Introduction
The Software-as-a-Service (SaaS) model first came up in the 1990s. It was a means to downsize software purchases for companies with a limited budget by renting the same functionality from a cloud application.
Since then, SaaS businesses have been on the rise, and they reached their zenith during the early days of the pandemic when most companies shifted to remote working. And today, SaaS has become an increasingly viable choice for enterprises that are aiming for better functionality, versatility, and accessibility in this highly competitive environment.
Statistics reveal that almost 70 percent of corporate apps today are based on the SaaS model, and this number is anticipated to increase to 85% by 2025.
In this blog, we will explore the latest SaaS trends in 2024 that are expected to shape the future of cloud technologies.
Emerging SaaS Trends in 2024
1. Increased focus on security & privacy
One of the leading concerns with cloud computing is data security and privacy. When a business opts for a B2B SaaS solution, they entrust a third-party service provider with their data storage and management. This, in turn, makes their business susceptible to cyberattacks such as malware, hacking, phishing, etc.
To resolve this security concern, SaaS providers must implement powerful security measures to safeguard sensitive business data and restrict unauthorized user access and data breaches.
They can leverage SaaS Security Posture Management (SSPM) tools along with a solid DMARC policy to ensure automated continuous monitoring of SaaS applications and minimize security and configuration issues.
Below is an image showcasing how SSPM tools provide automatic and uninterrupted monitoring of SaaS applications:
2. Integration with AI & ML technologies
Next on the list of B2B SaaS trends is integration with AI and ML technologies, which are quickly becoming a standard SaaS industry fixture.
Talking about AI, it is one of the most important innovative technologies that has taken the tech world by storm. And the SaaS industry is no exception. With AI, SaaS providers can introduce hyper-personalization, and satisfy customer needs in the B2B, B2C, and DTC markets.
Additionally, AI in the SaaS industry can enable:
- High-quality customer support services such as chatbots.
- Leverage ChatGPT for social media content, blogs and more.
- Early detection of security breaches.
- Easier code review and maintenance.
- Quicker and more streamlined user guidance and SaaS onboarding.
Machine Learning (ML), on the other hand, is a subset of AI that can be utilized in SaaS for its incredible learning capabilities and data processing.
Some of the most upcoming use cases of ML in the SaaS industry are:
- Enabling platforms to investigate consumer interests, intent, and behavior. This enables businesses to enhance the value and efficiency of their product.
- Process vast amounts of data and insights to empower companies to make informed business decisions.
- Increase customer engagement.
- Improve internal business collaboration and operations.
- Ensure enhanced data security using pattern recognition functionality.
Some of the best examples of SaaS products using ML include Salesforce and Netflix. Leveraging the power of ML, Netflix provides personalized recommendations to customers while Salesforce detects trends and patterns in customer behavior.
3. Rise of no-code and low-code platforms
No-code and low-code platforms are another one of the leading SaaS marketing trends 2024. Such platforms enable users to quickly build and deploy software applications without the need to write any complex code. Users can simply use a drag-and-drop interface to create intuitive applications within minutes. As per statistics, the low-code industry is expected to reach $187 billion by 2030.
This simple technique to create applications with less or no code makes the platform particularly beneficial for SMEs with limited IT resources. They can deploy software applications and successfully automate tasks such as report generation and data entry.
Low code is becoming a crucial SaaS trend as it saves a lot of development time. Also, it opens up development to thousands of non-coders who wish to get into the SaaS market with implementation and web design best practices.
Lattice is one of the best examples of this whose entire website is built on a no-code environment.
4. More collaboration and communication tools
The growing trend of remote working has amplified the need for SaaS-based solutions that facilitate remote collaboration and communication.
Tools such as web conferencing, video conferencing, instant chat platforms, etc. allow remote teams to team up and communicate in real-time. These tools have become crucial for remote teams to stay connected and boost productivity. For instance, several SaaS-based email automation tools enable employees to create groups in email. This ensures seamless communication between scattered teams.
Even companies that have returned to on-site work will continue to expand their usage of these online tools, having realized their unprecedented benefits during the pandemic.
5. Expansion of vertical SaaS solutions
Another one of the leading SaaS trends in 2024 is Vertical SaaS, also known as industry-specific SaaS. Essentially, it refers to software that is specifically built and tailored for a particular industry or business sector. Unlike Horizontal SaaS which caters to clients across any sector and industry, Vertical SaaS focuses on clients within specific industries and supply chains.
Vertical SaaS products can adapt functionality that matches every client’s precise industry requirements. Thus, these software result in greater flexibility, reduced customer acquisition costs, and better upselling opportunities.
For instance, a telecommunications company can choose a SaaS product that is tailored to streamline Telecom billing. On the other hand, a utility company can choose a SaaS-based utility software solution to automate its workflows and industry processes.
6. Greater adoption of hybrid & multi-cloud architectures
Multi-cloud and hybrid cloud architecture is another one of the B2B SaaS trends that enable businesses to utilize SaaS solutions from multiple vendors and seamlessly integrate them with their existing IT structure. This is a highly useful approach that results in greater flexibility and cost-efficiency.
With a multi-cloud architecture, businesses can integrate SaaS solutions from different cloud vendors into a unified infrastructure. This enables them to optimize their business processes, benefit from unique capabilities, and dodge vendor lock-ins. For instance, businesses can use the multi-cloud approach to distribute their workload across various cloud providers, based on the specific needs of the workload.
On the other hand, hybrid cloud architecture enables businesses to incorporate their existing IT structure into cloud-based SaaS solutions. Thus, businesses can leverage their existing IT setup to boost scalability and cost-efficiency. For example, they can utilize a hybrid cloud for managing their critical workloads on-premises while leveraging SaaS solutions to run non-critical workloads.
7. Expansion of the API economy
The primary aim of SaaS solutions is to simplify and streamline business processes. Thus, it will be counterintuitive to assume that SaaS buyers will opt in for protracted implementation cycles or spend several developer hours in integrations that further slow down time-to-value.
As per estimates, the deployment period which was almost 54 hours a decade ago, has been brought down to 7 hours today, all thanks to Application Programming Interfaces or APIs.
Essentially, API is a combination of tools and protocols for developing software applications. In the context of SaaS, API makes the deployment process much more agile by enabling SaaS providers to integrate their solutions with other platforms or systems easily. Statistics reveal that the API market, which is currently valued at $4.5 billion, will grow and reach $13.7 billion by 2027.
Simple APIs can make new software easily integrable with existing tech stack, thereby making SaaS deployment more fluid and seamless.
8. More emphasis on customer experience and success
With continuous SaaS industry growth, SaaS solution providers are working on a myriad of ways to improve customer experience and boost retention rates.
Unsurprisingly, customers prefer software solutions that are intuitive, easy to use, and meet their precise requirements. Consequently, SaaS companies are trying to simplify their solutions to appeal to their prospective buyers. They are also looking to expand the functionality of their solution in the form of improved personalization, better customer support, more APIs, more ability to customize, etc.
Scribe’s AI automation tool is a brilliant example of one such intuitive SaaS solution. The AI tool automates process documentation. It intuitively creates how-to guides, simplifying complex procedures and empowering users to perform tasks with confidence and ease. Streamline your work with Scribe's intelligent assistance.
Implications of these Trends for SaaS Companies
Transformation towards SaaS and the cloud is inevitable. The rapid SaaS industry growth and advancement in innovative technologies have created massive opportunities for SaaS companies.
However, the future of SaaS is all about the ability to strategically integrate with others and develop valuable partnerships. Interconnectivity is anticipated to be the key to becoming successful. This is not just a challenge but also a big opportunity at the same time.
This will also allow smaller and more agile SaaS companies to compete with the big players. They must focus on addressing a single challenge with one efficient solution rather than trying to be everything to everyone.
Additionally, SaaS companies must prioritize agility and adaptability in this fast-changing landscape and capitalize on the leading SaaS trends to grow their market share.
Conclusion
SaaS is here to stay. The technology will continue to evolve over the coming years, without showing any signs of slowing down anytime soon. Therefore, by understanding these leading SaaS trends and how to capitalize on them, SaaS companies should be able to go from strength to strength.
About the Author
Joy D'Cruz is a content marketing specialist who is currently working with SaSHunt. Joy enjoys researching topics related to B2B and SaaS. On the weekends, he likes spending time watching YouTube.
