SaaS?

Software-as-a-Service businesses are New Zealand’s most powerful driver of economic growth

What is SaaS?

SaaS stands for Software as a Service — a fancy way of saying software you use online instead of buying, installing, and maintaining it yourself.

It’s the modern, subscription‑based way to get powerful tech without the setup stress or server headaches. You just log in, get to work, and let the provider handle the tricky bits.

Since the early days of the internet, SaaS has become the go‑to model for how software is built, sold, and used around the world.

SaaS companies are the folks behind those tools — businesses that live and breathe online software as their core model. In New Zealand, “SaaS company” now often means something bigger: founders building clever products here at home, with global ambition and impact.

Some of our New Zealand SaaS heroes

Why does SaaS matter to New Zealand?

New Zealand’s SaaS sector is booming — earning $3.6 billion in revenue in 2023 alone.

According to the 2024 Insights from the Cloud report, researchers analysed 743 home‑grown SaaS businesses and found the sector growing at a 15 percent compound annual growth rate since 2016. At that pace, it’s on track to reach $9.7 billion in revenue by 2030.

Around 10 percent of companies — roughly 75 in total — generate nearly 70 percent of the sector’s revenue. These high‑growth Kiwi success stories, including Xero, Pushpay, Seequent, and Serko, achieve an impressive $305,000 average revenue per full‑time employee.

But the real story sits in the other 90 percent — **hundreds of ambitious SMEs earning under 10 million ARR. These 688 scale‑ups are the next wave of SaaS success. Right now, around seven of them break through the 10 million ARR mark each year — proof that steady, sustainable growth from Aotearoa is absolutely possible.

Together, this mix of scale‑ups and global players makes SaaS one of New Zealand’s most vibrant, high‑potential export industries — a world‑class sector being built right here at home.