The Software as a Service (SaaS) landscape is undergoing a deep transformation as workflows are automated, costs are compressed, and traditional per-seat licensing models are challenged. With AI-native tools increasingly handling tasks like customer support, financial entries, and content creation, companies are cutting back on traditional software licenses. This shift threatens traditional SaaS providers whose value propositions rely on human-centric interfaces and modular features, now being commoditised by AI agents and APIs.
For Zoho, the answer lies in redefining SaaS through integration, contextual intelligence, and user experience.
“AI is automating many SaaS features, but that doesn’t mean SaaS becomes a commodity,” said Gibu Mathew, VP and GM, Zoho APAC, during the company’s Zoholics Hong Kong conference. “The true value of AI lies in how we can increase application user experience. Zoho delivers this through an integrated suite of 55+ apps that work seamlessly across business functions, giving customers connected workflows out of the box.”
Strong Growth Trajectory in APAC and Hong Kong
Despite fears of commoditisation, the SaaS market is expanding rapidly. Globally, it is projected to maintain a double-digit CAGR as businesses modernise their digital infrastructure.
“In APAC, SaaS growth is close to 16% CAGR, driven by SMEs adopting cloud-first strategies and governments pushing digital transformation, like e-invoicing mandates in Singapore and Malaysia,” Mathew said. “Hong Kong doesn’t just adopt SaaS, it accelerates its spread, thanks to advanced infrastructure, policy support, and its role as a hub for regional and global businesses.”
According to Statista, Hong Kong’s SaaS market is expected to nearly triple from US$1.32 billion in 2025 to US$3.24 billion by 2030, representing almost 20% CAGR. By that year, AI-powered solutions could generate US$36.7 billion in economic benefits for businesses in the city.
Zoho itself reported 16% year-on-year revenue growth in Hong Kong in 2024, reflecting rising adoption of its enterprise SaaS portfolio.
Reinventing CRM
Customer relationship management (CRM) is one area that Zoho is focusing on. Zoho’s solution, CRM for Everyone, “is a revolution in CRM that brings all teams together across the sales cycle,” Mathew said. “With team modules, each team gets their own set of modules to extract, update, and push the information they work with,” he added.
By consolidating every interaction – from marketing to sales, support, and billing – Zoho aims to provide businesses with a holistic customer view. “This empowers teams to personalise experiences and make better-informed decisions,” he added.
The latest iteration of CRM for Everyone integrates Zoho’s in-house AI engine, Zia, enabling no-code workflow creation, automated reporting, and orchestration across teams.
Competing in a Crowded Market
Hong Kong’s SaaS sector is also one of the most competitive, with global heavyweights like Microsoft and Salesforce entrenched alongside nimble local providers. Zoho believes its integrated design and privacy-first approach offer a winning edge.
“First, we offer one of the broadest sets of business applications on a single platform,” Mathew explained. “Second, we are privacy- and security-focused, with no ad-driven business model, which builds long-term trust with customers. And third, because all our apps are built on the same technology stack, the backend integration and unified data model make our AI far more effective in real-world B2B scenarios.”
Betting on AI
At Zoholics Hong Kong, Zoho also introduced Zia LLM, its proprietary large language model (LLM) built on NVIDIA’s AI accelerated computing platform. Designed for business workflows, Zia LLM is trained on Zoho product use cases such as structured data extraction, summarisation, and code generation Unlike generic LLMs, Zia prioritises customer privacy by keeping data within Zoho’s servers. “We believe the future of AI in SaaS isn’t just about power,” Mathew said. “It’s about right-sizing models, embedding them contextually, and ensuring they serve real business needs without compromising trust.”
CRM is no longer just a sales solution; it’s the central nervous system of modern business. With AI and automation built in, it empowers every department – from marketing to HR to support – to work smarter, faster, and more collaboratively.
Zoho also previewed Zia Hubs, a new solution within Zoho WorkDrive that allows companies to organise and analyse unstructured enterprise data securely. Mathew described it as part of Zoho’s long-term AI vision: “CRM is no longer just a sales solution; it’s the central nervous system of modern business. With AI and automation built in, it empowers every department – from marketing to HR to support – to work smarter, faster, and more collaboratively.”
Facing the prospect of greater commoditisation in the SaaS business, Zoho is doubling down on integration, trust, and context-aware intelligence to differentiate itself. “SaaS isn’t just a utility – it remains a driver of digital transformation when designed to connect people, processes, and intelligence across the business,” Mathew added.
