The present market is full of some exciting SaaS companies that have built up at least $100M revenue and many amongst them are ready to take the next leap. The 7 trends for SaaS 2020 could be listed as:
- Artificial Intelligence:
The customers have started expecting many features and responses that AI is able to deliver. With an AI algorithm using the most advanced neural network for anomaly detection, and a machine-learning algorithm for pattern recognition, these data alerts learn from trends and patterns and let you know as soon as something important happens. AI also helps to deliver personalised services with improved security features and actually throws the challenge of replacing humans.
- Industry-specific SaaS
There will SaaS modules targeted to specific verticals like say healthcare, retail, logistics, etc. Industry-specific SaaS will be able to address vertical specific challenges and will be addressing all the pain areas of a particular vertical
- API interface
Most of the SaaS modules in the market need to have an integration with 3rd party apps. This will be critical, where different apps talk to each other and this also means that the customer if he is comfortable with a certain app, need not migrate to other apps. In fact, by providing an interface it will actually help them to capitalize on their existing investment
- Migration to PaaS
The industry will evolve from Software as a Service to ‘Platform as a Service’ . You have already started seeing its impact on certain market offerings like SalesForce. The edge that PaaS brings over SaaS is that it not only improves the agility to improve focus on the business but also improves you to scale your business with security. They help businesses to build custom apps as add-ons to their original services.
- Open the bundle
Traditionally Software businesses were trying to offer all the modules in one product, but as the needs are getting complex, businesses are going to use ‘Open the bundle’ module where Software Companies are beginning to realize that not all of the functionality on their platforms suits every prospective client or customer – so offer customers application programming interface rather than providing full-fledged platform
- Mobile First
By 2022 it is expected that nearly 75% of internet usage will be through mobile phones. Earlier mobile was the last interface, but now everything has to be a mobile-first approach and all the offerings have to mobile-friendly in terms of UI and UX and security features.
- Invest in branding
With many players offering similar products in space, A few years ago, industry experts never thought about branding for SaaS success, largely due to the fact that offering software and niche solution was the game, but the future SaaS will call for investing in branding.
You might be thinking, why we are discussing this now?
India is full of SaaS companies but as investors very few have got the exits. If we are able to capitalize on the trends we will hit the jackpot!!