SaaS Industry Trends and Future of SaaS in 2024

If you are a business, the year 2020 has certainly taught you a lot of things. The year was marred by a global pandemic but it also opened the eyes of entrepreneurs to see weaknesses in their chosen business models and to grab opportunities for survival. Physical businesses closed and what thrived were internet-based enterprises or those who were quick to adopt a work-from-home or online scheme.

One of the insights that the 2020 crisis revealed is this: whether you are a small or a mid-sized business or even if you are a big player in your industry, you have to integrate your business, or at least part of it, into a SaaS platform.

And no, we are not just making up the importance of making the transition to become a SaaS company – the business world and the IT people can’t stress it enough too.

According to 99firms, by 2020, around 85% of small businesses will incorporate SaaS solutions in their operations, and by 2021, 73% of companies will have all their applications under SaaS.

Additionally, according to research by the IT monitoring website, LogicMonitor, one of the top crisis responses that organizations made in 2020, was to invest in the Cloud or SaaS platform. In fact, 49% of these companies expanded their use of Cloud-based apps this year.

But wait. Are you already familiar with Saas and how it impacts businesses today and in the future?

If you are still at a loss about this technology, you need to step up your game and start learning about this new technology that businesses around the world are adopting – fast. Or else you’ll get left behind.

See Also:

• Why SaaS Is The Best Business Model
• How Do I Choose a CRM for My Business

What Is Saas?

Software as a Service is also known as SaaS and you may know it by its other more popular name in the market – the Cloud. When you adopt SaaS applications, you do not need any hardware or installer. You only need to log in to a Cloud-based application and you are now ready to get started.

All you need is a stable internet connection and a reliable web browser on your mobile phone, computer, or other similar devices.

Saas is a method that frees you from the rigorous IT requirements of using the software. It’s a simplified all-in-one app usage solution.

What Are the Types of SaaS?

There are different kinds of Software as a Service platforms available today. Here are some that you should be familiar with.

1. Vertical SaaS Solutions – are SaaS applications that are designed to respond to the needs of a specific business market. A vertical SaaS solution may cater to a single field such as healthcare, technology, design, tourism, or communications. A good example of this is background removal applications that belong in the art or editing niches.
2. Horizontal SaaS – is a type of SaaS software that provides solutions to the common needs of multiple industries. It caters to a broader spectrum or a whole industry, unlike a vertical SaaS app which only serves a specific need. A horizontal SaaS software can cater to a company in the business, healthcare, banking, finance, or other sectors. Applications like Slack, Salesforce, Hubspot, and Quickbooks are examples of this type.
3. Packaged SaaS products – Packaged SaaS – are, as the name implies, pre-packaged Cloud-based applications designed to provide an all-in-one solution to organizational needs. Since SaaS apps are usually subscription-based, it would come as no surprise if they are offered as a grouped product. An example of this is Google’s Gsuite and Microsoft’s Dynamics.
4. Collaborative SaaS applications – are those which allow multiple individuals to work on jobs at the same time to finish a common project. To collaborate means working together to create something. Collaborative SaaS software is also called groupware.

SaaS Industry Trends 2024 and Ideas about the Future of SaaS

Is the Software as a Service platform worth the company budget that you will spend? Here are insights considering the current status of SaaS and what its future looks like.

1. More SaaS Apps on Data and Analytics

There is a demand among businesses and organizations to monitor, process, and analyze various data. Right now, there is growth in SaaS apps on data and analytics. Gartner predicts that apps on data analysis will see a 23.3% surge from 2017 to 2022. So by next year, we are expecting that analytics will take the limelight when it comes to specific SaaS solutions.

2. Automation Tools Are on the Rise Too

According to HubSpot marketing statistics, the yearly expense allotted for marketing automation tools will amount to $25.1 billion in 2023. In business, time is of the essence, and finishing your tasks fast may mean revenue for the company. So it comes as no surprise if automation is luring organizations in.

In 2024, expect businesses looking for processes to be automated for the better. And when it comes to automation systems, SaaS platforms provide the answers.

3. Welcome Micro-SaaS in the Fray

Micro-SaaS are applications made by independent SaaS vendors or a small team of developers to respond to the very specific needs of users. Think of add-ons for bigger apps – like the extensions on your web browser. More of these products are anticipated to enter the SaaS market in 2024.

4. Tighter Security

With more applications and more users, it is only expected that vendors are pressured to improve the security of the SaaS platform. With years of reliability, the Cloud is proving to be a safe space for its customer’s data – and more so in 2024.

5. Increased Spending on Cloud-based Software

The International Data Corporation or IDC reports that public spending on Saas and Cloud-based applications will rise from $229 billion to $500 billion.  This is just one of the indications that SaaS is in demand by businesses and organizations. Companies are adopting SaaS solutions today and more organizations will do so in 2024.

See Also:

• Why Mobile Apps Are Important in Modern Business Environment
• In-house Development vs. Outsourcing: Benefits and Drawbacks
• 5 Main Challenges of Hybrid Mobile Application Testing
• Top 5 Challenges in Developing FinTech Apps

Conclusion

These are just a few indications that Software as a Service (SaaS) has an optimistic future. If you want to see your company grow, learn the SaaS industry trends in 2024. And right now, the trend in business is to invest in SaaS solutions.