Software as a Service (SaaS) revenue is estimated to reach $212.2 billion in 2022 and grow at an annual rate of 9.1% during the next five years. The average number of SaaS applications has been spread since 2015 and used by organizations far and wide. Adobe Creative Cloud, Netflix, Figma, and Zoom are just a few examples of demand that are taking over more and more of our digital routine. The goal of many tech startup founders is to create a successful product. In its way, “success” means:
- attracting new customers and rapidly scaling the product;
- creating a predictable and usable income stream;
- cost reduction.
To consider creating an application, you need to pay attention to trends in SaaS. They are motivating because you are faced with the following tasks. The perfect combination for a successful next-level product release is limitless scalability, subscription-based revenue, and low distribution costs thanks to the cloud.
Leveraging Artificial Intelligence
- AI is trending everywhere, and it is also relevant for SaaS. According to a Gartner survey, about 40% of companies are ready to implement this technology into their workflow in 2021, along with the cloud AI growth is forecasted to be five times higher in 2023 than in 2019. Some see the technology as unsustainable as it is still innovative. Nevertheless, it is one of the most popular cloud platform optimization solutions. AI in SaaS enhances the security of digital user identities. In addition, you can detect malfunctions, data leaks, and deception and even prevent cyber attacks. This marketing trend Saas worth it!
Growth in the Number of Micro-SaaS
Complementing the larger SaaS platforms is Micro-SaaS. Similar products can be seen almost everywhere: on retail platforms (like Amazon Assistant), and in grammar-checking apps (Grammarly for Google Docs and MS). Some of them are presented as browser extensions.
Using Vertical SaaS
The vertical type of SaaS has many chances to interest the target audience with the unique features of the application. Such as focusing on a specific market segment, which ensures that the interface is customized to the needs of customers. The horizontal SaaS market is crowded with competitors, making it difficult to fit into the market. According to a June 2019 Crunchbase report, there are over 15,500 SaaS companies in the world. About 60% of them are horizontal SaaS.
A mobile-first approach
- According to CNBC, in 2022, 72.6% of people will use smartphones to communicate, work and surf. Therefore, this trend has the most understandable reasons for its existence.
Low-Code and No-Code Popularity
- Low-code is the trend of the Saas industry. This development environment brings expensive, error-prone application development layers to a near-complete state. As a result, developers get the application logic and user experience solely on business innovations. With the help of the trend, applications range from the simplest mobile applications to the most complex enterprise systems. It is a great solution for developers with different skill levels as they can use their unique code and visual drag and drop system building functionality at the same time.
Migration To PaaS
By moving to the cloud, companies enjoy the most advanced infrastructure and operational services, such as database, backup, recovery, storage, monitoring, VPN and security. Seamless migration is guaranteed whether you choose a private cloud from DATAGROUP’s data center or a public cloud provider.
Feature Marketing Popularity
- Practically, SaaS content marketing allows you to target new keywords, improve SEO, and provide opportunities to acquire new customers. By means of functional marketing, you can turn your free users into paying customers, retain your existing ones, and increase your overall revenue. SaaS startups create tools or plugins that go along with the main SaaS product and improve its features.
Focus on reducing churn
- Companies spend 5-25 times more on customer acquisition than on retaining existing ones, decreasing churn is a top priority for any SaaS manager interested in creating lifelong evangelists for their brand. It’s about adding value to your customers’ lives. Your company’s development will improve if you focus on churn, leveling it off will make a difference in the lives of your customers.
SaaS Connections and Integrations
One of the latest SaaS trends is integration. Integration also follows the list of trends, including connecting a SaaS application to another cloud application or on-premises software via application programming interfaces. The main reasons for implementing integration:
- It provides transparency;
- It saves your team a significant amount of time;
- It improves the employee and customer experience.
Once connected, the application is free to query and exchange data with another application or the local system.
- The latest trend in the SaaS industry is that white label products are designed to be unbranded when sold to clients. Customers can then add their branding for further resale to their consumers. Advantage is that it does not require companies to invest heavily in it from the beginning. It is extremely attractive for small businesses. Some other merchandising verticals that may use white label SaaS products include:
- Online pharmacies;
- City delivery services;
- Taxi service;
- Beauty salon and personal care services at home;
- Grocery Delivery Applications.
If your occupation doesn’t have the technical skills or resources but can sell a product, then White Label software is a significant chance for you!
Tips on building a web app on AWS
A modern SaaS application is much more than a collection of cool features. It must meet a number of critical non-functional requirements. With an AWS Web Application, the SaaS approach is the right choice for startups. Here are some good job tips for startups building an application on AWS:
- Make the right choice of AWS services;
- Estimate all the costs;
- Prepare a disaster recovery configuration;
- Build an app monitoring strategy.
If you are still wondering “Do I need AWS for application development?” you should pay attention that AWS has a 33% share of the cloud infrastructure market, which is more than the share of the two closest competitors, Azure and Google Cloud, combined. Wind more at https://www.romexsoft.com/blog/how-to-build-a-modern-saas-application-based-on-aws-a-definitive-guide-for-startup-founders/