Software development is a dynamic field heavily affected by technological innovations. This is best seen within the SaaS niche, a business model that threatens to take over the entire market. Unlike its predecessor, Software-as-a-Service products are highly accessible, easy to maintain, and scalable solutions.
In the following few years, the SaaS field will likely be affected by the changes to cybersecurity and generative AI. We’re also seeing much more consolidation between businesses. In this article, we cover the upcoming trends that will change how we consume and buy SaaS.
1. Cybersecurity
Nowadays, companies are investing enormous sums of money to stay safe on the web. Even then, the number of malicious attacks is steadily increasing every year. As soon as security companies manage to alleviate one threat, another one steps in its place.
The biggest issue with cybersecurity is that every new technological advancement opens new avenues of attack but also potential solutions. For example, the introduction of AI created new threats for users, and, funny enough, the same technology can be used to prevent future threats.
2. Customization
One of the biggest advantages of the SaaS model is its accessibility. Even if you never used similar software, you can seamlessly introduce a new tool to your workflow. Every SaaS development company is looking to reach as many clients as possible by making solutions that can encompass various client profiles.
Ultimately, this gave rise to a new trend – customization. While getting as many clients as possible is great, having so many customer profiles means that the solution will be too broad for some users. As a way of alleviating the problem, many SaaS developers are now working on customization options that would make their tools better for users with specific needs.
3. Artificial intelligence
Many people are wowed by the advanced capabilities of generative AI. If you just check social media, you'll notice numerous posts revolving around artificial intelligence in art and text. While these tools already seem fantastic, we can expect more sophisticated solutions in the near future.
AI has made its stamp on the SaaS field, improving and automating many tedious tasks. Nowadays, this technology is commonly used for analytics, content creation, and customer support. As time goes by, we'll likely see more integrated solutions that can help commercial entities and casual users alike.
4. Market consolidation
When the SaaS market was brand new, small companies had a good incentive to compete against the bigger brands. In other words, there were so many opportunities and market gaps that you didn't have to think about whether your business was sustainable.
However, as the SaaS model became more popular, the market started becoming saturated. Nowadays, you have dozens upon dozens of tools that can perform similar actions, diluting the profits of larger companies while endangering the livelihood of smaller entities.
In an attempt to stay competitive, many brands are turning to consolidations. By doing so, smaller brands can survive the enormous market competition while eliminating marketing costs. On the other hand, larger brands gain access to new technologies that would cost a lot of money to develop in-house.
5. Micro approach
Besides joining hands with other brands, some businesses are looking for salvation in the micro approach. Unlike most companies, these brands are focusing on specific market segments with unique needs. That way, they don't have to face massive competition but, in turn, have to settle for smaller profits.
While the micro approach might not be great for larger, well-established brands, it can be a saving grace for startups. By developing unique solutions, these brands can find their place under the sun and ensure steady growth in the forthcoming period.
6. Macro approach
On the opposite side of the spectrum, we have a macro approach or vertical SaaS. These are all-in-one solutions specifically made for particular industries. The logic behind vertical SaaS products is that a company can buy just one tool for all their operational processes without having to resort to additional software spending.
Contrary to the micro approach, which is better for startups, the macro approach is much more suitable for large platforms. In fact, it can be a form of upscaling their previous solutions. By adding extra features, a software developer can turn their previous solution into a comprehensive suite while also increasing the pricing and overwhelming its competition.
7. No code/low code
Like in other software segments, there is more and more emphasis on solutions that require no coding or low coding. These platforms are fantastic for companies of all sizes as they increase operational efficiency and flexibility.
Most notably, these solutions allow brands to alleviate complex development tasks while focusing on marketing, sales, growth hacking, and customer experience. In other words, by minimizing your coding, you can maximize all these other processes that can ensure project success.
8. RevOps
Speaking of goal alignment, many software development companies are nowadays putting emphasis on RevOps as the best way to succeed in this industry. By combining marketing, sales, and customer success teams, brands can achieve maximum efficiency. Better yet, all employees will have to work together, focusing on the same objectives and sharing the glory.
Besides working internally as a way of improving your SaaS operational workflow, the RevOps concept can also be introduced into the software. You can create solutions for your clients that would make it easier for them to track various actions from a single dash.
Through RevOps implementations, your customers can gain a higher sales funnel visibility. They can learn how leads interact with content and what kind of actions would improve conversions. As a result, RevOps SaaS can serve as an integrated hub that can be used across various departments.
Conclusion
Keep in mind that some of these trends will be useless for certain companies. For example, if you’re a startup, there’s no point in forcing vertical SaaS development. However, when observed in its entirety, this list can serve as a development checklist that will guide your hand during strategic decision-making.
