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There’s a reason why Software-As-A-Service has become such a popular business model in the world of IT – because it works. As we look to round out the unprecedented year and unique set of circumstances that 2020 brought with it, we have our eyes set on what’s in store for 2021. In terms of SaaS solutions, we believe that there are some exciting trends on the horizon. The industry is effectively booming, and with everything from software to security, and from Cloud services to governance, you can rest assured knowing that there are some exciting SaaS trends coming in the new year.
In this article, we’re going to take a deep dive into the SaaS trends that we think you should keep an eye out for as we move into 2021. These trends are certainly the talk of the industry right now, and it’ll certainly be worth it to keep your eye on them today, tomorrow, and well into next year – especially if you plan on breaking out into the SaaS industry in the near future.
But before we get into these trends, it’s important that we ask a single question: what is a SaaS solution? Well, SaaS solutions are typically found in the form of a web or mobile apps, APIs, data storage services, or Cloud hosting services. In fact, here at Starnavi, we work hand in hand with our clients to develop all of the components necessary to build all of the successful SaaS solutions mentioned above.
The fact of the matter is that the SaaS industry is experiencing exponential growth right now. In 2018 alone, more than $72.2 billion were generated by SaaS companies, and that number has increased since. And in 2020, the market reached $100 billion in revenue, and we foresee that number growing well into 2021.
As we continue to try and project what the SaaS market will bring in 2021, we’re paying close attention to 8 trends in particular that we believe will set the stage for another tremendous year in the SaaS industry. According to itechart.com, “to succeed in the SaaS space, companies should offer a streamlined as-a-service delivery experience, fresh functionality, and at least some hint of growth, which is especially important during this period of uncertainty.”
With that in mind, all of the 8 trends that we’ll go on to list in this article should address all of the above. So, now that we’re clear on just how exciting the prospect of a bigger and better year for the SaaS industry is, let’s take a look at some of these trends.
White Label SaaS Solutions
White labeling is quickly making its way into the world of SaaS solutions – and for good reason. Essentially, it provides small businesses with the software products they need without having to go through the trouble of dealing with multiple software providers at any given time. For new SaaS businesses looking to get some skin in the game, white-label solutions help them get started quickly, ultimately equipping them with a ready-to-sell product that they can offer right out of the gate.
White-label SaaS solutions will certainly make the entire process quicker and it also helps SaaS companies deliver more seamless services for their clients because it eliminates the need for businesses to create their own dedicate software.
No one should or can understate the impact that artificial intelligence technology has had on virtually every industry currently operating in the global marketplace. As such an integral technology, it was inevitable that AI would eventually make its way into the SaaS market. Much of it deals with analyzing the data that many SaaS solutions take in on any given day – whether it be from users, customers, subscribers, etc. AI is also a wonderful technology to use when it comes to customer service, product pricing, and even talent acquisition since almost every job applicant has some sort of online profile these days.
Vertical SaaS Is Becoming More Opportunistic
It’s clear – at least in the SaaS market – that building a SaaS solution in regard to one particular vertical is the right way to make a quick buck – and to keep the money flowing long-term. The fact of the matter is that by targeting one vertical, you’re able to get even more advanced with the SaaS solutions that you offer within that space.
There are plenty of new markets that are left to be explored when it comes to vertical SaaS – for instance, logistics and transportation, along with construction, and even local government are still relying on legacy technology. In 2021, we believe that there will be a massive shift toward SaaS.
MicroSaaS Will Make Itself Known
At this time, MicroSaaS is still a rather novel concept in the market. This is especially so when considering the fact that the largest current SaaS niche markets are dominated by just about 9 major players. In 2021, we believe that emerging vendors will begin to make up some ground when compared to these major companies by leveraging the power of MicroSaaS. Essentially, this is a tool that these emerging vendors can use to improve the fundamental functioning of SaaS products that already exist.
These vendors will create things like third-party add-ons, extensions, and even accessories that can be used in conjunction with existing SaaS software solutions. While it might not seem like the biggest development, it’s an interesting trend that is certainly worth keeping an eye on as we move into 2021.
The Mobile-First Mentality
As with nearly every industry out there, the mobile-first mentality is still very much in play. Remember, CNBC recently pointed to a staggering statistic that claims that by 2022, more than 70% of people will use their smartphones to connect to the internet. This statistic has not been lost on SaaS companies around the world.
With that said, many SaaS vendors are seeing the shift toward mobile technology, and they’re planning for it. Many SaaS solutions come with dedicated smartphone applications that include robust and responsive features to ensure a seamless transition from a hard-wired device to a mobile device.
PaaS Is Around The Corner
It’s important to remember that the cousin of SaaS, PaaS, is only just around the corner. Platform-as-a-Service is quickly becoming the focus of SaaS firms because they give clients the ability to add their own custom applications through the use of a unique platform. For instance, Salesforce would be a great example of businesses that are looking to capitalize on PaaS. Essentially, PaaS solutions give clients the ability to scale their businesses quite simply, without having to worry about new software solutions – and in a world where growth is everything in business, scaling with ease is certainly an attractive option for businesses.
Affordability & Pricing
Because SaaS is becoming quite popular in the market, SaaS vendors are rethinking the ways in which they go about pricing their software and subscription models. Most notably, they have affordability on their mind. They’re looking to make their pricing structures much more flexible for businesses because they understand that not every business requires every service that they offer.
With that said, SaaS vendors are also realizing that the market is growing more and more competitive by the day, and in 2021, the market is expected to grow larger than it’s ever been. Any option to help separate their solutions from the competition will certainly be considered – and pricing is always a go-to choice.
Unbundling SaaS Apps
In line with our discussion around the trends in affordability and pricing, one of the ways in which SaaS vendors are able to offer more flexible pricing revolves around unbundling their applications. For example, many SaaS companies choose to bundle their software together for a fixed price. However, not every business will require every single piece of software that comes with that bundle. Instead, businesses are looking for customized SaaS solutions that are uniquely tailored to suit their needs. For this very reason, unbundling has become a popular tactic used by SaaS vendors to provide a more personalized solution for their clients.
Let’s See What 2021 Has In-Store
We believe the biggest challenges with SaaS moving forward will revolve around security, governance and compliance, and the lack of Cloud experience that a lot of businesses have, even well into 2020. With that said, it’ll be interesting to see how these 8 trends play out in 2021. If you’re looking for SaaS services and if you’d like to work with an experienced team of SaaS professionals, it’s time for you to contact Starnavi. Click here to get started.
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