Software-as-a-service (SaaS) is taking the technology industry by storm. As new startups emerge, the need for better software and newer technologies also rises. Companies today are no longer relying on software that needs to be maintained and installed separately. This is the reason why SaaS products are thriving.
SaaS eliminates the need for locally installed and managed software. Thus, creating a cloud environment where the software is hosted and can be used with a subscription.
SaaS has revolutionized the work of development companies as it has dramatically decreased costs. Plus, there is less time spent on maintenance and other such activities while using SaaS solutions.
As people adapt to working remotely, there is an increase in the demand for SaaS products. Moreover, setting up and installing software on remote systems can be tiring work for the IT team of any company.
Experts predict that this is just the start of SaaS products, and a lot more will happen in the industry as SaaS expands its horizons. While working in an industry that changes rapidly, it is important to be informed about the latest trends in the SaaS world. Here are 10 of them.
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Since its beginning, the SaaS world has been dominated by a few advanced tech companies. As they continue to expand rapidly, a new trend has been spotted. This trend is called Micro-SaaS.
Micro-SaaS is a term coined for small SaaS offerings that focus on just one service. These are SaaS companies with just one offering, whether it be software, an extension, or anything. These Micro-SaaS products will see the most growth as businesses shift to working in complicated scenarios.
ChimpCharge is one example of a micro-SaaS that can be used to create payment invoices easily.
Micro-SaaS is expected to multiply as it can be any small software offering that enhances the functioning of a more significant task. Here are some benefits of Micro-SaaS that support the trend.
- Micro-SaaS is a smaller software, hence easier to manage.
- Low costs in building and maintaining drives up margins.
- Increased demand for smaller plugins that do the work instead of large software.
#2. Artificial Intelligence
Artificial intelligence (AI) is one of the most exciting technologies for the 21st century. Experts suggest that it is perhaps one of the best inventions made in the computer science domain so far. AI holds the power to help businesses succeed.
As more businesses turn towards informed and researched decision-making, the demand for AI-enriched SaaS products increases. It is estimated that the growth rate for AI software will be around 33% and on an average businesses will use 35 AI tools at any given time.
SaaS companies themselves will incorporate AI features in their products to increase success rates. There are some great benefits of using AI, and these benefits will drive the growth of AI-based SaaS apps. Let’s have a look at some of them.
- AI can be used to personalize user experience, even on large-scale applications.
- AI can help automate daily tasks.
- AI will help companies cut costs, which will lead to widespread adoption of AI-based SaaS applications.
AI can help businesses create an incredible customer experience and also serve their customers better. As businesses want to be available to their customers round the clock, the usage of SaaS-based AI chatbots has seen tremendous growth in recent years. For example, Drift is one AI-chatbot SaaS offering that helps automate customer relation processes.
#3. Vertical SaaS
Image Source: Forbes
Vertical SaaS refers to the creation of services and SaaS products targeted to a specific industry. The time has gone where a generalized SaaS product could accommodate the needs of multiple industries and domains.
Today in the ever-evolving world, industries and businesses change rapidly, making it essential to have a unique solution for every industry. The horizons of every domain are expanding rapidly, and everyone is solving newer challenges.
This demands industry-specific software that is made to solve every problem in a specific domain. Here are some benefits of using vertical SaaS that will surely boost the trend.
- Help in solving specific problems of the industry vertical.
- Better support and functions for industry processes.
Vertical SaaS products will solve problems on a scale never imagined before. Hence, SaaS startups are working towards developing vertical SaaS products for specific industries.
#4. Mobile-first Development
On an estimate, there will be around 7516 million smartphone subscriptions by the end of 2026. This increasing usage of smartphones has made SaaS companies shift their focus towards mobile phones.
Earlier, SaaS products and applications were only accessible through laptops or desktops. This hindered critical business processes when employees were away.
This made SaaS vendors think about creating mobile-first products. More and more vendors are creating applications that are easily accessible through mobile phones – making it easier to work even when away from laptops.
Modern smartphones are equally powerful as computers. Hence, leveraging them for functional business processes is a no-brainer. SaaS vendors are providing smartphone applications that help users continue working on their mobile phones hassle-free.
#5. White-label SaaS
Today, large organizations are moving towards SaaS products to eliminate upfront costs. White labeling SaaS products means adding personal branding to SaaS products or services. This will mark an increase in demand for personalized SaaS products.
Personalization is a part of white labeling SaaS products. Also, it is observed that 77% of users and companies like to proceed with providers that help them to customize their SaaS products. This clearly shows why white-labeling SaaS products might be the next trend.
Now, let’s look at some more benefits that show why white-label SaaS might continue to trend.
- Risk-free, as the customer doesn’t have to build and maintain software on their own.
- Cost-effective, as most SaaS products are subscription based.
- Better software can be acquired instead of spending time on building one.
White-label SaaS products also include personalizing products according to the customer’s needs.
#6. API connectivity
Image Source: Progress
SaaS software that provides APIs for easier working and integration with existing software will rise. Businesses do not want to disturb their systems to add one new tool. Hence they are looking for SaaS software that is easier to integrate with an existing system.
APIs are essential when connecting with previously running software. It is better to add one software with API connectivity rather than changing the whole system. Changing the whole system environment is costly, and it can also lead to increased errors and problems if the new software is tricky.
#7. Data Security and Management
Keeping your data secure is quite important because 36 billion data records were stolen and compromised in 2021 alone. Shifting from traditional software to SaaS models introduces a new hurdle.
Data security and management is one of the biggest hurdles for any organization. If data is not secured correctly, there are chances that vital business information may leak, and companies may suffer losses.
Users of online SaaS tools are more aware of data privacy and security rules. Hence SaaS providers need to look into this closely. There will be a high demand for SaaS tools that have better data security and management guidelines. Also, SaaS providers will need to comply with GDPR policies and enforce stricter policies on their own to shine in this space.
#8. No Code Tools
Usage of SaaS tools is not limited to just the technology industry, but it is rapidly expanding. As more non-tech people work with SaaS tools, it is essential to develop tools that everyone can use.
Companies have reported that 40% of their users are not from a technological background, hence developing software that everyone can work with is the need of the hour for SaaS providers.
That’s why no-code tools have started to roll out. These tools help customers complete tasks even without knowing how to code. Such SaaS tools have great UI/UX that help complete tasks with just a few clicks.
No-code tools are often faster to work with and less prone to errors. No code tools also help SaaS companies reach out to broader audiences, which increases sales and revenue for the business.
By the end of 2022, PaaS spendings will skyrocket up to 71 billion USD. This proves to be a big opportunity. In recent years, SaaS businesses have evolved into more giant corporations. This has provided them with abundant customers and wealth to tap into new markets. PaaS is another such market that is on the rise.
As SaaS businesses have a good customer base, they will likely try penetrating the Platform as a Service (PaaS) business model. In this model, the service provider provides businesses with the required computing platform as a service. Charging for only the resources used.
#10. Machine Learning
Machine learning is thought to be one of the most advanced technologies that businesses can use to succeed. Machine learning is a part of AI, which works towards predicting and classifying outcomes from specific data.
It can help businesses succeed by predicting the outcome of every decision beforehand. This will help businesses make more informed decisions in light of growth. Also, knowing outcomes beforehand can help businesses tweak their decisions to meet their goals.
SaaS applications infused with machine learning capabilities will continue to rise. The demand for such applications is already pretty high due to increased competition in business.
Businesses will spend freely to infuse machine learning into their processes, and this will take the machine learning market value to $117 billion. No company wants to lose out on opportunities that can help them grow.
As businesses change rapidly, their demands change too. The only viable solution is to adapt to SaaS software.
The above SaaS trends will continue to disrupt the industry. Trends last for two to five years and then change completely. Because SaaS software is pretty flexible and is capable of changing as per needs, it can withstand this challenging terrain.
Guest author: Harsh is an entrepreneur & Director at AgencyMat @IoT App Development Company. He has 12+ years of experience in the Information and technology industry. He helping business owners to grow their businesses with our digital solution.