The SaaS market is young, wild and competitive. This area is developing rapidly, so it is difficult to keep up with current trends. Whether you are a technology company providing software as a service or a professional looking for new and useful IT solutions, you will not be able to continue without understanding the latest trends in SaaS.
SaaS (Software as a Service) is a way of running software that allows users to connect to and use cloud apps over the Internet, and usually works on a subscription basis. In order for companies to retain existing clients and regularly acquire new ones, they must constantly improve their services. Read on and get inspired by a few trends in SaaS and features that you could learn or implement directly into your solution or business.
“Businesses cannot afford to respond to what their customers want; they must anticipate their needs.” – Parker Harris (Co-founder of SalesForce)
AI (Artificial Intelligence)
Artificial intelligence technology is becoming more widespread. Its market value is expected to rise to $ 733.7 billion by 2027. AI automates repetitive tasks, optimizing business processes, increasing productivity and efficiency.
AI primarily uses two types of algorithms – a neural network for anomaly detection and a machine learning algorithm for pattern recognition. Thanks to them, artificial intelligence is able to learn from trends and inform you about the achievement of the goal, but also about unexpected situations. This will allow you to have constant control over your business. For example, when tracking and monitoring a large number of KPIs, it is easy to lose track of what really matters. Artificial intelligence will help you safely monitor all your data, while predicting any fluctuations and changes. It is especially useful when you are thinking about better personalization, speed optimization, or increased security.
The software is easier to use with integrated technologies, such as neurolinguistic programming (NLP), which automatically processes human speech patterns and allows voice control. This technology can be deployed to customer service functions to improve personalization and better meet customer needs.
SaaS, with the support of artificial intelligence, significantly speeds up internal processes and operations. It allows companies to get quick answers to the necessary questions, but also to predict and accelerate the overall level of their response.
Thanks to automation and the ability to recognize patterns, artificial intelligence can improve SaaS security, for example by quickly identifying potential threats.
When combined with AI capabilities, SaaS will enable businesses to capture better data, automate and personalize services, improve security or supplement human capacity.
AI is one of the most dominant tools influencing SaaS. Software developers are increasingly integrating artificial intelligence into solutions in all aspects of life. For example, Tractable has adopted AI as a way to help automotive companies quickly and accurately estimate damage after an accident. Thanks to Tractable, the work that is normally done by a person is done by artificial intelligence using a computer vision algorithm.
Mobile-first is a way of designing a user interface that gives mobile devices the same level of importance as computers.
Enabling users access via mobile devices will speed up their workflow and increase their productivity. In addition, this step will increase your competitiveness and you will not have to worry that your clients will start using the service of a competitor who offers the same services in the form of a mobile app.
A good example is ServiceMax, which, among other things, allows users to manage orders and schedule tasks directly on their smartphones.
A micro-SaaS is considered to be a company focused on a specific market or filling a specific gap in the market. It is usually run by one person or a very small team, has low costs, a narrow focus, a small, specialized user base, and has no external funding. Storemapper is one of many examples of micro-SaaS that solves a very specific problem through analytics – it monitors which stores have the most traffic. The app can be installed very quickly, for example, on a website.
While horizontal Software as a Service targets clients from any sector and industry, vertical SaaS is fully adaptable and targets clients across specific branches and supply chains. A good example is Veeva software, which offers its services in the natural sciences industry. Companies that want to benefit from their specialization consider vertical SaaS to be a cost-optimal option for customizing certain features.
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Vertical SaaS providers also have the ability to tailor client and industry demand functions to effectively address customer needs within their specialization. The result is more flexibility, resale opportunities, and lower customer acquisition costs.
Knowledge of the target group
It enables companies to obtain data and information about customers, especially those specific to the industry.
Defined metrics and KPIs
Vertical SaaS is already integrated with predefined metrics, KPIs and analytics. These can be used by companies to evaluate and solve everyday and long-term processes or their performance.
Many SaaS providers, such as Amazon Web Services, Microsoft Azure, or Salesforce, migrate to PaaS (platform as a service). The shift from service to platform will allow businesses to create custom apps that complement their original services. They do so in an effort to maintain their strong position in the market. Therefore, we assume that this trend will continue to grow in the near future.
PaaS has three key benefits:
Improved features and personalization capabilities increase the overall agility of the business. It will give you more creative space for innovation and more time, so you can focus fully on your main business goals, for example.
PaaS offers are flexible and accessible. With a platform as a service, you will be able to expand your business more easily.
A significant advantage of the PaaS model is security, because the system regularly performs a number of automatic updates.
Software as a Service is a unique type of partnership from which your client can withdraw at any time and without much loss. If you plan to build long-term relationships with each of your customers, you must remain innovative and always be one step ahead of the competition. SaaS is gradually being formed and evolving, so we believe that innovation will continue to increase in this area. Until then, you may be inspired by one of the tips described above.