• by Vikram Gajjala

SAAS Growth Trends

The SAAS acronym describes "Software as a Service." This model has given rise to SAAS solutions that the IT industry, in particular, is increasingly integrating into its operations. Usually, the SAAS solutions are found in a remote cloud network. But the adoption of SAAS by global firms has been steadily increasing. Why is that? This is because of the increasing need to perform with more cost-efficiency and flexibility. In addition, the increase in remote work programs has made the use of SAAS more mandatory than optional.

The recent expansion of the SAAS industry can be attributed to various trends. Some trends have come and gone, while some have made a lasting impact making their presence felt for a long time. All SAAS business owners are therefore encouraged to capitalize on these trends. Let us highlight some of the most prominent trends affecting the SAAS industry and market!

1. More vertical-specific applications

For the longest time, SAAS companies have focused on providing core functions such as sales, accounting, etc., to their customers. Indeed, this technique has largely been successful, but as technology evolves, many clients increasingly need more specific software solutions. Firms have been responding to this by offering vertical-driven solutions that are specifically focused on their industry. Vertical SAAS is a model of software well designed to serve a specific niche. For example, the Brightwheel app was explicitly created for daycare centre workers.

2. Mobile-first SAAS will be used more

The SAAS industry heavily relied on a computer-first approach several years ago. Firms did not integrate SAAS technology into their mobile devices because they saw mobile phone devices as having limited capabilities. However, this has been changing steadily in recent times. It is partly because of the high sophistication that today's mobile phone devices have. Numerous firms and their clients have sought to capitalize on the benefits of incorporating SAAS into the functionalities of mobile devices.

3. SAAS will lean heavily in unbundling

SAAS has traditionally been delivered as a bundle. Clients had the privilege of selecting the services they used after paying for them. However, the clients have perceived this as waste for the longest time concerning the value they can derive from the deal. SAAS firms, therefore, saw the need to unbundle these services, disintegrating them into smaller, core functions. Here, they can offer their clients these core functions and other extras that the clients may want. Therefore, clients can get more value for their money while the firms use considerably fewer resources to deliver their services effectively.

4. Artificial Intelligence will get integrated into more software

Today, artificial intelligence is getting increasingly integrated into almost all types of software. For example, the RemoveBG SAAS company uses AI heavily to enhance the performance of its software. They rely on artificial intelligence to remove background from images. Elsewhere, Flowrite relies on AI to create the best copy for their messages for better communication. Today, software developers heavily rely on artificial intelligence to develop crucial features such as data alerts. Machine learning allows firms to analyze trends and patterns to detect anomalies before these problems reach them.

5. More firms will embrace a "low-code" approach

Many more software developers will create websites and apps that will not require coding software from scratch. Thus, there is a steady increase in low-code platforms at the moment. According to Research and Markets, the low-code industry will hit approximately $187 billion by 2030. Websites and apps that come with low-coding help save a lot of development time and more time can therefore be directed to the "core" needs of the firm.

Low-code platforms eliminate manual, "line by line" coding and allow the building of websites and applications through visual programming. It creates an opportunity for non-coders or those with little coding knowledge to enter the SAAS market. These platforms will help you make many vital features that you need to include in your software product.

6. There will be an increase in PaaS platforms

PaaS (Platform as a service) platforms have been steadily increasing recently. These platforms have eliminated the need for startups to build their server infrastructure. These PaaS platforms have also helped startups scale their operations and deploy add-ons more efficiently. Thus, they allow these startups to direct more time and resources to their primary role, i.e., creating software. Amazon's AWS is one of the most established PaaS platforms today. It has a variety of products that include Amazon Cloud Search (search engines), Amazon Sagemaker (machine learning), and Amazon Gameloft (video game hosting). Deliveroo, a meal delivery app, is an example of an app that attributes its growth and expansion to Amazon's AWS.

Final Take Away

This article presents you with some of the biggest trends in the SaaS industry. These trends will leave a lasting impact on firms all around the globe with the fast-developing technology. From the integration of artificial intelligence (AI) to increased mobile optimization, these SaaS growth trends will continue shaping the SaaS industry beyond 2022 into the coming era. Therefore, global firms intending to thrive long in the technology industry must embrace these trends in the long run.