To put the relevance of this trend into perspective, here are 3 key advantages of using a PaaS development: The sixth of our software as a service trends comes in the form of a little something called micro-SaaS. The application would be run by the client and the server ran the database. If you’re looking to improve your data analytics processes, in particular, unbundling is unlikely to be the answer. Mid-Market (AKA MM), defined as a company with 101-1000 employees, and Enterprise, defined as having 1,000+ employees; The 3 Biggest SaaS Trends in 2020 Overall Trends in SaaS Spend and Usage. As the organization grows and the number of teams increase, users working on different projects may have their own requirement for the SaaS tools. In terms of revenue: The SaaS growth rate—how quickly it is growing—is beginning to slow, however. That is $20 billion more than Gartner estimates for just a year ago, in 2019. Though global IT spending might be down as businesses and economies suffer, cloud growth is the bright spot, with cloud spending expected to rise 6.3% year over year. SaaStock brings together the brightest minds in SaaS – so where better to pick their brains about the SaaS trends we should know about for the new year. With a new year on the horizon, in this article, we’ll explore 10 essential SaaS trends that will stand out in 2020. This results in more flexibility and upselling opportunities, and lower customer acquisition costs. For this reason, we compiled several SaaS trends to prepare you for the curveballs that the industry might throw at your business. SaaS growth rates, IPOs, and acquisitions all indicate this trend is not ending anytime soon. Both vertical and micro SaaS businesses are set to proliferate this year, and we will see developments in how SaaS companies look to competitively price their services. That said, in 2020, we expect to see SaaS migrating towards the realms of PaaS (platform as a service) – developments that empower businesses to build custom apps as add-ons to their original services. Today, Software-as-a-Service (SaaS) solutions are part of nearly every business workflow. Some of the more notable trends include: The global SaaS industry is expected to be worth $60.36 billion by 2023, an increase of 9% in the next four years. In response to a new, more cutthroat climate, we expect to see more micro-SaaS innovations emerge from the woodwork this coming year. Vertical SaaS providers also have the ability to adapt features according to client demand and industry, and effectively address customer needs within their niche. In turn, this will make software as a service even more widely accessible while offering businesses a wealth of new information about the industry, making it all the more transparent as a result. 2020 SaaS Industry Market Report: Key Global Trends & Growth Forecasts Last year, 2019, we witnessed many key developments in the SaaS industry. Stiffer competition, industry saturation, and the rapid development of SaaS platforms (improved features and functionality) mean that software as service players of all shapes and sizes are starting to reinvent their pricing models according to the needs of their clients or customers. The unrivaled power and potential of executive dashboards, metrics and reporting explained. Vertical SaaS also provides the following benefits: The API (Application Programming Interface) has been a fundamental part of software development for years, and this is precisely what our third SaaS trend focuses on. If you are looking to invest in a cloud vendor’s services, you should ask the following questions beforehand to ensure a seamless integration: One of the most effective ways to serve the needs of your target audience is through equal measures of inspiration and education – and as more SaaS providers tap into this mentality, we expect thought leadership will become a prominent software as a service trend in 2020. From core to cloud to edge, BMC delivers the software and services that enable nearly 10,000 global customers, including 84% of the Forbes Global 100, to thrive in their ongoing evolution to an Autonomous Digital Enterprise. This demand for subscription-based pricing model, however, is spurring legacy companies to rapidly migrate their software solutions to a SaaS consumption model. We work with a lot of SaaS companies and we’ve used our insight and experience to share some of the main industry trends. Most traditional software as a service platforms are considered horizontal, offering every single feature or function imaginable in one single tool. Every business—depending on its size, sector, and culture—has a specific set of needs, which means that today’s vendors are beginning to realize that not all of the functionality on their platforms suits every prospective client or customer. Excitement has been high owing to the introduction of newer technology in SaaS. We can also look at SaaS success in terms of the companies that make those products. It was indeed better for the SaaS developers not to reinvent the wheel, and to win some precious time and resources relying on third-party APIs. When looking for a potential SaaS service, value for money is best represented in a service that will meet your needs on a sustainable basis. There will be more portable platforms available to your company’s disposal than ever before — don’t miss out. 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. By reviewing every aspect of platform pricing, a host of companies across niches have grown their audience, connecting with a broader demographic of consumers. Why the Vertical SaaS trends are going to have such an impact in 2020? So what does the future of SaaS look like? If you’re ready to embrace the future of SaaS and experience your own data-driven software as a service solution, try our 14-day trial completely free and push the boundaries of your business in ways that you never before thought possible. By working with the right set of marketing KPIs and using your consumer metrics to your advantage, you’ll be able to secure yourself a bright, prosperous SaaS future. But, as user needs become more complex, and the industry continues to evolve, platform unbundling is likely to become all the more prevalent. 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. Use of this site signifies your acceptance of BMC’s, Infrastructure as a Service (IaaS) and Platform as a Service (PaaS), Cloud Revenue & Market Share Trends in 2020, 5 Practices for Controlling Costs as You Move to SaaS, Hybrid Cloud Security: Challenges and Best Practices, Getting Started With a Multi-Cloud Strategy, Simplifying and Scaling Data Pipelines in the Cloud, The Benefits of Consolidating Monitoring in a Multiclient, Multitenant Outsourced Environment, Homogeneous vs. Heterogeneous Clouds: How to Choose Your Hybrid Cloud. SaaS acquisitions feels as if they’re happening daily, as bigger companies look for the next big SaaS thing. Please let us know by emailing By 2020, SaaS subscriptions will have nearly doubled from 2018. But, with SaaS trends taking the lead in disrupting the industry, a lot is set to change. Gartner estimates that SaaS will continue to maintain its dominance. The world of SaaS is constantly changing, so we want to know: what are the key SaaS trends we should expect to see in 2020? These postings are my own and do not necessarily represent BMC's position, strategies, or opinion. In January 2020, the 10 largest publicly owned SaaS companies, per market cap, were: A common misconception is counting Microsoft and Oracle among SaaS. Thanks to their ease and affordability, Gartner anticipates that SaaS solutions will generate revenue close to $105 billion in 2020 alone. SaaS is notoriously a low-margin business. Marketing Trends 2020: A Significant Opportunity. AI optimizes business processes, increasing productivity and efficiency while automating repetitive tasks and supporting human capabilities. SaaS shows no signs of decline, with even the poorest SaaS segment seeing a CAGR of 19.7% through 2019. As per the SaaS market research, the rising utilization of smartphones, tablets, and laptops, followed by the accelerating adoption of public and hybrid cloud, are the two major factors that are contributing to the market growth during the forecast period. Also, as we move towards a new year, increasing numbers of software as a service vendors will develop new solutions to meet this growing demand. Since it is often easy to lose track of what really matters when so many KPIs have to be monitored, an online reporting tool will safely keep an eye on your data and anticipate any fluctuation and change – and alert you when it veers off course. As we look ahead to SaaS marketing trends in 2020, there are significant opportunities for agile companies. Enterprise SaaS Market Trend Analysis and Major Factors Forecast Report till 2025 Market Study Report Date: 2020-11-28 Technology Product ID: 2491085 The recent study report on Enterprise SaaS market aims to provide an end-to-end analysis of this industry vertical with respect to drivers, challenges, opportunities that will influence the business growth in coming years. - Learning how SaaS delivers business outcomes. The revolution is here, and it’s digital. Some sociological forecasts prove this fact. SaaS, particularly in the small to mid-market, has continued its winning streak and the trends mentioned here should continue to invigorate the space—not just in 2020 but for years to come. Ultimately, though SaaS might begin to slow this year, geo-economics may reverse that slowdown. This Global Software as a Service (SaaS) Market analysis provides a overview of existing market trends, factors, restraints, and metrics and also gives a viewpoint for key segments. We are in the midst of a portable age, and as more innovative software developers wise up, the mobile-first mindset will serve to shape the future of SaaS. The software-as-a-service (SaaS) market is expected to surpass USD 220 billion by 2022, registering a CAGR of 13.1%. By the end of 2017, every SaaS startup faced competition from nine other firms competing in the same SaaS market segment. Last but certainly not least on our SaaS market trends, product branding is set to explode in 2020. Today, most companies are in the process of implementing various business intelligence strategies, turning to SaaS BI tools to assist them in their efforts. ©Copyright 2005-2020 BMC Software, Inc. But in a seismic industry shift, software-centric businesses have been forced to remold their pricing policies. Compared to 2018, Blissfully found that overall spend per company on SaaS products is up 50%, which is impressive. PaaS offerings are, by their very nature, robust, flexible, and accessible which means you will be able to scale your business more easily by using a platform as a service. Tooling-focused product development methodologies such as Agile and DevOps. By Sandra Durcevic in News, Dec 11th 2019. 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. In 2022, SaaS will generate close to $141 billion. 2019 was a breakthrough year for the SaaS world in many ways. These more niche, more “miniature” SaaS offerings could prove increasingly valuable to businesses across industries in 2020, which means we can all expect a host of fresh micro-SaaS innovations over the next 12 or so months. “Dreamers are mocked as impractical. The growth is driven both by internal requirements attributed to: The proportionality of SaaS adoption to workforce size is attributed to several factors: Customers are increasingly adopting the subscription-based pricing model to satisfy growing IT needs—despite limited IT budgets particularly for SMBs and startups. Among cloud options, the outlook for SaaS is arguably the brightest. Though full of potential and promise, this fast-expanding industry has become more competitive than ever. 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. Some examples are healthcare analytics software, retail analytics, or modern logistics analytics. There are numerous features developed by modern software providers based on artificial intelligence such as data alerts. In addition to exploring pricing policy, product model, and mobile-optimization, expanding your branding must become a top priority for 2020. Security is a distinct advantage of the PaaS model as the vast majority of such developments perform a host of automatic updates on a regular basis. Here are the 8 biggest SaaS trends of 2020. With the explosion of SaaS solutions and adoption by the market, the need to integrate them into an existing business system appeared. Managing Partners: Martin Blumenau, Jakob Rehermann | Trade Register: Berlin-Charlottenburg HRB 144962 B | Tax Identification Number: DE 28 552 2148, News, Insights and Advice for Getting your Data in Shape, BI Blog | Data Visualization & Analytics Blog | datapine, Top 10 IT & Technology Buzzwords You Won’t Be Able To Avoid In 2021, Top 10 Analytics And Business Intelligence Trends For 2021, Utilize The Effectiveness Of Professional Executive Dashboards & Reports. 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