by the same type of scam. At the very least, it could draw attention to the fact that scam sites affect real people. A post on Facebook about a close call you had with a scam might better equip your network to avoid any dangerous entanglements. If it does, they’ll thank you.

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LastPass hacked, OpenAI opens access to ChatGPT, and Kanye gets suspended from Twitter (again) • TechCrunch

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Aaaaand we’re back! With our Thanksgiving mini-hiatus behind us, it’s time for another edition of Week in Review — the newsletter where we quickly wrap up the most read TechCrunch stories from the past seven(ish) days. No matter how busy you are, it should give you a pretty good idea of what people were talking about in tech this week.

Want it in your inbox every Saturday morning? Sign up here.

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Instafest goes instaviral: You’ve probably been to a great music festival before. But have you been to one made just for you? Probably not. Instafest, a web app that went super viral this week, helps you daydream about what that festival might look like. Sign in with your Spotify credentials and it’ll generate a promo poster for a pretend festival based on your listening habits.

LastPass breached (again): “Password manager LastPass said it’s investigating a security incident after its systems were compromised for the second time this year,” writes Zack Whittaker. Investigations are still underway, which unfortunately means it’s not super clear what (and whose) data might’ve been accessed.

ChatGPT opens up: This week, OpenAI widely opened up access to ChatGPT, which lets you interact with their new language-generation AI through a simple chat-style interface. In other words, it lets you generate (sometimes scarily well-written) passages of text by chatting with a robot. Darrell used it to instantly write the Pokémon cheat sheet he’s always wanted.

AWS re:Invents: This week, Amazon Web Services hosted its annual re:Invent conference, where the company shows off what’s next for the cloud computing platform that powers a massive chunk of the internet. This year’s highlights? A low-code tool for serverless apps, a pledge to give AWS customers control over where in the world their data is stored (to help navigate increasingly complicated government policies), and a tool to run “city-sized simulations” in the cloud.

Twitter suspends Kanye (again): “Elon Musk has suspended Kanye West’s (aka Ye) Twitter account after the latter posted antisemitic tweets and violated the platform’s rules,” writes Ivan Mehta.

Spotify Wraps it up: Each year in December, Spotify ships “Wrapped” — an interactive feature that takes your Spotify listening data for the year and presents it in a super visual way. This year it’s got the straightforward stuff like how many minutes you streamed, but it’s also branching out with ideas like “listening personalities” — a Myers-Briggs-inspired system that puts each user into one of 16 camps, like “the Adventurer” or “the Replayer.”

DoorDash layoffs: I was hoping to go a week without a layoffs story cracking the list. Alas, DoorDash confirmed this week that it’s laying off 1,250 people, with CEO Tony Xu explaining that they hired too quickly during the pandemic.

Salesforce co-CEO steps down: “In one week last December, [Bret Taylor] was named board chair at Twitter and co-CEO at Salesforce,” writes Ron Miller. “One year later, he doesn’t have either job.” Taylor says he has “decided to return to [his] entrepreneurial roots.”

audio roundup

I expected things to be a little quiet in TC Podcast land last week because of the holiday, but we somehow still had great shows! Ron Miller and Rita Liao joined Darrell Etherington on The TechCrunch Podcast to talk about the departure of Salesforce’s co-CEO and China’s “great wall of porn”; Team Chain Reaction shared an interview with Nikil Viswanathan, CEO of web3 development platform Alchemy; and the ever-lovely Equity crew talked about everything from Sam Bankman-Fried’s wild interview at DealBook to why all three of the co-founders at financing startup Pipe stepped down simultaneously.

TechCrunch+

What lies behind the TC+ members-only paywall? Here’s what TC+ members were reading most this week:

Lessons for raising $10M without giving up a board seat: Reclaim.ai has raised $10 million over the last two years, all “without giving up a single board seat.” How? Reclaim.ai co-founder Henry Shapiro shares his insights.

Consultants are the new nontraditional VC: “Why are so many consultant-led venture capital funds launching now?” asks Rebecca Szkutak.

Fundraising in times of greater VC scrutiny: “Founders may be discouraged in this environment, but they need to remember that they have ‘currency,’ too,” writes DocSend co-founder and former CEO Russ Heddleston.

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Building global, scalable metaverse applications

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Previously we talked about the trillion-dollar infrastructure opportunity that comes with building the metaverse — and it is indeed very large. But what about the applications that will run on top of this new infrastructure?

Metaverse applications will be very different from the traditional web or mobile apps that we are used to today. For one, they will be much more immersive and interactive, blurring the lines between the virtual and physical worlds. And because of the distributed nature of the metaverse, they will also need to be able to scale globally — something that has never been done before at this level.

In this article, we will take a developer’s perspective and explore what it will take to build global, scalable metaverse applications.

As you are aware, the metaverse will work very differently from the web or mobile apps we have today. For one, it is distributed, meaning there is no central server that controls everything. This has a number of implications for developers:

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  • They will need to be able to deal with data that is spread out across many different servers (or “nodes”) in a decentralized manner.
  • They will need to be able to deal with users that are also spread out across many different servers.
  • They will need to be able to deal with the fact that each user may have a different experience of the metaverse, based on their location and the devices they are using due to the fact not everyone has the same tech setup, and this plays a pivotal role in how the metaverse is experienced by each user.

These challenges are not insurmountable, but they do require a different way of thinking about application development. Let’s take a closer look at each one.

Data control and manipulation

In a traditional web or mobile app, all the data is stored on a central server. This makes it easy for developers to query and manipulate that data because everything is in one place.

In a distributed metaverse, however, data is spread out across many different servers. This means that developers will need to find new ways to query and manipulate data that is not centrally located.

One way to do this is through the blockchain itself. This distributed ledger, as you know, is spread out across many different servers and allows developers to query and manipulate data in a decentralized manner.

Another way to deal with the challenge of data is through what is known as “content delivery networks” (CDNs). These are networks of servers that are designed to deliver content to users in a fast and efficient manner.

CDNs are often used to deliver web content, but they can also be used to deliver metaverse content. This is because CDNs are designed to deal with large amounts of data that need to be delivered quickly and efficiently — something that is essential for metaverse applications.

Users and devices

Another challenge that developers will need to face is the fact that users and devices are also spread out across many different servers. This means that developers will need to find ways to deliver content to users in a way that is efficient and effective.

One way to do this is through the use of “mirrors.” Mirrors are copies of the content that are stored on different servers. When a user requests content, they are redirected to the nearest mirror, which helps to improve performance and reduce latency.

When a user’s device is not able to connect to the server that is hosting the content, another way to deliver content is through “proxies.” Proxies are servers that act on behalf of the user’s device and fetch the content from the server that is hosting it.

This can be done in a number of ways, but one common way is through the use of a “reverse proxy.” In this case, the proxy server is located between the user’s device and the server that is hosting the content. The proxy fetches the content from the server and then delivers it to the user’s device.

Location and devices

As we mentioned before, each user’s experience of the metaverse will be different based on their location and the devices they are using. This is because not everyone has the same tech setup, and this plays a pivotal role in how the metaverse is experienced by each user.

For example, someone who is using a virtual reality headset will have a completely different experience than someone who is just using a desktop computer. And someone who is located in Europe will have a different experience than someone who is located in Asia.

Though it may not be obvious why geographical location would play a part in something that is meant to be boundless, think of it this way. The internet is a physical infrastructure that is spread out across the world. And although the metaverse is not bound by the same physical limitations, it still relies on this infrastructure to function.

This means that developers will need to take into account the different geographical locations of their users and devices and design their applications accordingly. They will need to be able to deliver content quickly and efficiently to users all over the world, regardless of their location.

Different geographical locations also have different laws and regulations. This is something that developers will need to be aware of when designing applications for the metaverse. They will need to make sure that their applications are compliant with all applicable laws and regulations.

Application development

Now that we’ve looked at some of the challenges that developers will need to face, let’s take a look at how they can develop metaverse applications. Since the metaverse is virtual, the type of development that is required is different from traditional application development.

The first thing that developers will need to do is to create a “space”. A space is a virtual environment that is used to host applications.

Spaces are created using a variety of different tools, but the most popular tool currently is Unity, a game engine used to create 3D environments.

Once a space has been created, developers will need to populate it with content. This content can be anything from 3D models to audio files.

The next step is to publish the space. This means that the space will be made available to other users, who will be able to access the space through a variety of different devices, including desktop computers, laptops, tablets, and smartphones.

Finally, developers will need to promote their space. This means that they will need to market their space to users.

Getting applications to scale

Since web 3.0 is decentralized, scalability is usually the biggest challenge because traditional servers are almost impossible to use. IPFS is one solution that can help with this problem.

IPFS is a distributed file system used to store and share files. IPFS is similar to BitTorrent, but it is designed to be used for file storage rather than file sharing.

IPFS is a peer-to-peer system, which means that there is no central server. This makes IPFS very scalable because there is no single point of failure.

To use IPFS, developers will need to install it on their computer and add their space to the network. Then, other users will be able to access it.

The bottom line on building global, scalable metaverse applications

To finish off, the technology to build scalable metaverse applications already exists; but a lot of creativity is still required to make it all work together in a user-friendly way. The key is to keep the following concepts in mind:

  • The metaverse is global and decentralized
  • Users will access the metaverse through a variety of devices
  • Location and device management are important
  • Application development is different from traditional development
  • Scalability is a challenge, but IPFS can help

Clearly, we can’t have an article series about building the metaverse without discussing NFTs. In fact, these might be the key to making a global, decentralized, metaverse work. In our next article, we will explore how NFTs can be used in the metaverse.

By keeping these concepts in mind, developers will be able to create metaverse applications that are both user-friendly and scalable.

Daniel Saito is CEO and cofounder of StrongNode

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