SaaS is taking over the cloud computing market. Gartner predicts that the service-based cloud application industry will be worth $143.7 billion by 2022—a level of growth that will shape SaaS trends in 2020.
SaaS is a software distribution model that offers a lot of agility and cost-effectiveness for companies, which is why it’s such a reliable option for numerous business models and industries. It’s also popular amongst businesses for its simplicity and user accessibility, security, and the widespread connectivity that serves to streamline business models, resulting in maximum efficiency across the board. Today, most companies are in the process of implementing various business intelligence strategies, turning to SaaS BI tools to assist them in their efforts.
2019 was a breakthrough year for the SaaS world in many ways. With a new year on the horizon, in this article, we’ll explore 10 essential SaaS trends that will stand out in 2020. But, before we do that, we will discuss the general characteristics revolving around the industry that will help put additional light on the SaaS industry trends for 2020.
Dispelling 3 Common SaaS Myths
To offer you a full and panoramic understanding of the impact software as a service is having on the professional world, here we will dispel the 3 most common SaaS myths – consider them busted:
- SaaS tools offer just one application: On the contrary, SaaS tools range in form and function as much as any other type of software available today, so you can build a SaaS dashboardtool or use a SaaS based Email marketing solution, for example. In fact, Computer World’s official directory of SaaS providers now lists more than 950 companies that offer SaaS across a multitude of different industries.
- SaaS is less robust and less secure than on-premises applications: Despite some SaaS-based teething problems or technical issues reported by the likes of Google, these occurrences are incredibly rare with software as a service application – and there hasn’t been one major compromise of a SaaS operation documented to date.
- IT professionals are anti-SaaS: Again, this is a complete myth and like any disruptive development worth its salt, some IT professionals are reluctant to embrace SaaS as a concept, there is a large number of industry experts that recognize SaaS for ridding them of the day-to-day humdrum of traditional software, while helping them better manage their own IT operations. This quote from Apple’s prolific founder, Steve Jobs, sums up the common view of SaaS from a technical professional’s perspective: “I don’t need a hard disk in my computer if I can get to the server faster…carrying around these non-connected computers is byzantine by comparison.”
SaaS: The Key Characteristics
Before we explore our essential software as a service trends for 2020, it’s important to consider what defines SaaS as not only a technological development, but as a working business model.
- Flexible payment options:Businesses don’t have to go through the expense of purchasing software and hardware. Instead, they have the option of utilizing various pricing structures. Flexibility in payment models, where they only pay for the resource usage they need, for instance, is attractive for many organizations in today’s competitive world.
- Scalability: Cloud-based SaaS enables businesses to expand with ease due to its inherent scalability. Companies can be selective about the types of features and options they want.
- Updates:SaaS providers handle the necessary software updates and develop new features over time, so businesses don’t have to invest ample amounts of time in this particular area of operation.
- Accessibility:With SaaS, businesses have the mobility of accessing applications from any digital device and location, making it especially convenient for mobile platforms. Additionally, it boasts ease-of-use and is user-friendly.
- Increased collaboration: SaaS developments enhance a business’s ability to promote collaboration across teams and departments due to the facilitation of file sharing, in addition to a distinct ease of reading and understanding across systems.
- Security:Most SaaS models are known for their enterprise-level security, which is a more holistic approach to security than many centralized, on-premise solutions. In Cloud SaaS, pre-existing disaster recovery protocols are in place to manage potential system failures. This means that your business’s data is available and secure regardless of a data breach or system failure.
As businesses continue to rely on innovative data discovery tools and technologies to increase both their productivity and their efficiency, and as new software as a service trends continue to emerge, this young, groundbreaking industry can only go from strength to strength.
Even if figures diverge somewhat, the many forecasts conducted on SaaS industry trends 2020 demonstrate an obvious reality: the SaaS market is going to get bigger and bigger. Indeed, according to Bloomberg, public cloud platforms, business services, and applications (SaaS) will all grow at a 9% CAGR (Compound Annual Growth Rate) between 2019 and 2023, and worth $60.36 billion. A Betterbuys report reveals that the specific expenditure in the U.S. SaaS Industry is forecasted to reach $55 billion by 2026. And according to Gartner, the global public cloud service market is projected to grow significantly in 2020 and beyond.
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