top 10Trends in the SaaS Industry for 2022 : One of the IT market’s fastest-growing subsectors is SaaS software. So let’s look at the future of software as a service in 2022. The SaaS, PaaS, and IaaS markets are expected to grow significantly over the next few years, according to Gartner and BMC.
The SaaS market will grow by 12% annually.
According to analysts, the SaaS market will expand at a 12% annual rate. The amount of investments will total $ 141 billion by 2022, making it the most expensive “… as a service” offering.
Software as a Service, or SaaS, is one of the program distribution methods that denotes that the seller is supporting the software being provided. The SaaS is updated wirelessly since both the program itself and all the data it connects to are stored in the cloud. Every update is executed automatically.
The customer does not need to download any more programs or spend a lot of time updating them when using the SaaS system, either.
The graph shows that from 2018 to 2020, the number of businesses offering SaaS solutions increased.
According to projections, the same indications (more than 20% of new SaaS companies entered the market) will increase by 30% by 2023.
Four Types of SaaS Solutions
SaaS development is more than just crunching numbers. To fully appreciate its commercial potential, you must comprehend its primary vectors.
Vertical SaaS
This kind of SaaS is created exclusively for the objectives and requirements of that industry. Any program that caters to a single industry, like a banking firm or a SaaS for healthcare, would serve as an illustration.
Horizontal SaaS
These solutions address typical issues in a large market and are appropriate for all types of enterprises in any industry. Applications for automating processes can include those for accounting, customer relationship management, managing advertising campaigns, and other applications.
Batch SaaS
It was exclusively designed for particular business procedures. For instance, a SaaS solution for help desk automation or supply chain management
Hybrid SaaS
In order to deliver the advantages of SaaS with greater security and user control, such applications mix SaaS technologies with an on-premise software application. Through the cloud, which is hosted by the software provider, the functional element of the software is displayed. A user can access a cloud-hosted environment with the application’s user interface, functionalities, and file-moving mechanism by logging in using a web browser. However, up until it is encrypted and sent over the Internet, the customers’ data is kept in whichever setting they desire.
Trend 1: Leveraging Artificial Intelligence
AI is popular everywhere and has application in SaaS. If you Google “how to design a saas application,” you will learn that, per a Gartner poll, roughly 40% of businesses are prepared to integrate this technology into their workflow in 2021, and that cloud AI is expected to grow five times faster in 2023 than it did in 2019. Automated analysis and cloud storage have the potential to revolutionize every sector of business. This is why AI is one of the most popular options for optimizing cloud platforms. So, even though this technology is still cutting-edge and, some might argue, unstable, businesses are prepared to take the chance and use it today. It’s also worthwhile. Predicting client behavior by examining their prior usage of the application is the finest use of AI in SaaS. It can also be used to automate pricing, help desks, and other things. SaaS AI can also increase user security for their digital identities. With the use of this technology, it is now possible to identify errors, data leaks, fraud, and even to stop cyberattacks.
Ways to Use AI in SaaS Applications
- development of highly customized applications. Artificial intelligence can enhance how much SaaS software is customized for the user. Changing the interface based on how a user interacts with the application, for instance, by placing frequently used functionalities in more handy locations on the page;
- planning future purchases. Artificial intelligence is able to foretell which products would appeal to various buyer segments;
- Estimate of customer value. Using analytical algorithms to forecast client behavior and value can significantly boost your business’s bottom line and aid in effective targeting.
The rising need for AI among large organizations is one of the factors contributing to its popularity in SaaS. Infrastructure firms are constantly setting trends, and industry juggernauts like IBM, Google, and Salesforce are using AI SaaS.
Trend 2: Growth in the Number of Micro-SaaS
The smaller SaaS platforms are an addition to the larger ones. Nearly everywhere you look, you can find comparable goods: on shopping comparison websites like Amazon Assistant, in grammar checker software (Grammarly for Google Docs and MS). They’re supplied as browser extensions for some of them.
Trend 3: Using Vertical SaaS
Working with a vertical SaaS gives a business more opportunities to draw the target market in with the special features of the application. They concentrate on a certain market sector, which enables them to adapt the interface to the requirements of their clients.
Additionally, there are many competitors in the horizontal SaaS industry. It gets harder to fit into the market when there are more rivals. A Crunchbase report from June 2019 states that there are more than 15,500 SaaS businesses globally. Most of them—about 60%—are horizontal SaaS.
According to Resource Finances Online, the vertical SaaS industry has increased by about thrice over the last ten years and will do so again in 2021.
Trend 4: A mobile-first approach
The most logical explanations for this trend’s existence are undoubtedly those causes. In 2022, 72.6% of people will use smartphones for work, communication, and web browsing, predicts CNBC.
Trend 5: Low-Code and No-Code Popularity
Because low-code represents the next significant development in the software business, it is a part of the SaaS market trends. Low-code platforms are development frameworks that put costly and high-error layers of application development in a near-finished state. Developers can now concentrate solely on business innovation by focusing on application logic and user experience.
A low-code solution can be used to create a variety of applications, from the most straightforward mobile app to the most intricate business system.
Because it allows developers of all skill levels to simultaneously use their own custom code and a visual, drag-and-drop system-building function, it is a fantastic solution.
You might think about the advantages of low-code development.
Visual workflow-planning
Business representatives without any development experience can understand the system’s design using the pre-made modules and the visual designer.
Eliminates IT Knowledge Differences Between Developers
Low-code does not require senior experience or understanding of many programming languages. Colleagues of all levels—from entry-level to senior—can collaborate on a project, fostering a sense of teamwork.
Fully Configurable
A drag-and-drop system can be linked to our current enterprise ecosystem or outside solutions using the open API for low-code solutions. These features produce a library of tools that are reusable, easily customizable, and can improve user experience, customer happiness, and save time for coworkers.
Mobile-Friendly
A growing number of consumers use their mobile devices to surf the internet, communicate with businesses, and make purchases. For building mobile apps or responsive, mobile-friendly web apps, low-code is ideal.
Trend 6: Migration To PaaS
Your infrastructure can be moved to the cloud using the Platform as a Service (PaaS) strategy, whether it is a private or public cloud.
For IT needs, a lot of businesses have their own data centers. As a result, a dynamically growing infrastructure frequently has excessive running costs. With the transfer to the cloud using Platform as a Service (PaaS), we provide a low-cost infrastructure solution.
Companies now benefit from the most cutting-edge infrastructure (Infrastructure as a Service, or IaaS) and operational services for things like databases, backup, recovery, storage, monitoring, VPN, and security.
Whether you choose a public cloud provider or the private cloud in the DATAGROUP datacenter, we will support you along your way and make sure the transition is easy.
Transformation to the Cloud in a Nutshell
- workshop on analyzing current infrastructure and defining goals;
- migration strategy
- Migration test;
- Migration: a one-level or multi-level transition of your IT systems to the most recent design;
- go live.
PaaS Migration – Your Advantages at a Glance
- a thorough examination of the architecture as it stands today;
- Open target architecture, a creative hybrid solution design, and the incorporation of public cloud providers;
- services and KPIs that are clearly specified;
- a clear SLA that includes monthly reporting;
- Advice and help from qualified DATAGROUP experts and engineers.
Trend 7: Focus on Reducing Churn
If you’re like the majority of SaaS managers, you’re dedicated to managing and expanding your company.
But in order to achieve that, you must make sure that you are satisfying the needs of your clients, which includes lowering turnover.
Reducing churn is a top concern for any SaaS management interested in cultivating brand evangelists who will stick with their company for the long term because organizations pay anywhere between 5 and 25 times more to recruit a customer than keep an existing one.
Every SaaS business owner deals with churn.
And although if it can’t always be prevented, it can be controlled if you implement a few of the aforementioned best practices.
As we’ve seen, lowering churn involves more than just making your product better; it also entails increasing the quality of life for your customers.
If you are able to achieve that, and make a significant impact in your clients’ lives, turnover will go down, and you can return to running and expanding your business—what you do best.
Trend 8: SaaS Analytics
SaaS businesses assess user interaction across all touchpoints using a method called SaaS analytics. Businesses evaluate user behavior using SaaS analytics to lower churn, boost customer engagement, and eventually enhance recurring revenue.
Data has changed how we interact with our users. We are able to recognize issues as they arise and act immediately. We are aware of who they are and what success means to them. But as we ushered in this data-centric era, something unexpected happened. Despite the explosion in the amount of data sources accessible, our understanding of the entire experience remained mostly segregated.
This problem is resolved with a SaaS analytics tool. Designed to make it simple for you to integrate with and, more importantly, completely comprehend the entire customer experience. Because every journey is different and every engagement matters.
The traditional approach to linear funnel analysis is out of step with contemporary user experience. Instead, SaaS analytics tool reports are stacked with segmentation and optional steps, non-linear, and multichannel. You will therefore be aware of where user abandonment occurs and how to deal with it, regardless of whether it’s a result of a marketing message, a product feature, a problem, or a support issue.
Subscription metrics determine the life or death of SaaS companies. Analytics are provided via SaaS analytics tools, which also automatically produce reports on all changes to subscriptions. Add columns for the package name, delta, new and old ARRs, and more! With real-time subscription data at your fingertips, you can keep ahead of churn and always be aware of where you stand.
No longer sufficient is first and last click credit. Measure the campaigns that bring in new users to your product and all activities that follow with a SaaS analytics solution.
SaaS companies’ viability is determined on their subscription stats. SaaS analytics tools are used to deliver statistics and automatically generate reports on any changes to subscriptions. The package name, delta, new and old ARRs, and more should all be added as columns! When you have access to real-time subscription data, you can stay ahead of churn and know your status at all times.
Credit for the first and last clicks is no longer sufficient. With a SaaS analytics solution, track the marketing initiatives that attract new customers to your product and all subsequent activity.
Trend 9: SaaS Connections and Integrations
The list of trends for software as a service includes SaaS integration. Application programming interfaces (APIs) are used to connect a SaaS service to another cloud-based application or on-premises software (APIs). The app can freely request and share data with the other app or on-premise system once they are connected.
Here are the main justifications for adopting it in light of this concept of SaaS integration:
It Provides Transparency
The list of software as a service trends also includes SaaS integration. SaaS application integration entails utilizing application programming interfaces to link a SaaS application with another cloud-based application or on-premises software (APIs). After establishing a connection, the app can freely request and share data with the other app or on-premise system.
Here are the main justifications for establishing SaaS integration, keeping this description in mind:
It Saves Your Team a Significant Amount of Time
Your team can now save an incalculable amount of time by not having to manually reenter data across applications or switch between them to locate particular data points. With their improved time savings, employees can do more jobs that are crucial to the firm.
Your customer success managers (CSMs) won’t have to update customer cases in both systems after you connect a ticket management system like Zendesk with a CRM like Salesforce, for instance. A case is automatically recorded as closed in SFDC after a CSM closes it in Zendesk. Your CSMs will have more time to devote to providing thoughtful responses to customers, proactively interacting with significant clients, etc. as a result of spending less time on this manual process.
It Improves the Employee and Customer Experience
Your staff are more likely to love their employment now that they can produce more strategic and intelligent work. And when they do, there is a greater chance that they will act in a way that makes your consumers happier.
Trend 10: White Label
White-label SaaS systems, which enable full resealability for a business wishing to rebrand the SaaS platform as its own, are another of the major trends in the SaaS sector. When marketed to customers, white-label products are intended to be completely branded-free. In order to further resell it to their customers, the clients may decide to add their logo.
White label software is fantastic for companies who can market a product but lack the technical know-how or funding to develop it. White-label SaaS products have the benefit of requiring less initial capital investment from organizations, which is a benefit. Smaller businesses find it to be quite enticing for this reason.
White-label SaaS products come in a wide range of varieties to meet the requirements of various business models. For instance, white-label food delivery apps enable aggregators and restaurants to brand their meal delivery platform. Because of this, a White-Label Food Delivery App excels.
Additional industry sectors that can utilize white-label SaaS products include:
online pharmacies
services for deliveries within cities
services for hailing cabs
services for hair and grooming at home
apps for grocery delivery
Last Words on SaaS Trends
The epidemic and the widespread transition of workers to remote work are the main causes of the growth. However, SaaS will keep developing even after workers return to their offices. Business leaders are aware of the advantages of cloud applications and do not want to abandon them.
In addition, experts predict that 75% of businesses would only utilize SaaS-based apps starting in 2019.
So, if you were debating whether to digitize your service and were seeking for advantages and disadvantages, we hope that this article has persuaded you. Give us a call, and we’ll assist you in finding a software development team for your endeavor.
