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What are the current 2020 trends of SAAS?


The positive impact of SAAS and the cloud market is growing exponentially with the association of newer technologies like AI, IoT etc. The prediction of expansion in the global SAAS market was true and the statistics imply the same. While the Gartner newsroom predicted that the revenue mark of SAAS technologies would reach $85 million in 2019, it was a 17.8 percent increase from 2018, it is predicted simultaneously that the revenue can reach up to $278 billion as we enter the year 2021.



The popularity that Software As A Service (SAAS) has achieved does not depend on it being a technological advancement solution alone, but also as a full-fledged subscription based business model that swears by the metric of CAC. So, before we digress into the trends of SAAS 2020, let us know what makes it a viable option for businesses. 

  1. Flexible payment option- This is the key benefit of a SAAS solution. No need to invest in purchasing licenses or software updates periodically. The subscription-based model justifies the flexibility of payment mode and the resources that can be rented as per use by businesses. 

  2. Updates- The model suffices for the need for updation. With time, the software enables updation and development from the main server and the businesses can use them in real-time. 

  3. Accessability- Much like any other cloud-based platforms, SAAS models provide user-friendly options for easy reach and accessibility. Thus, anyone can use the platform from any device or location by providing some security inputs. Google Apps and Dropbox are great examples of SAAS based platforms. 

  4. Scalability- The ability to change the delivery model of the cloud-based software, credibly make it the first preference for businesses. With the added advantage of scalability, businesses can change their design as per requirement and it gives them an upper hand. 

  5. Safety and Security- Unlike any other platform, a SAAS based application provides an end to end structured security. So, even if a business faces system failure, the data is safely protected in the central server even if there is a breach or malfunction in the protocol.  

Now that we have familiarized ourselves with the idea of the SAAS system, focusing on its popularity and as a business model, we will discuss the current SAAS trends. 


The 2020 trends that you need to catch up with 

The shift that was observed in the customer expectations of SAAS users have highly influenced the trends that are about to follow this year.  According to Frank Della Rosa, research director for SaaS and Cloud Software at IDC, organisations will keep investing in SaaS to meet the digital needs of customers as well as employees and to equip for a post-COVID-19 return to a growth orientation. 

To quote Mr. Della Rosa, “IDC will continue to track changes in IT spending across technologies, regions, and primary and function markets due to the impact of COVID-19. Our research will be updated with the most current data as conditions on the ground are changing almost daily. 

However, these are the significant trends that are observed this year: 

  1. Artificial Intelligence - AI is the formula of effective and progressive business rule. It is the new mantra for generations to come. Though with immense potential that AI rests upon, only a portion of it is largely utilized. However, this scenario is going to change with AI’s entry in the SAAS field. Ml and AI together will evolve the classification of the software as a whole. Creeping in Pattern Recognition, Predictive Analysis, Optimization, Personalization etc. It synthesizes data accordingly to help businesses make better decisions. 

  2. White Labeling - This is a newer initiative taken by companies to use tools that look native. Simply called ‘rebranding solutions’ for the end customer. For example, assume that a business needs multiple softwares to continue working and needs a website tracking solution. Either they will develop one which will increase the costing and affect revenue, or they can rely on third party solutions. An easy and viable solution would be to take up a customized solution by any other service provider who has white-labelled to meet their company standards. Thus, white-labelled SAAS solutions are capturing the market with their customizable demand fulfilment.   

  3. Vertical SAAS - After horizontal SAAS that has been in the market for quite a considerable amount of time, it is time for vertical SAAS to spread over. The basic difference between the two is, while horizontal SAAS focuses on a holistic level of conduct and category. Like Hubspot, it is meant for marketing and sales, covering multiple industries. Vertical SAAS is narrow in perspective, as it focuses on specific industries, addressing the customer needs. For example, Genelco by IBM developed for life and health insurance policy processing and handling annuity-product portfolios.  

  4. Blockchain - Blockchain and SAAS together, can provide the unique feature that the world has been looking forward to, for a while. This more transparent option would provide much more than what SAAS offers its customers. And to combine, it can provide reliability, complete security and transaction through decentralized databases and enhance the business model.

  5. MicroSAAS- It is a product developed to enhance the formative direction of SAAS products. These are small designed tools that are plug-ins, extensions, accessories that aid other platforms. MicroSAAS is a focused solution that is easier to manage than SAAS altogether. MicroSAAS businesses are sprouting in places, not as a competition to the big giants but to make its only place like send to my cloud, that helps in uploading files and folders to directly and securely reach your cloud-storage. Another example would be Publer, it manages your social media activity.   

Since SAAS is a primary solution that needs extensions, these can be the best elements to add on. Product centric and customer centric solutions should be the part of the digital revolution that we need today and these are more convenient and affordable options to choose from. Be it industry specific transformations or holistic ones that are changing the scenes for the future, these trends are catching up with bigger and better visions for the Industry.  



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