5 SaaS Technologies to Look Out for in 2023
As the pace of digital transformation and growth of cloud computing has accelerated, SaaS has become a preferred choice for growth. Beyond revenue growth, the asset-light nature of SaaS platforms means lower overhead and logistical costs, which are appealing to traditional companies. It frees them from doing the complicated technical work by partnering with major SaaS providers. For example, the proliferation of BYOD (Bring Your Own Device) at work has improved work flexibility, it has also introduced security challenges. Companies are addressing this challenge by onboarding SaaS-based mobile device management (MDM) solutions.
The on-demand, subscription-based nature opens up a wealth of opportunities and flexibility that the majority of companies prefer. The current decade has brought some significant trends in SaaS. Some of them will stick along with newer solutions that have the potential to change the business landscape. In this post, we are sharing the popular SaaS technologies to look forward to next year.
1. SaaS Business Intelligence (BI)
Saas-based business analytics is a delivery model for business intelligence in which applications are deployed, generally outside a company’s firewall, at a hosted location which can be accessed by an end user with a secure internet connection.
Due to its low cost and ease of use, cloud-based business intelligence software is in high demand for small businesses. The growing acceptance of cloud computing among various industries, increasing use of analytics to drive process and cost efficiencies, and growing acceptance of artificial intelligence (AI) and big data are contributing to the demand for SaaS BI.
2. Industry Cloud Platforms
Vertical cloud platforms combine software, platform and infrastructure as a service (IaaS) capabilities to provide specific solutions for different vertical industries. Industry cloud platforms are an emerging trend as they create value for companies by offering relevant solutions.
As per Gartner’s survey, the majority of respondents familiar with the concept of industry cloud identify themselves as adopters or potential candidates of industry-specific cloud platforms. The technology and research consulting firm expects enterprises to adopt vertical clouds to drive over 50 percent of their critical business initiatives, compared to less than 10 percent last year.
3. AI-Enabled SaaS
AI-enabled SaaS will play a significant role in the growth of the SaaS market. In India, AI-enabled SaaS could create USD 500 billion of market value by 2030, according to venture capital firm Stellaris Venture Partners and IFC, the investment arm of the World Bank.
Combining SaaS with AI capabilities enables businesses to discover more insights from data, improve security, and automate services. The technology may sound futuristic, but industries have already used this technology.
For instance, Tractable, an AI-centered SaaS solution for automobile insurance companies analyzes motor vehicle accidents. It then predicts repair costs in real-time, just like an insurance adjuster, thus allowing insurers and repair shops to quickly review auto claims at scale.
The competition in the SaaS industry is intense. Companies are finding it difficult to differentiate their offerings from competitors. Big and established SaaS companies solve a lot of problems for a lot of people but Micro-SaaS companies target a niche market.
Tyler Tringas coined the term and founder of Storemapper, the first-known example of the Micro-SaaS business venture. He defines the model as, “A SaaS business targeting a niche market, run by one person or a very small team, with small costs, a narrow focus, a small but dedicated user base, and no outside funding. Hence, micro-SaaS.”
These businesses are different from their larger counterparts because they offer various add-ons to SaaS services instead of the full product.
5. Mobile-First SaaS
Gartner predicts that the global SaaS market will grow from $102.06 billion in 2019 to $140.63 billion in 2022. Yet, for the last decade, SaaS mobile adoption seems to have been limited, mainly due to technological limitations. However, as mobile devices become more sophisticated, more companies are looking to shift towards a mobile-first approach.
As organizations around the world adopt SaaS solutions for a variety of business functions, a myriad of SaaS technologies will continue their steady growth. SaaS business spending and revenue are only likely to grow further, encouraging even more companies to prioritize SaaS.