The Top Five SaaS Business Trends to Expect in 2021
The Top Five SaaS Business Trends to Expect in 2021
Software-as-a-service (SaaS) is becoming a more viable alternative for firms seeking accessibility, flexibility, and versatility in today's competitive business environment.
Without needing to install and run apps on their own computer systems and data centres, businesses can employ SaaS software solutions and online data analysis. As a result, these technologies are growing in popularity year after year.
SaaS is taking over the cloud computing industry. According to Gartner, the service-based cloud application market will be valued at $143.7 billion by 2022, a degree of growth that will define SaaS trends in 2021.
SaaS (Software as a Service) is a software distribution model that offers enterprises a high level of flexibility and cost-effectiveness, making it a highly reliable alternative for a wide range of business models and industries. It is also popular among organisations due to its simplicity, user accessibility, security, and global connectivity. As a result, software-as-a-service platforms improve overall efficiency by streamlining business models. The majority of companies are currently using various business intelligence strategies and relying on SaaS BI products to assist them.
In many respects, last year was a major turning point for the SaaS industry. With an innovative year approaching, we'll take a look at 5 key SaaS developments that will be noticeable in 2021.
1. The Rising Demand for API Connections
The API (Application Programming Interface) has been an important part of software development for many years. The need to integrate SaaS solutions into an existing business system arose as the number of SaaS solutions grew and the market adopted them. Some businesses may wish to move all of their data to the cloud, but many would like to integrate it with their existing infrastructure in order to improve it – and here is where the issue lies.
SaaS firms did not initially provide a comprehensive integration solution. As a result of their failure, the work became more complicated, and they disappointed their consumers. They would then send their clients to a third-party provider who would provide the specific APIs needed to integrate the cloud service with the customer's existing system. In order to save time and money, SaaS developers should avoid reinventing the wheel and instead rely on third-party APIs. Their time to market was quicker, and they were able to focus on developing differentiated features by focusing on their core strengths.
However, rather than diverting their clients to third parties, an increasing number of SaaS suppliers are providing deeper integration possibilities. If you want to invest in the services of a cloud vendor, you should ask the following questions ahead of time to ensure a smooth integration:
- What capabilities does the vendor have for integrating the SaaS with my current business system?
- Is this service capable of integrating my legacy systems as well?
- Is my information secure while the integration process is underway?
2. Data Security and Management
It is pretty crucial to maintain your data secure because only in 2021 36 billion records have been stolen and compromised. Shifting from traditional software to SaaS models brings with it a new set of challenges.*
One of the most difficult challenges for every firm is data security and management. There's a danger that essential company information will leak if data isn't properly safeguarded, and organisations will suffer damages.
Data privacy and security requirements are increasingly well-known among users of online SaaS products. As a result, SaaS suppliers must investigate this thoroughly. SaaS technologies with improved data protection and management criteria will be in great demand. To compete in this sector, Software as a Service suppliers will also need to comply with GDPR laws and enact stricter policies on their own.
3. No Code Tools
The use of SaaS technologies is not confined to the IT industry, and it is growing quickly. As more non-technical people utilise SaaS products, it's critical to create tools that everyone can use.
Companies have claimed that 40% of their consumers have no technical expertise, therefore designing software that anybody can use is a must for SaaS providers.
As a result, no-code tools have begun to appear. Customers can use these tools to finish jobs even if they don't know how to code. The UI/UX of such SaaS tools is excellent, allowing users to execute tasks with just a few clicks.
No-code tools are frequently easier to use and have fewer errors. No-code technologies can assist SaaS organisations in reaching out to a larger audience, resulting in increased sales and revenue.
4. Increased Customer Success:
Turnover is one of the most significant obstacles to the launch and long-term success of SaaS businesses. Customer Success' key purpose is to keep customers engaged and reduce turnover, which is a major concern for all SaaS organisations.
Many organisations will devote more time, resources, and money to customer success in order to educate and support new consumers and businesses. Their goal is to not only demonstrate value, but also to seamlessly incorporate their SaaS products into their business operations. Companies that quickly see the value of a SaaS solution are more likely to stick with it in the long run rather than abandon it.
To minimize turnover in 2021, SaaS organisations will create more training material, improve onboarding, and focus on customer success.
5. Alternative Payment Model
For many years, the subscription-based model has served SaaS enterprises well. Its ease of use and dependability should not be underestimated. What's wrong with this tried-and-true payment approach, you might wonder? Well, we think you already know the answer: these approaches may limit some demands and repel clients who just want to pay for the resources they utilise.
You should keep up with another developing trend to attract new partners and better serve existing clients' needs: the pay-per-use (PPU) model is the new child on the block. The approach generates favourable conditions for rapid corporate growth. You may also combine it with a subscription-based model to provide your customers with more options.
Consider these suggestions before implementing the pay-per-use model in your company:
- To begin, ensure that your customers are prepared for change.
- Analyze your data and decide which payment option is ideal for you;
- The PPU strategy is most effective for businesses with a well-established client base.
Please contact us if you'd like to discuss any of these trends or how you might adopt them in your own company. We know how to improve businesses. Join our growing network of Softeare as a Service trend-setters by taking the first step!