SaaS offers flexibility, convenience and cost-effectiveness for companies. It is a solution well suited to the needs of the current hybrid workplace.
- Gartner estimates that the market will reach $397.5 Billion by the end of 2022.
- As per BMC, 99% of organizations use SaaS applications, and almost 78% of small businesses have invested in SaaS solutions.
In this scenario, for any SaaS development company to stay competitive, it must relentlessly pursue innovation, delivery and resource optimization, and a short feedback loop to offer maximum value to customers.
Let’s assess the growth and value that SaaS application development will bringin.
Why is SaaS growing?
Customers are increasingly gravitating towards the subscription-based pricing model and seeking the services of a specialized SaaS development company.
The statistics below are indicative of the growing popularity of SaaS.
- 70% of CIOs favour cloud-based SaaS because of the agility and scalability it offers. (Deloitte)
- 38% of companies take to cloud-based systems for disaster recovery. (SWZD)
So, how does SaaS offer higher strategic value?
- Flexible pay as use model allows business to curtail their expenses on purchasing software and hardware.
- Scalable and Adaptable: Cloud-based SaaS empowers businesses with their inherent scalability feature, allowing them to adapt to business changes.
- Regular updates: SaaS providers will handle software upgrades and maintenance so businesses do not need to waste time and resources.
- Accessible and User friendly: SaaS allows access from any digital device and location
What are the focus areas in SaaS Application Development in 2022?
As the industry grows and evolves, there are some key SaaS trends to look out for in 2022.
- Artificial Intelligence and Machine Learning:
- An estimate by SEMrush, forecasts the global AI market to be a whopping $190.61 billion by 2025.
SaaS combined with AI and ML capabilities, will empower businesses to derive more value from data, automate and personalize services, improve security, and supplement human capacity.
Forbes has predicted that the investment and value in analytics-centric SaaS models will see an increase by 23.3% by 2022.
In 2022, and beyond, analytics will strongly influence service-based software’s, allowing companies to derive better business intelligence and make impactful data-driven decisions.
Vertical SaaS applications offer a high business value. It offers flexibility, more upselling and personalization, and lower customer acquisition costs. Some examples are healthcare analytics software, retail analytics, or modern logistics analytics.
As SaaS adoption rapidly increases, the need for SaaS integration into the present business ecosystem is dominant.
No-code and low-code
This is a trend that is quite likely to be at the forefront in the SaaS Application Development space.
- Blockchain and Saas
- Markets and Markets states that the Blockchain market will reach $67.4 billion by 2026.
The state of the SaaS application development market in 2022 is an extremely promising one and companies are increasingly making innovation and growth through SaaS a priority in 2022.