The emergence of cloud computing enabled software gave rise to off-premise software maintained by third parties. It is one of the fastest-growing markets and has shown several projections in different fields such as management, customer service, etc. It has grown tremendously in the last 5 years and can expect to grow by 10% in the coming years.
The improved capability of cloud computing brought exponential growth in SaaS companies.
Cost-saving and ease of use were its primary features. With the presence of large enterprises and availability of good IT infrastructure, the US is leading in SaaS; North America alone contributes 40% shares of global revenue in SaaS in 2020.
All leading players like Amazon, Google & Microsoft have already started offering AI incorporated Saas.
Diving Deep into the 7 SaaS Trends
- White Label SaaS: It is the process where software companies develop software from scratch, test, and finalize the platform and sell it to other companies so that they can customize and label their brand with software and promote it. Food delivery Services, Taxi Service, Logistics & Dispatch are few examples of businesses that are using white label SaaS.
AgencyAnalytics is a white label reporting tool that keeps checking on business KPIs, finds business’ health metrics, and finds out how to take business performance to the next level. WordPress is one of the biggest open-source white label CMS that helps create an amazing website and is SEO friendly.
- Mobile Optimization: In the mobile-driven age, companies are finding mobile-optimized services as they are more inclined to use mobile dashboards. A large group of consumers prefers mobile to search for any service or product, so it has chances of high conversion rate.
- API in SaaS: Developers are looking to deeply integrate products into their application and to do so they need to access the API. API in SaaS is enabling different departments of companies to openly use software.
MailChimp is a SaaS-API that syncs all the email activity of the business with its database and controls automation workflow. Box API, allows developers to access the files stored in the box and use it as a content management layer in their application.
- Predictive Analysis using AI: This is an analysis where software or machine learn the behavioral pattern used by humans. AI-based predictive models can use data that is already available and get huge value from it. Artificial intelligence-driven data analysis predicts who your potential customers are, displays information about your competitors, and predicts what your target audience might want to buy and consume.
- Automation: The best example of automation is Chatbots. It has taken over human efforts. You no more need human hands for receiving customer feedback, as all these are now done by chatbots.
- Low Code in SaaS: Coding from scratch is no more needed by developers as Low Code has now become a trend. It allows developers to develop software with minimum coding and provides a drag & drop interface style that helps a non- developer to easily get into the SaaS market.
- Centralized Analytics in SaaS: The SaaS industry is increasingly becoming data-driven making business analytics more strong. It helps every member in business to discover facts from a single source. Data-driven decisions help to get ahead in the competition.
Amazon QuickSight, a cloud-powered business analysis platform performs advanced calculations from data and performs the analysis. Datapine BI is a scalable SaaS data analysis tool that prepares databases and presents them in the form of charts and graphs which can be used internally in business for reporting.
Overcoming SaaS challenges
The global AI- SaaS market is expected to benefit from the growing demand for cognitive computing and artificial intelligence. In addition, increasing adoption of cloud solutions can create huge opportunities in the global AI- SaaS market. Due to the increasing demand for the Internet of Things and the increase in the number of applications, there may be profit opportunities in the global AI- SaaS market. But still there is a lack of well-trained professionals & also companies need to overcome certain challenges;
- Unawareness: The velocity of SaaS has been hampered by lack of awareness. Usually clients seek a lot of on boarding and training assistance, which slows down the expansion of SaaS companies in customer acquisition and customer service. This is not the case of developed markets such as the United States where customers themselves learn about software with free trials, website registration, and product evaluation.
- Overlooking product-to-market fit: As already mentioned the milestone of creating a huge space is a task. With the emergence of new technologies, artificial intelligence and IoTs investors are now seeking “Intelligent automation”. This still seems a task as we need to align more efficiently on product cloud computing. For this, sufficient knowledgeable people will be needed to get AI enabled SaaS.
- Security concerns with SaaS: This threat exists in the global SaaS. Large companies must ask these questions: Can their systems meet the ever-increasing security requirements? or do they make their current methods and infrastructure vulnerable to data theft and other malicious cyberspace activities?
Revolutionize future SaaS with new solutions
In the past few years a new breed in technologies and enterprise solutions has emerged for companies. Large enterprises around the globe have started expanding their capabilities with changing technology in different horizons. With the emergence of AI into SaaS, there has been a paradigm shift in personalization, Predictive analysis & fast processes.
SaaS companies have already started adopting AI as the next approach for solving traditional challenges. AI represents a brand new era of SaaS and the possibility to embody new methods to advantage. We are seeing lots of the larger players pass into this area and enterprise specialists are expecting it’s growth in coming years.
Therefore, to see a shift in SaaS the companies should go beyond traditional SaaS and enter into the integration of artificial intelligence. This can unleash the full potential of your company and your products. Consequently, in case you are seeking to construct an AI-SaaS company, start building an expert team and automate it. Now is the time to implement AI in SaaS and you can improve your customer experience.
For consultation on AI augmented SaaS, connect with us.