The Software-as-a-Service (SaaS) industry has grown in size from 2015 to 2019. The competitors for a SaaS firm have increased by 3.7 times since just 7 years ago.
SaaS helps firms which are digitally based to connect to and use cloud-based applications and services over the Internet. Most general applications are email, calendars, office tools like MS office. Many SaaS firms build such applications for their client firms according to their need in a customized manner. All these applications are developed on a pay-as-you-go basis from a cloud service provider.
A SaaS provider is responsible for securing a platform, network, operating system, applications and physical infrastructure. Most SaaS providers in the current market are not responsible for securing customer data or user access to it.
Ranging from Artificial Intelligence to enhanced mobile application optimization, SaaS has evolved in just a span of four years. Let us have a detailed look at these trends and what lies for the future of SaaS services.
A list of new SaaS trends in 2022:
Artificial Intelligence (AI) is the disruptive technology that is changing the paradigm of many services based on the internet and software. The benefit that AI brings to SaaS is hyper-customization or personalization according to the needs of the client company or customer. This helps customize software for B2B, B2C, DTC, and eB2B markets as well.
Machine Learning (ML) and AI are often used interchangeably. But this is incorrect as both are integrated but not the same. Machine learning is a subset of Artificial Intelligence(AI) that focuses on learning codes and training machines to process data to develop applications for different enterprises.
Machine Learning use cases in SaaS are plenty in number, and some of them are:
Salesforce is the perfect example of a SaaS firm that leverages the power of Machine Learning with one of the best CRMs in the world.
Unlike horizontal SaaS, Vertical SaaS provides solutions to a narrower audience generally within a single niche. It helps provide solutions to the exact problems of a specific industry and a particular domain.
It is more complicated than Horizontal SaaS but provides extensive customization to satisfy the exact requirements of a particular customer. It can quickly adapt to trends which enables client firms to not lose their audience and acquire new customers as well.
Vertical SaaS relies on marketing strategies to reach a small audience and has a high chance of conversions.
SaaS in the beginning of its evolution had no integrations. No product could be merged with another. Customers were required to avail third-party solutions in order to do so, which wasn’t appealing for both users and institutions.
Integrations were the ultimate solution, where SaaS was empowered with Google Suite applications, MS office applications and many other websites like Shopify, GoDaddy etc.
This helped cater to customers who were not ready to migrate their data to an entirely new platform thus making customers more loyal and their data more secure.
Bigger, bulkier codes are a thing of the past for many SaaS companies with the cut-throat competition in the tech industry. Smaller, more flexible products, run by very small teams or sometimes even a single person are the current trend in the market which is acquiring more consumers. These products are generally referred to as Micro SaaS products – basically extensions and add-ons to larger products catering to particular industries. These products are less expensive to run and also require less manpower. There is a vast scope for the growth of these Micro-SaaS products.
As most people are adapting to the mobile for their daily work routines and personal life as well, SaaS products are also heading in the same direction. But there are multiple challenges that come along the way of developing SaaS that is mobile friendly. Creating application programming interface and user interface that are accommodative to different generations and age groups. Improved accessibility features, mobile personalization, AR and VR based experiences and ML based filtering capabilities are the fields that are projected to grow at a rapid rate in the SaaS industry.
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