For more than a decade, Software as a Service (SaaS), providers, in the beginning, did not come with a complete integration solution. Today, SaaS provides more exceptional integration capabilities like simplicity and user accessibility, security, and widespread connectivity. The technology also brings agility and cost-effectiveness to businesses who have adopted the solution.
SaaS has become a must-have solution for modern businesses. Global Software as a Service Market Report expects SaaS to grow to $220.21 billion at a CAGR of 13.1% through 2022. Betterbuys report reveals that the specific expenditure in the U.S. SaaS Industry is forecasted to reach $55 billion by 2026. Currently, 64% of SMBs depend on cloud-based SaaS, and 88% of companies are considering investing in new SaaS applications within 2-3 years.
The Explosion of SaaS Trends in 2020
2019 was a breakthrough year for the economically profitable cloud technology, Software as a Service. It was an explosion of adoption driven by trends like product-driven growth, machine learning, and the hybrid delivery model. As SaaS continues to evolve thanks to innovation increases, 2020 has presented five prominent trends that are currently shaping the future of SaaS:
Artificial Intelligence (AI)
Positioned to disrupt the SaaS landscape, AI-based SaaS provides fashion businesses with the ability to augment their internal processes with fast automation while improving personalization and responsiveness throughout their processes. AI also allows companies to address customer service operations efficiently.
“Micro SaaS” is a term that was was coined over a decade ago. Tyler Tringas, the founder of company Storemapper, defines micro-SaaS as a
business that provides a very basic service to solve an apparent problem. “A SaaS business targeting a niche market, run by one person or a small team, with small costs, a narrow focus, a small but dedicated user base, and no outside funding. Hence, micro-SaaS,” explained Tringas.
Helping businesses that require a specific feature or need to enhance a current SaaS product, Micro SaaS is a trend that is attracting those looking to have add-ons to existing platforms or developments.
It’s projected that by 2022 around 72.6% of the world’s population will use their mobile devices to browse the internet; therefore, it should come as no surprise that the Mobile-First Mindset is a trend forming the future of SaaS.
In the mobile-driven age, we are living in, SaaS vendors understand the importance of having a mobile-first mentality. Many experts now believe that Mobile-first is one of the most integral SaaS industry trends for 2020 that is being driven by a growing demand for dynamic mobile dashboards.
Considered to be a disruptive SaaS trend, Platform Unbundling is a trend that has been dominating the SaaS landscape in 2020. Clement Vouillon, the founder of MemoHub, defines the trend as: “By “Unbundling of SaaS” I’m referring to a new breed of startups which don’t offer traditional “full-featured” SaaS products to their users but rather package their core service as an API and a suite of small tools.”
Invented to provide software-based solutions packaged in the form of an API rather than a typical ‘full-featured’ platform, Platform Unbundling is perfect for customers who demand a more customized experience.
Vertical SaaS is a trend that is customizable, which means that users can refine the customization of certain features. The earliest SaaS products began as “horizontal,” and served as a single function for a variety of industries; now Vertical SaaS is the more new-age alternative to traditional SaaS products.
The cost-effective trend focuses on serving the distinct needs of a single industry. It also provides the following benefits: customer intelligence, improved data governance, and pre-defined metrics and KPIs.