Trends That Affected SaaS Industry in Past Few Years
The global SaaS industry is experiencing significant growth, with new players entering the arena every day. With the introduction of new technology, innovative business models and a better understanding of consumer behaviour, new players are entering the market at a dizzying rate. It is hard for existing players to keep up with the pace and guide the market according to their own needs. However, with some insightful moves and room for manoeuvring, various players can still emerge as major players in the long-term landscape. This article explores some key areas that shape the global software as a service industry.
As innovation continues to drive SaaS industry growth, the dynamic between customer and merchant grows throughout the life of a company. Merchant is changed from information provided to customer management. The SaaS industry was estimated to generate an estimated $9 trillion in revenue by 2020 and will reach $13 trillion by 2025, an increase of 130 per cent from 2014 to 2025, according to a new report by International Data Corporation (IDC). While the global software market has traditionally been dominated by North America and Europe, with a few Asian countries reporting sizeable software market sizes, new market leaders are emerging from Japan, India and South Korea.
Changes in Messaging Industry
In the last two years, there has been an explosion in the messaging apps industry and with it a leap in the maturity of the user base. This boom period comes with significant risks, including a shift from being mainly about the platform to service delivery and increased consolidation among leading players. The market is now ripe for new players with more focused approaches to drive long-term growth–besides the capital needed to get started. As more companies use messaging apps, it’s important to understand the benefits of traditional communications platforms and how messaging apps can be better used. These apps allowed companies to reach potential customers who might not otherwise know about a company’s services or products. These companies can now use these platforms to communicate with potential and current customers, and bring them into focus or keep them engaged with information that can help improve their experience.
2016 was a remarkable year for the mobile SaaS as app downloads were twofold in contrast to 2015, reaching over 1.2 billion downloads. The growth was possible owing to the increase in the number of users spending frequent, short-term money on apps. This has created an opportunity for SaaS companies to embrace a new set of customers that may not have otherwise considered software SaaS solutions.
The modern customer is mobile-first and SaaS second. 92 per cent of customers currently make purchases on mobile devices. That number will continue to grow as more organizations realize the benefits of mobile-first revenue offerings. The SaaS technology stack allows for organizations to offer their products or services on mobile devices and their desktops and laptops. These flexible offerings help organizations offer their services or products to their customers in the most efficient way possible.
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Artificial Intelligence and Automation
Evolution in automation and intelligence changed the SaaS industry a lot. Devices with automation help us use them efficiently and easily. Almost all devices, including modern smartphones, are coming with some type of smart assistant which shows how revolutionary this artificial intelligence is. The SaaS industry also changed so much because of this automation. Many brands now use chat bots (which are some AI robots) as chat support and query management. Very basic apps are coming with these features. This basic automation doesn’t need so much knowledge and training. People making it aren’t so much professionalised in making them. However, major players in this industry do proper research and introduce additional features from time to time.
Separation of the SaaS
The SaaS industry is normally seen as providing important software to the needed people. Scattering in this industry made a great revolution. Brands are launching different applications for related work. Just five years ago, a single application was for photo editing, sharing and learning-related skills. These big brands now focus more on giving separate tools for everything. Some brands launched spreadsheets, add-ons and plug-ins to unbundle the SaaS. This separation provided convenience and allowed customers to use any application which is of their usage.
Micro SaaS Businesses
Businesses led by a short team are called micro-scale businesses. These businesses are sole proprietorship based businesses. These businesses are increasingly in the SaaS industry in the last three-four years. Micro SaaS businesses do not have so many employees or a huge infrastructure with them. They assure their clients of proper service and continuous support.