Over the past few years, the SaaS industry has gained significant momentum. Various trends point towards increased utilization of the given software model substantially.
There is no slowdown in the growth of the SaaS industry. Furthermore, it has been estimated that the market size of the SaaS-based sector is expected to reach $157 billion in 2020.
It is a growing and competitive market that is growing at a rapid pace. So it is becoming quite challenging in keeping up with trends. While many of these trends have come and gone, some have continued to show their presence comprehensively.
Even though various businesses are continuing to invest heavily in SaaS software, there is a requirement to keep an eye on the future. It is possible by keeping an eye on trends that will help you to bring high prospects for your business.
There are some latest trends which you should remember so to bring accolade for your business. These are as follows:
I. Incorporation of AI to get Access to more Practical Application
Topping the list of SaaS trends is the increasing usage of Artificial Intelligence (AI). Don’t consider it in the nascent phase as the given technology has taken the entire business world by storm.
With the entry of AI in the SaaS, a revolution was waiting to happen and promised to change everything from accounting to CRM. AI has the potential to optimize the business process by:
- Improving Efficiency & Productivity
- Automating Redundant Task
- Augmenting Human Capabilities
Unfortunately, some people still consider it in a nascent phase, and due to this, only a small portion of AI has been utilized. The primary reason is due to the potential risk associated with it, but thanks to SaaS companies, the barrier has finally been going to break.
The best part of the given technology is that it is an innovative technology that is creating a well-defined path for fulfilling the SaaS company’s needs. By the application of AI with SaaS, the businesses can bring improvement in:
- Speed & Security
Furthermore, the utilization of AI-powered Chatbots has permitted the companies to level customer service responsiveness with high effectiveness.
II. The emergence of Vertical-Specific SaaS
Few people know that SaaS is of two types horizontal and vertical. Horizontal SaaS are generic and more dominant, whereas vertical SaaS suits for specific business needs and has recently emerged as path-breaking phenomena.
In recent times, vertical-specific SaaS companies have come to represent a larger share in the overall SaaS market. They tend to experience faster growth as compared to their horizontal counterparts.
Various industries are eying for vertical SaaS solutions and include retail analytic software, logistic analytic, and healthcare software. There are multiple benefits associated with the given delivery model, and it includes:
- Customer Intelligence
- Business Value
- Improved Data Governance
In addition to this, they also indulge in:
- Enhanced Flexibility
- More Upselling Opportunities
- Lower Client Acquisition Costs
III. Migration to PaaS is emerging as New Trend
Both SaaS and PaaS are renowned cloud computing software. But why migrating to PaaS is a crucial solution?
Before explaining this, you should go through one thing that there is a massive trend of innovation in the given industry. Due to the given factor, every SaaS company is trying to offer new things but is halted by the changing demand of the clients.
As a result, it has become a challenging task to retain the existing customers and has forced SaaS companies to rethink their strategy. To overcome the fear of losing customers, SaaS vendors are moving towards platform-as-a-service (PaaS).
What is the importance of PaaS? It empowers the clients (or businesses) to develop custom applications to integrate their unique services. Furthermore, there are various factors which made PaaS an emerging trend:
- High Flexibility & Accessibility
- Robust Delivery Model
- High Security with Regular Automatic Upgrades
IV. Rise & Rise of Micro-SaaS
The biggest problem associated with the SaaS platform is that the top 10 companies dominate the given industry. So for an emerging vendor to create their space, they have to bring innovativeness in their working.
So, there has been the creation of micro-solutions that augment the functions of niche offerings in the form of micro-SaaS? So precisely what is it?
It is a small tool designed by a group of people to improve the existing functioning of any given SaaS product. It includes various devices such as add-ons, extensions, and other accessories.
There are various micro-SaaS tools which are creating a boom in the industry and are as follows:
- Boomerang for Gmail
- Yoast SEO plugin
These projects often require small costs and can accomplish without outside funding. Furthermore, there are various benefits associated with a given trend, such as:
- High-Profit Margin
- Location Independent
- Low Overheads
V. Smartphones are New Powerhouse of SaaS Model
Smartphones have become part and parcel of the life of the people. It has been estimated that 72.6% of the people will be using smartphones by 2022.
Another study has found that the average person across the world is spending over 120 hours/month staring at their smartphones.
From the above facts, one thing could be said that mobile technology has created a buzz in this industry and is not going to leave any soon.
What’s more, business owners are getting involved in running a business from their smartphones. Besides, many employees now want to prefer having mobility while doing their jobs.
Therefore, SaaS companies are creating and bringing significant improvement in mobile apps for their tools and services. Also, there has been an urge to keep up with the pace and direction to move towards mobile technology, which will continue in the future.
From the above-given study, one thing is sure that SaaS has gained significant momentum in the coming decades. It is the future of the software world.
If you want to create a niche in the field of software and earn a good profit, then opt for a leading SaaS application development company and build an excellent reputation for your product.