The year 2020 witnessed how the COVID-19 global pandemic influenced ripple effects across various sectors in the society and economies for years to come. The tech ecosystem was not excluded from the clutches of the Pandemic. But among all the negatives, some certain industries and sectors were fortunate to thrive amidst the chaos.
SaaS (Software as a Service) proved to be one such area where the techies from around the world were united to keep the innovative spirit alive.
This was already an industry that had a revenue projection of $223 Billion by the year 2022. But these projections escalated in 2020, as the industry saw a growth equivalent to three to five typical years.
It was mainly resulted by businesses having to go through unexpected repercussions of the Coronavirus outbreak. Overnight, businesses were forced to adapt their survival mode, cut down non-essential costs and implement immediate coping strategies that saw the introduction of new working patterns, tools and services.
Learning to manoeuvre Zoom online meetings, sharing large files across various online platforms and keeping track of e-mail outbursts, suddenly became the daily routine. And SaaS proved itself to be a saviour industry for all others during these tough times.
Some of the unique trends within SaaS are highlighted as key components for the industry’s projected further success in 2021.
The demand for Micro-SaaS skyrocketed over the last nine months. This is a product that is highly focused on a niche market, with a limited but devoted customer base. It is designed to cater to the needs of a clearly defined problem of a user. Micro-SaaS products can either be stand-alone like Boomerang for Gmail, or an add-on to another product like Grammarly. This has now become one of the most interesting areas that SaaS techies are hyper-focused on.
Artificial Intelligence & Machine Learning
AI and one of its singular branches ‘Machine Learning’ have also become significant growth elements in SaaS. Software developers are integrating these into most of their mobile applications lately. It is forecasted that in 2021, more companies and businesses will utilize machine learning and AI to protect their data and users, in which they will be able to analyze potential threats while protecting themselves from malware, abuse and criminals.
Another highly in-demand space where COVID-19 is ensuring creative opportunities as businesses are on the lookout for enhanced customer experience to drive revenue. Vertical SaaS offers customized solutions targeted towards addressing the pain points of specific sectors. This in turn further business value and improved customer satisfaction in terms of services.
Increased Spending on Cloud Services
The Worldwide Public Cloud Services Spending Guide has forecasted that global spending on public cloud services and infrastructure will more than double over the period of 2019-2023, with an increased value of up to $500 Billion by 2023. SaaS is the dominant category and it will be a catalyst for investment opportunities for all industries.
With ensured efficiency, enhanced productivity and user experience, SaaS is an industry that had only started to prove its worth. As you are reading this article, SaaS is evolving, adapting and learning. 2021 will surely accelerate the industry’s growth opportunities.