Career
Menu

Accelerating Digital Transformation

AI & Software-as-a-Service

09/04/2021
AI

Summary

Software-as-a-Service (SaaS) – also known as cloud-based software – is a method of software delivery that allows data and applications to be accessed from any device with an internet connection and web browser.

Key takeaways
  • The surge of demand for SaaS has created structural changes that are expected to last well after COVID-19.
  • AI is a driving force behind digital transformation enabling companies to streamline and automate core business functions and gain back-office efficiencies
  • Team communication & collaboration, content management, and workflow automation are the key markets aligning to change the future landscape of work.

SaaS and Digital Transformation

Over the last four years, there has been a massive increase in the amount spent on cloud services - Infrastructure as a Service (IaaS), Software as a Service (SaaS), and Platform as a Service (PaaS). This increase is expected to continue with public cloud spending forecasted to reach nearly $500 billion by 2023, compared to $229 billion in 20192.

Impact of COVID-19

COVID-19 has forced companies to quickly roll out digital applications and scale- up the usage of existing ones. 89 percent of CIOs surveyed in March 2020 by Morgan Stanley said they were accelerating cloud adoption, up from 54 percent the month prior1. Customer service, financial analysis, and product development are experiencing the greatest increase in public cloud usage, to align with social distancing measures.

Customers are adopting cloud products at an accelerated rate attempting to benefit from Embedded innovations such as data analytics and machine learning. Real-time analytics is becoming a priority as companies try to adjust to new market trends and disruption. This surge of demand has created systemic structural changes that are expected to last well after COVID-191.

AI and SaaS

A push towards digital transformation and new pressures due to COVID-19 are reshaping the SaaS ecosystem. SaaS companies are embedding AI into their solutions enabling companies to streamline and automate core business operations and gain efficiencies in back-office functions.

Computational resources used in AI are expected to increase 5x from 2018 to 20233. SaaS companies leveraging AI extensively in their products can garner competitive advantages in the following 4 ways: 

Customization

One of the most important rationales for many companies to adopt AI is to improve their customer service. SaaS companies that are using AI effectively find it easier to tailor experiences to the needs and habits of individual users. AI can enhance the natural language abilities of SaaS software; this enables companies to adapt to user behavior without the need for extensive reworking by developers4.

Support

Support has always been considered a labor-intensive aspect of running software in the cloud. AI is being used to automate the support process by troubleshooting problems and answering any questions customers might have.

Analytics

With the rise of automation, digitization, and machine learning, companies are trying to use data to improve their competitive advantage. AI can help implement frictionless workflows and create enhanced digital insights - which are becoming important priorities, particularly in a post-COVID world.

Security

As major applications and services migrate to the cloud, security is becoming a growing concern. AI is proving to be the best and most ideally suited technology to address these growing concerns. Using AI and machine learning to automate threat detection, companies can respond to cyber threats more effectively and eliminate the need for human input.

Digital Communication

Team communication & collaboration, content management, and workflow automation are the key markets aligning to change the future landscape of work. COVID has become a catalyst in how work gets done digitally. Immediate solutions like video calling and electronic agreements saw rapid adoption during COVID and other SaaS companies are expected to benefit from the next phase of this digital transformation.

Digitization efforts are not expected to reverse once the world normalizes. As knowledge workers get used to utilizing video meetings and channel-based conversations, going back to regular instant messages becomes unfathomable.

AI will also assist in maintaining a competitive advantage in a crowded SaaS market. We believe investors will be rewarded for actively seeking out companies that are capturing the structural changes that are expected to last well after COVID-19.

 

1 “Technology Eating the World – Top Trends Post COVID-19,” Morgan Stanley Research, June 2020.
2 “Worldwide Semiannual Public Cloud Services Spending Guide,” International Data Services (IDC), 2019.
3 IT Automation Predictions for 2020, Gartner.
4 “Future of Work Virtual Conference Takeaways – Pace of Change is Accelerating,” Morgan Stanley Research, June 2020. 

> download

Want to view more?

Insights & Strategies

Achieving Sustainability - Introduction to COP27

Discover more

10/11/2022

Insights & Strategies

Readying for the reset

Discover more

10/10/2022

Asian High Yield

Insights & Strategies

Why Asian high-yield credit may soon turn from laggard to leader

Discover more

01/03/2021

china-a-opps

Insights & Strategies

“Year of the Ox” symbolises China’s strong future

Discover more

10/02/2021

China: the “sleeping giant” of the equity markets

16/04/2021
China: the “sleeping giant” of the equity markets

Summary

Despite the coronavirus pandemic and ensuing global slowdown, 2020 was a watershed year for China in many ways. William Russell, Global Head of Product Specialists Equity, explains how China is delivering on its long-term strategy and what opportunities this can provide for investors.

Key takeaways
  • China should no longer be considered an emerging market – rather, it’s on the way to becoming a global powerhouse
  • China aims to be the world’s high-tech standard-bearer, thanks to major investments in 5G infrastructure, digitisation, semiconductors and artificial intelligence
  • US-China trade tensions are likely to continue, which is one reason China is increasingly focusing on establishing its autonomy, strengthening supply chains and forging new alliances
  • China is underrepresented in many benchmark indices considering the size of its economy and markets, so investors focusing exclusively on benchmarks may be investing too little in China
Load More

Explore Other Focused Funds

Allianz Global Artificial Intelligence

 

Discover more

Allianz Global Intelligent Cities Income

 

Discover more

View Others

 

Discover more
   

For details, please contact us or our fund distributors to get more information.
   


Allianz Global Investors

You are leaving this website and being re-directed to the below website. This does not imply any approval or endorsement of the information by Allianz Global Investors Asia Pacific Limited contained in the redirected website nor does Allianz Global Investors Asia Pacific Limited accept any responsibility or liability in connection with this hyperlink and the information contained herein. Please keep in mind that the redirected website may contain funds and strategies not authorized for offering to the public in your jurisdiction. Besides, please also take note on the redirected website’s terms and conditions, privacy and security policies, or other legal information. By clicking “Continue”, you confirm you acknowledge the details mentioned above and would like to continue accessing the redirected website. Please click “Stay here” if you have any concerns.

Welcome to Allianz Global Investors

Select your language
  • 中文(繁體)
  • English
Select your role
  • Individual Investor
  • Intermediaries
  • Other Investors
  • Pension Investors

  • Allianz Global Investors Fund (“AGIF”)

    • Allianz Global Investors Fund (“AGIF”) as an umbrella fund under the UCITS regulations has within it different sub-funds investing in fixed income securities, equities, and derivative instruments, each with a different investment objective and/or risk profile.

    • All sub-funds (“Sub-Funds”) may invest in financial derivative instruments (“FDI”) which may expose to higher leverage, counterparty, liquidity, valuation, volatility, market and over the counter transaction risks. A Sub-Fund’s net derivative exposure may be up to 50% of its NAV. 

    • Some Sub-Funds as part of their investments may invest in any one or a combination of the instruments such as fixed income securities, emerging market securities, and/or mortgage-backed securities, asset-backed securities, property-backed securities (especially REITs) and/or structured products and/or FDI, exposing to various potential risks (including leverage, counterparty, liquidity, valuation, volatility, market, fluctuations in the value of and the rental income received in respect of the underlying property, and over the counter transaction risks). 

    • Some Sub-Funds may invest in single countries or industry sectors (in particular small/mid cap companies) which may reduce risk diversification. Some Sub-Funds are exposed to significant risks which include investment/general market, country and region, emerging market (such as Mainland China), creditworthiness/credit rating/downgrading, default, asset allocation, interest rate, volatility and liquidity, counterparty, sovereign debt, valuation, credit rating agency, company-specific, currency  (in particular RMB), RMB debt securities and Mainland China tax risks. 

    • Some Sub-Funds may invest in convertible bonds, high-yield, non-investment grade investments and unrated securities that may subject to higher risks (include volatility, loss of principal and interest, creditworthiness and downgrading, default, interest rate, general market and liquidity risks) and therefore may adversely impact the net asset value of the Sub-Funds. Convertibles will be exposed prepayment risk, equity movement and greater volatility than straight bond investments.

    • Some Sub-Funds may invest a significant portion of the assets in interest-bearing securities issued or guaranteed by a non-investment grade sovereign issuer (e.g. Philippines) and is subject to higher risks of liquidity, credit, concentration and default of the sovereign issuer as well as greater volatility and higher risk profile that may result in significant losses to the investors. 

    • Some Sub-Funds may invest in European countries. The economic and financial difficulties in Europe may get worse and adversely affect the Sub-Funds (such as increased volatility, liquidity and currency risks associated with investments in Europe).

    • Some Sub-Funds may invest in the China A-Shares market, China B-Shares market and/or debt securities directly  via the Stock Connect or the China Interbank Bond Market or Bond Connect and or other foreign access regimes and/or other permitted means and/or indirectly through all eligible instruments the qualified foreign institutional investor program regime and thus is subject to the associated risks (including quota limitations, change in rule and regulations, repatriation of the Fund’s monies, trade restrictions, clearing and settlement, China market volatility and uncertainty, China market volatility and uncertainty, potential clearing and/or settlement difficulties and, change in economic, social and political policy in the PRC and taxation Mainland China tax risks).  Investing in RMB share classes is also exposed to RMB currency risks and adverse impact on the share classes due to currency depreciation.

    • Some Sub-Funds may adopt the following strategies, Sustainable and Responsible Investment Strategy, SDG-Aligned Strategy, Sustainability Key Performance Indicator Strategy (Relative), Green Bond Strategy, Multi Asset Sustainable Strategy, Sustainability Key Performance Indicator Strategy (Absolute Threshold), Environment, Social and Governance (“ESG”) Score Strategy, and Sustainability Key Performance Indicator Strategy (Absolute). The Sub-Funds may be exposed to sustainable investment risks relating to the strategies (such as foregoing opportunities to buy certain securities when it might otherwise be advantageous to do so, selling securities when it might be disadvantageous to do so, and/or relying on information and data from third party ESG research data providers and internal analyses which may be subjective, incomplete, inaccurate or unavailable and/or reducing risk diversifications compared to broadly based funds) which may result in the Sub-Fund being more volatile and have adverse impact on the performance of the Sub-Fund and consequently adversely affect an investor’s investment in the Sub-Fund. Also, some Sub-Funds may be particularly focusing on the GHG efficiency of the investee companies rather than their financial performance which may have an adverse impact on the Fund’s performance.

    • Some Sub-Funds may invest in share class with fixed distribution percentage (Class AMf). Investors should note that fixed distribution percentage is not guaranteed. The share class is not an alternative to fixed interest paying investment. The percentage of distributions paid by these share classes is unrelated to expected or past income or returns of these share classes or the Sub-Funds. Distribution will continue even the Sub-Fund has negative returns and may adversely impact the net asset value of the Sub-Fund.  Positive distribution yield does not imply positive return.

    • Investment involves risks that could result in loss of part or entire amount of investors’ investment.

    • In making investment decisions, investors should not rely solely on this [website/material].

    Note: Dividend payments may, at the sole discretion of the Investment Manager, be made out of the Sub-Fund’s capital or effectively out of the Sub-Fund’s capital which represents a return or withdrawal of part of the amount investors originally invested and/or capital gains attributable to the original investment. This may result in an immediate decrease in the NAV per share and the capital of the Sub-Fund available for investment in the future and capital growth may be reduced, in particular for hedged share classes for which the distribution amount and NAV of any hedged share classes (HSC) may be adversely affected by differences in the interests rates of the reference currency of the HSC and the base currency of the respective Sub-Fund. Dividend payments are applicable for Class A/AM/AMg/AMi/AMgi/AQ Dis (Annually/Monthly/Quarterly distribution) and for reference only but not guaranteed.  Positive distribution yield does not imply positive return. For details, please refer to the Sub-Fund’s distribution policy disclosed in the offering documents.


    Allianz Global Investors Asia Fund

    • Allianz Global Investors Asia Fund (the “Trust”) is an umbrella unit trust constituted under the laws of Hong Kong pursuant to the Trust Deed. Allianz Thematic Income and Allianz Selection Income and Growth and Allianz Yield Plus Fund are the sub-funds of the Trust (each a “Sub-Fund”) investing in fixed income securities, equities and derivative instrument, each with a different investment objective and/or risk profile.

    • Some Sub-Funds are exposed to significant risks which include investment/general market, company-specific, emerging market, creditworthiness/credit rating/downgrading, default, volatility and liquidity, valuation, sovereign debt, thematic concentration, thematic-based investment strategy, counterparty, interest rate changes, country and region, asset allocation risks and currency (such as exchange controls, in particular RMB), and the adverse impact on RMB share classes due to currency depreciation.  

    • Some Sub-Funds may invest in other underlying collective schemes and exchange traded funds. Investing in exchange traded funds may expose to additional risks such as passive investment, tracking error, underlying index, trading and termination. While investing in other underlying collective schemes (“CIS”) may subject to the risks associated to such CIS. 

    • Some Sub-Funds may invest in high-yield (non-investment grade and unrated) investments and/or convertible bonds which may subject to higher risks, such as volatility, creditworthiness, default, interest rate changes, general market and liquidity risks and therefore may  adversely impact the net asset value of the Fund. Convertibles may also expose to risks such as prepayment, equity movement, and greater volatility than straight bond investments.

    • All Sub-Funds may invest in financial derivative instruments (“FDI”) which may expose to higher leverage, counterparty, liquidity, valuation, volatility, market and over the counter transaction risks.  The use of derivatives may result in losses to the Sub-Funds which are greater than the amount originally invested. A Sub-Fund’s net derivative exposure may be up to 50% of its NAV.

    • These investments may involve risks that could result in loss of part or entire amount of investors’ investment.

    • In making investment decisions, investors should not rely solely on this website.

    Note: Dividend payments may, at the sole discretion of the Investment Manager, be made out of the Sub-Fund’s income and/or capital which in the latter case represents a return or withdrawal of part of the amount investors originally invested and/or capital gains attributable to the original investment. This may result in an immediate decrease in the NAV per distribution unit and the capital of the Sub-Fund available for investment in the future and capital growth may be reduced, in particular for hedged share classes for which the distribution amount and NAV of any hedged share classes (HSC) may be adversely affected by differences in the interests rates of the reference currency of the HSC and the base currency of the Sub-Fund. Dividend payments are applicable for Class A/AM/AMg/AMi/AMgi Dis (Annually/Monthly distribution) and for reference only but not guaranteed.  Positive distribution yield does not imply positive return. For details, please refer to the Sub-Fund’s distribution policy disclosed in the offering documents.

     

Please indicate you have read and understood the Important Notice.