August 10, 2020 By: Rupesh Kumar
A version of this Blog was first published on the Digital First Magazine
‘Software as a Service’ or SaaS is nowadays one of the most thriving business solutions. It is increasingly becoming a trusted choice for businesses that are looking for accessibility, versatility and data security that comes with software solutions and data analysis tools, without the heavy reliance on installation and running of applications that need to be done on computer systems and data centers personally.
The overarching impact that SaaS now has on the cloud computing market, can be easily estimated by the fact that Gartner predicts that the service-based cloud application industry, by the year 2022 is going to be worth $143.7 billion. Owing to the agility and cost-effectiveness that the software distribution model can provide for businesses, it has increasingly become a reliable option across industries.
Hence, we are going to explore 10 trends in SaaS Technology in 2020 that are going to shape the sector in the near future:
- Security Enhancement via AI Algorithms: The fight against cyberattacks has been ongoing since the advent of the internet. AI technologies now jumping on the bandwagon, can help in the detection as well as the projection of common patterns of threats. By the implementation of AI technology, it is now possible for businesses to identify malware and ransom attacks much before they enter a software system. Apart from this, another advantage that the technology presents for the strengthening of data security for SaaS is automation – which can help in enhancing the speed of threat detection.
- Remote Work: With the onslaught of the COVID-19 pandemic across the globe, work from home has become the new normal. Owing to this, there are now a lot of SaaS tools that can assist in remote work, be it organizing a webinar, a conference to ensure that everything is on track, to critical information sharing, for example, sharing communication plans across partners and internal employees. Since SaaS solutions are innately able to be deployed and implemented remotely, they have been placed in a unique position to be able to help your businesses in adjusting to this new shift to maximum remote work.
- White Labelling: Products or services that are produced by one company and then purchased by another one to sell under their brand, are known as white labels. When it comes to SaaS, white labeling would imply that the client can buy your highly customizable products, and then can adjust it according to their business needs be it anything ranging from a URL, website domain, to email, etc. White labeling in SaaS helps businesses in enhancing their branding about the added extra costs of infrastructure or development.
- Low-code Platforms: Low-code platform market, is going to continue its evolution into the future so much, that by the year 2022, its total market is projected to be about $21.2 billion, growing at a compound annual growth rate of 40 percent, according to Forrester. Local platforms are important as they are beneficial for developers in creating a drag-and-drop interface is and allowing perfect integration. Amongst the numerous benefits that are offered by these platforms, higher productivity and faster iteration are just naming a few.
- Vertical SaaS: Focusing on the specific needs of a particular industry as opposed to an encompassing one, a vertical SaaS model can help you in attracting more clients and grow your profits. Realizing the importance of being able to position their business as an industry leader, more and more entrepreneurs today are shifting to a vertical SaaS model that is much more industry-oriented when you compare it to a horizontal one. Established partners like Salesforce, SAP, Oracle, etc. which started as horizontal SaaS models, have also now changed their marketing approach and are looking into implementing the vertical SaaS model.
- Micro SaaS: Generally recognized as a small section that is developed by a person or group to improve the existing functionalities of SaaS products, which would mean things like an add-on, extensions, etc. Micro SaaS can help businesses outpacing key competitors and be able to come out with a unique niche for themselves in the market. Apart from this, another benefit of Micro SaaS products is that they eliminate the need for additional overhead from outside investment companies.
- Growing Need for API Connections: Every business seeks to cater well-integrated solutions to its services without having to create a novel IT ecosystem. This is the reason why SaaS products need to have more APIs in order to ensure that data can be seamlessly integrated but whatever existing IT infrastructure is present instead of having to migrate to another cloud computing environment. APIs hence, have a titanic impact on SaaS development, as they can ensure high extensibility as well as seamless integration.
- Product-led Growth: Product-led growth, is a common market approach that relies heavily on a product to be able to acquire, retain as well as engage clients. Now talking about how SaaS companies apply this approach – this is by focusing on the consumer-like virality components for the features of their products and also making sure that they have sign-up options that are hassle-free and do not require a credit card for setting up accounts. If you are wondering whether this method is going to be popular in the SaaS market, then the answer is yes! Some companies are applying this trend and have increased their business evaluation based on it, hence this movement is soon going to gather much steam.
- PaaS: Owing to the cutthroat competition that exists in the market today, businesses are continuously on the lookout for new and innovative ways to improve their products. PaaS or Platform-as-a-Service, appeals to companies, to this end, since it can help in product development in customer retention. Owing to the various benefits that PaaS has to offer, that include characteristics such as being a highly scalable, agile and quick alternative for SaaS, when it comes to businesses, the service makes it extremely easy for businesses to build custom applications as well as add-ons for the core software that makes them maintain their flexibility.
- Mobile-First Approach: According to reports, globally, more than 5.19 billion people now use mobile phones, with user numbers up by 124 million (2.4 percent) over the past year, and the number of people around the world using the internet has grown to 4.54 billion, an increase of 7 percent (298 million new users) compared to January 2019 (Source: DataReportal).
As the proliferation of mobile users continues to increase, SaaS companies are now compelled to adopt the services for mobile devices. Companies such as Dropbox, Skype, etc. were some of the first ones to implement the mobile-first approach for the business models, and now other businesses are trying to follow suit.
As we have already entered an accelerated pace of digital transformation, and companies are transiting towards a world that is digitally dependent, SaaS can be a convenient and affordable option to opt for the same. Now that we are aware of the top 10 trends in SaaS, we should seek to employ them to help in boosting the business and also making it more efficient and agile. Therefore, leveraging these trends enables us to outpace our competitors, boost your client acquisition, and also enhance revenue generation.
