Software-as-a-Service (SaaS) is transforming into an increasingly sustainable choice for businesses looking for accessibility, functionality, and diversity in a competitive business environment.
It’s feasible for businesses to run SaaS software solutions and digital data analysis without having to depend on installing and running software on their own systems and data centers.
Saas has been ruling the cloud computing market for a long time. According to Gartner, the service-based cloud app market will be worth $143.7 billion by the end of 2022. It is a growing phase that will determine the SaaS trends in 2022.
SaaS is a software distribution model that provides agile features and is economically viable. This makes SaaS one of the most dependable options for multiple business models and industries. It is also popular among enterprises due to its simplicity, security features and connectivity. Moreover, Software-as-a-Service platforms optimize business models which enhance business efficiency.
2021 was a pathbreaking year for SaaS in various industries. As we step into the new year, we will discover 10 crucial SaaS trends that will excel in 2022. So, let’s dig deep into the most important SaaS Trends that will shape the future of business.
The 10 Top SaaS Trends in 2022
From the incorporation of artificial intelligence to improved mobile optimization, these SaaS trends 2022 will determine the sector in this year.
In 2022, Artificial Intelligence (AI) will be well accepted in the heart of society. Artificial Intelligence technology is slowly turning out to be a SaaS industry fixture. New Innovations enable businesses to offer a better product, service, or content customization while getting a clear, data-driven understanding of the target market. This means, with the support of AI, enterprises can become streamlined and efficient with fewer resources and thereby offering a better ROI.
AI technology saw some crucial developments in the past few years, and we feel that it is time for AI to become a trump card, with a market value of $733.7 billion in 2027. In business, AI along with Machine Learning (ML) offers engagement between enterprises, users, and technology, taking the advantage of SaaS to the next level.
There are multiple features created by modern software companies that rely on artificial intelligence. With the help of AI and ML, this data learns from current and past trends and market patterns and informs you when something crucial occurs.
Artificial intelligence is expected to change the SaaS outlook in a number of ways, enhancing the important features of the SaaS model. When Saas is combined with AI, it allows enterprises to gain better value from their data, automate and customize their services, enhance security, and expand human capabilities.
How will AI assist in developing an enhanced SaaS future?
Customization – Software is much easier to work with technologies like natural language processing (NLP), which instantly processes human speech patterns and voice control. This can be used well in the customer service areas to offer personalization and better interact with customers.
Speed – AI powered SaaS speeds up business processes and operations, enabling enterprises to gain quicker responses to queries, make predictions faster, and fasten the responsiveness of their business processes.
Security – With the help of AI-powered automation, and the power of machine learning to identify patterns, SaaS security is improved by faster identification and negates any potential threats that pose a risk of security.
Data Intelligence – The precision of contemporary SaaS powered AI platforms makes it possible to study upcoming consumer trends, interests, and customer behaviors while bolstering crucial data from multiple sources and segmenting it to offer maximum business returns.
Integrations – In the coming years, it is expected that AI will integrate with a variety of software solutions. Due to this, it is possible to develop value-driven infrastructure that provide business-value creation for internal and external business practices.
Machine Learning is a subset of AI and is leveraged in SaaS to automate customer service reports and apps in a responsive way including AI-enabled chat with live chatbots. It will further centralize the onboarding process of SaaS. As Machine Learning is developed on an independent model, latest innovations will help software and platforms that allow enterprises to automate critical business operations apart from customer service.
The inclusion of ML will enable SaaS solutions to be self-improving, providing a degree of intelligence and efficiency that will boost a number of industries. Machine learning is one of the most rapidly growing segments of software and it is a trending SaaS 2022 topic. As Machine Learning becomes an important part of the AI-based software-as-a-Service model, a number of platforms will evolve that will assist enterprises:
- Gain a better understanding of the knowledge and skills to be learnt from every intricate task or operation.
- Dive deeper into the data and insights will allow you to get a competitive edge.
- Enhance collaboration and business operations through improved communication.
- Improve customer communication and service by customizing language, tone, and recommendations with the evolving needs and customer demands.
For example, Netflix provides customized content to its viewers and Amazon uses ML to understand their customers better and offer them a personalized experience while shopping.
The fourth suspect on our list is Vertical SaaS. Horizontal SaaS emphasizes on clients across any sector or industry segment, Vertical SaaS is totally personal and focuses on clients in the same industries and supply chains.
Some instances of this are healthcare analytics software, retail analytics, or contemporary logistics analytics. Businesses who are looking to profit from specialization think Vertical SaaS to be an economically viable, industry-focused option that enables them to refine the personalization of particular features.
Why Vertical SaaS Trends Will Have a Major Impact in 2022?
Vertical SaaS solutions have the ability to adapt features depending on the demand and industry. There are some amazing benefits of Vertical SaaS trends:
- Customer Intelligence – Allows businesses to gain industry-specific customer data and intelligence. It plays a major role to gain customer-focused data.
- KPIs – Vertical SaaS is linked with pre-defined metrics, KPIs, and analytics that enterprises can leverage to assess and address business processes and outcomes.
- Business Value – Software is developed to fulfil industry requirements and hence, it offers a high level of business value for business operations and performance.
- Data Governance – Vertical SaaS is equipped to address data governance procedures using the inclusion of industry-specific compliance abilities, which has the advantages of offering transparency.
- New Areas – As the demand for vertical SaaS solutions will rise, incredibly niche products and services will enter the market to meet industry pain points.
- Enhanced Criteria – Better quality service from industry-specific Vertical SaaS providers will continue to arise as each developer looks to differentiate itself from the ever-increasing crowd.
Next on this list is data-driven analytics. With the advent of digital transformation, businesses around the world are looking to streamline their business processes with the help of data analytics to get a better insight into their customers. Businesses will look to invest in analytics-enabled Software-as-a-Service solutions in 2022.
As a matter of fact, industry experts think that investment in analytics-centric SaaS models will increase by more than 20% in 2022. In 2022, analytics will be a major force in almost all service-related software solutions and will make business intelligence and data-analytics powerful to stay ahead of the competition.
These analytics will allow users to interpret their data from a single point of view and every team member will be able to access the business critical data. Apart from that, the centralized feature of SaaS models will allow users to access data from any device anytime and anywhere they want. Contemporary business intelligence enables this with the power of excellent software features and the digital environment where each team member has access to business analytics.
The API (Application Programming Interface) has been an integral part of software development for a long time, and this is why we have included it in our SaaS trends list of 2022. Some businesses may want to migrate their data to a cloud platform, but many companies would harmonize it with their existing infrastructure to improve it.
In the beginning, SaaS solution providers didn’t include a complete integration solution. That failure meant that it would complicate the work and make them disappoint their clients as a result. More SaaS providers look to offer better integration capabilities instead of redirecting their customers to third parties.
If you want to invest in a cloud vendor’s services, ask these questions for seamless integration:
- What abilities is the SaaS vendor providing our business to integrate the SaaS in our current business system?
- Can this provider also integrate the legacy system we use?
- Is our data protected while the integration process is being worked out?
Martech or marketing technology is a term that includes a variety of tools that assist businesses to enhance their promotional strategies by providing clear insights, enhanced processes, and better creativity.
It is true that the martech industry experienced a slump during the COVID-19 pandemic and it was due to poor practices. Now, as the SaaS industry explodes, more vendors are focusing on enhancing the customer experience (CX).
Rather than offering a one-size fits all solution and obsolete features, most martech SaaS companies have simplified their interfaces to make their solutions more accessible.
This means martech companies will now look to work on providing valuable insights which were not available earlier. Data analytics and BI platforms along with design solutions that need basic or no technical knowledge to use are key parts of martech.
It will allow businesses to improve their branding and customer experience with the help of marketing BI and data analytics.
Transition to PaaS
With the evolution of SaaS, most developers are now looking to prioritize customer retention more than customer acquisition and that happens through customer satisfaction.
Having said that, in 2022, we are hoping to see SaaS transformation towards Platform-as-a-Service (PaaS) that will boost enterprises to develop bespoke applications as add-ons to their current services. Businesses like Oracle and Salesforce have established PaaS-centric solutions to have a large chunk of the market share and we expect other businesses to join them in 2022.
Conneqtion Group is India’s first Oracle PaaS Partners. We help businesses to leverage the PaaS evolution and enable them to successfully scale at speed. If you are looking to take the benefits of the PaaS evolution, then get in touch with us by leaving a comment down below or contact us on email@example.com.
Client Retention and Churn
With the rapid development of SaaS, the platform providers are looking for ways to provide optimum value to their clients to increase retention rates and reduce churn.
Due to this, various platforms and innovations will come with personalized features and tools that offer access to a wealth of insights gathered to assist enterprises optimize their internal processes and meet customer needs.
Moreover, they are focusing on churn and retention by including custom onboarding tutorials and explainer videos, improved mobile optimization, and better platform notification. This will help you to grow and develop your business the way you want.
On the other hand, if you are a SaaS provider, by developing solutions that enable other businesses to build tools and content including but not limited to custom tutorials, videos, or custom features which will allow you to grow your business exponentially.
Emerging Cross-Platform Tools
One of the most grave issues that modern businesses face in 2022 is data dilution and fragmentation. According to a Harvard Business Review article, data fragmentation or scattering is one the most common roadblocks to business growth as it reduces growth, instills confusion, and leads to a list of missed opportunities.
The new age SaaS providers are looking to help businesses consolidate, organize, and access quality insights in a centralized location. Moreover, concepts like document management systems and digital asset management tools are set to evolve in 2022.
Document management tools enable team members to access files and documents from multiple sources including a digital dashboard. Digital asset management services also have a similar model but they specialize in assisting businesses to find and capitalize on the most important branding assets from different locations.
Another solution to the data fragmentation issue is the Integration Platform as a Service (iPaaS). iPaas helps businesses to leverage their data to its maximum capacity. The iPaaS industry is expected to reach $10.3 billion by 2025.
Software-as-a-Service platforms have emerged due to the need of “white labeling”, ‘no code’, and ‘low-code’ platforms.
SaaS white labeling is expected to grow further in 2022 and it is a method where a business builds a fully developed, tried and tested platform and sells it to other businesses so they can customize it and sell it under their branding. It can also be included as a part of embedded software or BI tools, where enterprises integrate a solution within their own app.
White labeling is great for businesses looking to gain a major chunk of the market share quickly and with minimal expense. If there is a ready-to-use platform, startups can emphasize on building value propositions and their branding.
Low-coding solutions are data centers that would not remove the need for developers or software engineers. However, low-code strategy allows them to focus on the other important issues to gain a competitive advantage.
Low code and no code innovations continue to grow and evolve due to the rising demand in the market. Some of the reasons why businesses opt for these options include:
- Push digital transformation and innovation.
- Reduce their current IT backlog and promote responsiveness.
- Reduce the requirement to hire difficult and expensive technical skills.
- Uphold the business against any technological churn.
- Enhance internal business processes.
The low-code evolution is worth a mention in our SaaS trends list for 2022. You would be amazed to know the predicted forecast for low-code technology would be worth $187 billion by 2030.
Conclusion to SaaS Trends 2022
We hope that the above 10 SaaS trends for 2022 will help you to understand the future of SaaS in the business landscape. Most developments have been continued from 2021 and some have evolved which will take the industry to the next level. These SaaS trends are a promise of a better future for the industry. The business demands today are robust and the SaaS industry is ready to tackle the challenges and provide economically viable solutions. What are your thoughts on the SaaS trends for 2022 and beyond? Let us know in the comments section. If you have any questions or concerns, you can contact us and we will be happy to assist.
Karan works as the Delivery Head at Conneqtion Group, a Oracle iPaaS and Process Automation company. He has an extensive experience with various Banking and financial services, FMCG, Supply chain management & public sector clients. He has also led/been part of teams in multitude of consulting engagements. He was part of Evosys and Oracle’s consulting team previously and worked for clients in NA, EMEA & APAC region.