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What Are The Opportunities For The SaaS Enterprise Applications Market In The Future?

14 Oct

Technology is an ever-changing field. Every now and then new innovations are introduced.

Cloud computing is one of the best new entrants in the field of technology. Technology is meant to make life simpler. Cloud integration solutions have the potential to reshape the working of industries. Let us first start with an introduction to Cloud computing:

What Is Cloud Computing?

According to officials, Cloud computing is the delivery of computing services including servers, storage, databases, networking, software, analytics, and intelligence over the internet. In layman terms, Cloud computing refers to the storage of large chunks of data on a single system. The stored data can be accessed anywhere and anytime provided internet connection should be there. Cloud computing not only helps in the storage of data but also manages and optimizes data. Cloud integration solutions have made work a lot convenient.

The Models Of Cloud Computing

Cloud computing basically works on three models:

  • Software As A Service (SaaS): Software as a Service is the most accepted and used Cloud computing service. It is also called Application as a Service. People have mostly adapted to this version of Cloud computing. SaaS works on a per-user basis. It is considered the most dominant Cloud computing model. We will be discussing SaaS in detail in this article. Read on to know more.

  • Infrastructure As A Service (IaaS): IaaS is the fundamental building block of computing services. This model is used by enterprises that want to build applications from scratch. It allows controlling each and every element in an application. As per research, two-thirds of IaaS users said that using online infrastructure makes it easier for them to innovate, cuts down their time to deploy new applications and services, and significantly cuts on-going maintenance costs.

  • Platform As A Service (PaaS): Platform as a service deals with the storage, database management, operating systems, development tools, and many more. It is embedded with tools and hardware that developers use to build applications. Are you thinking of getting a customized service? You can take the help of a custom software development company.

The Benefits of Cloud Computing

Cloud computing is designed to provide lots of benefits to everyone from individuals and businesses of any size to enterprises. The top benefits of cloud computing are reduced workload, optimized performance, cost cuts, remote access, and many more.

Examples Of Cloud Computing

Cloud computing covers lots of services. It helps in services such as Cloud backup of photos on smartphones. It allows storing all data in the cloud. It provides the feasibility to access electronically-stored data from anywhere at any time. Enterprises can easily run applications on the Cloud. Netflix is currently well adapted to Cloud computing. Cloud computing is by default used in many applications. A custom software development company has been helping businesses with providing customized solutions.

Working On Cloud Computing

Companies rely on Cloud computing for storing data and maintaining their infrastructure. It helps to reduce the maintenance cost and ensures the security of data. In turn, Cloud computing benefits enterprises by providing them large-scale services.

What Is SaaS?

SaaS or Software as a service is the most dominant model of Cloud computing. It is rapidly growing to meet an enterprise’s needs. SaaS primarily helps IT services to build and deploy applications. SaaS allows either host applications on the same server or on third-party Cloud computing services. The key players of the SaaS enterprise application market are Inc, IBM, Oracle Corporation, NetSuite, Epicor Software Application, Microsoft Corporation, Acumatica, Plex Systems, and Ramco Systems Ltd, and SAP SE. SaaS software development services help businesses by providing them better Cloud solutions.

What Is The Current Market Value Of SaaS?

Accounting for two-thirds of all public cloud spending in 2017, which only dropped slightly to just under 60% in 2021.

Customer Relationship Management (CRM) and Enterprise Resource Management (ERM) applications will account for more than 60% of all cloud applications spending through to 2021.

According to Gartner, SaaS solutions will generate revenue close to $105 billion in 2020 alone. That is $20 billion more than what Gartner estimated for 2018.

Another most important reason currently behind SaaS touching greater heights is the ongoing global coronavirus pandemic. Though most enterprises went on a toss, Cloud computing is in a bright spot. The growth of SaaS is currently arguably the brightest. Let us have a glimpse of SaaS vs other cloud services:

The total market of SaaS was the highest in 2019 with 102,064 US million dollars. It is still the highest in 2020 with 104,672 US million dollars and will continue to be the highest. It is expected in 2022 that the total market of SaaS will be 140,629. This huge jump clearly depicts that SaaS is here to stay with no signs of signing off. Are you thinking of integrating SaaS in your business? You can take the help of SaaS software development services providers.

According to compound annual growth rate projections over a five-year period, SaaS is expected to grow 12%. The top 10 largest publicly owned SaaS companies in ascending order are Twillo, Paycom, Zoom, Veeva systems, Square, Atlassian, Workday, Shopify, Service Now, and Salesforce.

According to recent research, by 2021, 73% of organizations will be using all or most of SaaS solutions. Nearly 85% of small companies have already invested in SaaS options. Despite security concerns, 93% of CIOs indicate they are already adopting or are planning to adopt SaaS solutions soon. Now, let us go a bit deeper into SaaS solutions.

Read the blog- What You Should Consider Before Choosing Any Logistics Software Custom Vs. SaaS?

The Advantages Of Using SaaS

From a customer’s as well as an enterprise’s perspective, SaaS offers ample advantages:

  • Less Software Deployment Time: SaaS models save a lot of time for developers. Earlier it used to take several weeks to deploy software. A few years back the time reduced to days. But, now with the introduction of software as a service model, it takes just a few minutes to deploy software. Hence, the strategic value of SaaS is higher. SaaS application development helps companies to build and deploy an application in a shorter time.

  • Higher Employee Engagement: SaaS solutions are designed to enhance customers’ experiences. This has led to more employee engagement in firms.

  • Quickly Fixes Bugs: Earlier bug fixing or any update consumed a lot of time. It had to go through several layers before getting fixed. Before reaching the end-user it had to go through organizational protocols and governance. But now, with the use of the SaaS model, it is easier to fix bugs.

The Key Characteristics Of SaaS

SaaS is a dynamic working model. Businesses rely on innovative technologies for more efficient and productive solutions.

  1. Accessibility: SaaS allows businesses to access applications from any device and any location around the world with the help of an internet connection. You can access applications from any device with internet connectivity.

  2. Flexibility: SaaS eliminates the need for purchasing and maintaining hardware devices. It also provides the flexibility to pay from any pricing model.

  3. Updates: Businesses using SaaS do not need to invest a lot of time in updating applications. SaaS handles this area as well as integrates new features. SaaS application development services help to build applications that can be used on any device.

  4. Security: SaaS is well known for its enterprise-level solutions. Since the data is electronically stored here, it takes charge of security. Along with security it also helps with disaster recovery.

The Opportunities For The SaaS Enterprise Application Market In The Future

  • A Mobile-First Mindset: It is expected that by 2022 around 72.6% of users globally will be using mobile phones to browse the internet. We are heavily dependent on mobile devices. Most of the time of the day is spent on mobile. From a business point of view, mobile devices help people to connect from anywhere irrespective of the limitation of geographical location. It is handier to carry mobile phones than any other device such as laptops. Mobile phones give the flexibility to be productive 24/7.

This mobile-first mindset is remarkably growing to shape the future of SaaS. It is easier for companies to operate through smartphones as well as more flexible for employees to do jobs through mobile dashboards. The mobile-first mentality is undoubtedly a highly convenient and portable Software as a Service solution. Do you want to integrate Cloud solutions into your business? You can take the help of Cloud computing services providers.

  • Artificial Intelligence: Artificial Intelligence is widely accepted among users. It is one of the topmost and impactful tools in terms of usability. AI helps to transform businesses and increase their productivity as well as efficiency. It is an autonomous variety which is developed to provide human-like solutions. It offers advanced integration between businesses, consumers, and technology.

Initially, only AI was spread all over. But now, AI-based SaaS is taking the whole operation to the next level. Here, an AI-based algorithm is used for anomaly detection, whereas a machine learning algorithm is used for pattern detection. It notifies users when something unexpected happens. AI-based SaaS allows us to take charge of a business and is designed to disrupt the SaaS landscape in multiple ways. Have a look at some of the ways in which AI will improve SaaS in 2020:

  • Speed And Security: AI predicts the future on the basis of the data stored. AI helps to speed up the internal processing of SaaS and in turn the overall level of responsiveness. AI with machine learning is quicker to recognize patterns and hence helps to enhance SaaS’s security. Cloud computing services providers can help businesses to integrate this new technology.

  • Automation: AI helps to reduce workload by automating the onboarding process of Software as a Service. ML in SaaS helps to automate the responsiveness of applications.

  • The Growing Need For API Connections: Application Programming Interface has always been the building block of the SaaS platform. Companies are shifting towards cloud-based applications. Some companies prefer migrating all data to Cloud platforms whereas some prefer to harmonize Cloud with their existing platforms. Initially, there were some issues in integration so third-party cloud APIs were used. But now vendors are providing better integration capabilities.

  • Vertical SaaS: Mainly there are two types of SaaS, namely vertical SaaS and horizontal SaaS. Horizontal SaaS is for the masses. It targets clients across any sector. On the other hand, vertical SaaS is enterprise-specific. It is designed to provide tailored services according to the niche. It targets audiences in a specific supply chain. Vertical SaaS helps companies to provide cost-effective and refined customized solutions. Have a look at the benefits of vertical SaaS:

    • Business Value: Vertical SaaS is designed to suffice industry-specific requirements. The tailored solution helps to take the business value to the next level. It significantly helps to enhance the performance of a company.

    • Customer Intelligence: Vertical SaaS allows industries to get customers’ personal details. This helps to know the preferences of customers. Customer intelligence plays a crucial role in gaining customer-focused insights.

    • Higher Quality Service: In this cutting-edge competitive world, companies need to deliver high-quality service. Vertical SaaS helps enterprises to customize services as per requirements and deliver the best quality services. In near future, this service will improve in order to stand out from the crowd.

  • Increased Thought Leadership: Leadership is going to provide ample latest opportunities for the SaaS enterprise application market in the future. According to a survey, presently only 24% of SaaS businesses publish content to educate or enlighten and 11% of the primary players do not even operate a blog. In the future, it is expected that more and more startups will be competing for the SaaS landscape. The aim will be to educate more and more about SaaS through engaging content such as videos, interactive apps, eBooks, blogs, vlogs, and many more. Inspiration and education is the ultimate solution to serve the needs of the target audience. Every web development company in USA has been helping businesses with great solutions.

  • Platform Unbundling: The term “platform unbundling” might be new to many. So, first, let us break down the term in order to understand the meaning of unbundling. The term “unbundling” refers to rising startups who provide software-based solutions. With the increasing use of the internet, horizontal services are losing their charm, and the industry is moving towards vertical services. Companies need customized services, unlike most traditional software where most features and functions consist of a single tool. With the increasing demand of users, platform unbundling has come to the rescue. Companies are quick to understand the importance of customized services. All the services on a platform are not meant for all sectors.

Startups provide software solutions in the form of the Application Programming Interface. These businesses are expected to rise in the market in the future. Though sometimes centralized data is more important, in such cases unbundling is not promoted.

  • Branding Developments: Branding is about creating a unique identity for a business in the market and knowing its audience. Product branding is set to reach heights in the upcoming years. Software vendors know software marketing trends well. Branding has played a crucial role in the success of SaaS. Lots of innovative and creative branding solutions are possible with the integration of SaaS in branding development.

Branding helps companies to get under the skin of the target audience. In the current era, it is important to focus on branding so as to have a unique digital space.

  • SaaS Pricing Policy Change: Earlier flexible pricing structure model was mostly used by the SaaS companies. Initially, due to fewer industries and fewer number of users, this pricing model was apt. But now, due to a seismic shift in industry businesses are compelled to change the pricing model. The rapid development of the SaaS platform and higher competition has reinvented the pricing models. As per studies, 98% of SaaS businesses earned positive results from making core changes to their pricing policy.

  • Micro-SaaS: Have you come across the term micro-SaaS? Well, as the name suggests, micro-SaaS means a SaaS solution that involves less number of people and smaller solutions that complement the bigger solution. To be more accurate with the definition of micro-SaaS, here is a definition by Tyler Tringas: “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 is micro-SaaS”.

Read the blog- The Best Approaches to Reduce the Cost of SaaS application development

We are living in a highly competitive world, where continuous progress is necessary in order to maintain one’s position or uplift it. Once you stop working it will lead to saturation. Any innovation, after being widely accepted, needs to modify its services. With the rise in a company, a large number of players start to enter the field. This compels SaaS companies to work towards creating more innovative solutions.

Micro-SaaS businesses are run by a small team and the products delivered are usually complementary to existing platforms or enhance existing SaaS products. This depicts that in near future we can expect more micro-SaaS innovations. If you are thinking of integrating Cloud solutions into your business, you can take the help of a web development company in USA.

Why Is SaaS So Popular?

SaaS is hugely being accepted by businesses of all sizes. SMEs and startups have been adopting this subscription-based pricing model. With the increasing use of SaaS and its versatile performance, it is being used by established enterprises as well. The market demand for Software as a Service is growing exponentially. According to a statistic of SaaS marketing solutions, the number of products increased from 500 to 8,500 between 2007 and 2017.

Wrapping Up

SaaS has lots of opportunities in the future. Here we have discussed SaaS in detail.

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