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What are the current 2020 trends of SAAS?


This is a sample blog from ThePendits, for the SAAS industry. It is a blog that would refer you with the format and style that is maintained in our blogs for the specified industry.


With SAAS companies riding the crest over the past decade, and the immense possibilities of newer technologies like AI and data discovery tools, the cloud market is all set to be swept off its feet in the years to come. The expansion in the global SAAS market seems to adhere to its positive predictions as the statistics imply.

While the Gartner newsroom predicted that the revenue mark of SAAS technologies would reach $85 million in 2019 (17.8 % increase from 2018), it is simultaneously expected to reach up to a whopping $278 billion as we enter the year 2021.


The popularity that Software As A Service (SAAS) has achieved does not depend on its being a technological advancement solution alone, but also as a full-fledged subscription-based business model that swears by the metrics of CAC.


Before we digress into the trends of SAAS 2020, let us explore what makes it a viable option for businesses.


1. Flexible payment option: The key benefit of a SAAS solution is the subscription-based model. One needn’t invest in purchasing licenses or software updates periodically. The subscription 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. Over time, the software enables updation and development from the main server and the businesses can use them in real-time.

3. Accessibility: Much like any other cloud-based platforms, SAAS models provide user-friendly options for easy reach and accessibility. Thus, anyone can access the platform from any device or location by providing the necessary 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 gives them an upper hand in the competitive market.

5. Safety and Security: Unlike any other platform, a SAAS based application provides an end to end structured security. Even when a business faces an unanticipated system hardware failure, a protocol breach or malfunction, the data remains safe, protected in the central server.

The 2020 trends in SAAS market that you need to catch up with:

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 seems to be the much-awaited secret code for activating potential businesses. It has become the new mantra for effective customer-interaction and engagement. With the immense potential that AI rests upon, only a meagre portion is utilized of its possibilities.


But the amalgamation of Ml and AI will initialize the evolution of software service as a whole. Factors like Pattern Recognition, Predictive Analysis, Optimization, Personalization etc. will help synthesize data effectively for a wider client-base, accelerate customer satisfaction and help businesses in better decision-making.

2. White Labeling

This is a newer initiative taken by companies to use third party products, tools or services that are then rebranded for customised use. If you buy a certain software solution manufactured by a third party, the sellers will retain their logo or trademarks but you will own the software IP. This sits light on many businesses, especially SMEs, as it is a huge money-saver.


For instance, if your business is in need of multiple software for consistent business growth, and have to develop a customised software solution from scratch, that could be a time-taking and cost-consuming process. Further, as the trends keep rolling, the solutions could prove out-dated, calling for better replacements.


An easy and viable solution is to take up a customized solution by another service provider who has white-labelled its products and use that to meet their company standards. This brings down the cost and gives ample “business space and freedom” as white-labelled SAAS solutions “manage” the customized demand-fulfilment effectively.

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, vertical SAAS is narrower in dimension.

Horizontal SAAS (say, like Hubspot) is meant for marketing and sales, covering multiple industries, while vertical SAAS focuses on specific industries and addresses the customer needs. For example, Genelco, by IBM, that was 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.


Blockchain is a digital record of transactions and is used for recording transactions applied in cryptocurrencies, such as Bitcoin. Spreading over extensive computer networks, a regular blockchain operation would permit such applications like Bitcoin to operate independently, without requiring a central authority. This helps to reduce risks and makes the processing easier and convenient.


Blockchain-based SAAS or BaaS has become a more transparent option with better reliability, security and transactions, through decentralized databases.


5. MicroSAAS

MicroSAAS is a product developed to enhance the formative direction of SAAS products. These are small designed tools that are plug-ins, extensions, and accessories etc. that aid other platforms.


MicroSAAS is a focused solution that is easier to manage than SAAS altogether. MicroSAAS businesses are sprouting extensively not as a competition to the big giants but to fit into its designated spaces. An example is sendtomycloud, that helps in uploading files and folders to reach your cloud storage directly and securely. Another example would be Publer, that manages your social media activity.

Winding it Up

Since SAAS is a primary business solution that needs extensions, these current and upcoming trends contribute to its getting a greater grip on the market and the business spectrum. Product-centric and customer-centric solutions will be an essential part of the digital revolution and these trends are affordable and extremely convenient options to choose from.

Be it industry-specific solutions or holistic evolutions that are transforming the business scenario for the future, the recent trends in SAAS are catching up with bigger and better visions for the Industry.





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