Known to transform the field of Information Technology, Software as a service (SaaS) makes sense for businesses for various reasons. As SaaS is hosted on the cloud, it becomes easy to access from anywhere in the world. If we see the current SaaS trends then can find, SaaS apps are designed to support customization in the way a company carries on business activities. To reap the numerous benefits from the SaaS solution. It is predicted that point solutions will continue to emerge in order to fill the gaps between sales and marketing continuum.
Cloud services have witnessed tremendous growth in 2015 and they are expected to grow over the course of 2016 as well. Here are some of the projected trends and predictions for SaaS in 2016.
SaaS Trends and Predictions For 2016
1. Micro SaaS Businesses
Top SaaS products are now being used for ultra niche businesses. These micro start-ups are tailoring their products to meet the likes and needs of customers. Major SaaS users will be displaced by niche businesses, which will emerge in many categories (sales, finance, support, etc.). According to latest SaaS trends these small businesses are run on a small and lean business model, and will churn out impressive profits, as customization is the key to earning revenue.
2. Vertical vs Horizontal SaaS
Startups have two approaches to the B2B software; Vertical SaaS and Horizontal SaaS. Vertical SaaS employs software which caters to the needs of a particular industry, such as real estate or agriculture industries. Horizontal SaaS, on the other hand, has its main emphasis on the functional aspect (HR, sales, marketing, etc). As for the trends this year, horizontal SaaS will take a backseat, as it needs to be updated in light of the changing landscape. Industries of the Vertical SaaS, on the contrary, will start adopting SaaS solutions on a larger scale. The key is to copy what worked in other industries and adopt the best practices.
3. An Expected Increase in Data Center Systems
Another area expected to see an increase in 2016 is the spending on data center systems. SaaS trends predicted that there will be a 3% rise in overall data center systems’ spending to USD 75 billion in 2016. The main reason for the high demand is due to the shift to hyperscale computing, and this is expected to rise even higher in the current year.
4. Mass Cloud Migration
The traditional pattern of information storage through hardware is now undergoing a change. Soon, the amount of information stored on the cloud will exceed that stored on hardware. Hence, migrating to the cloud or adoption of a new-cloud based service is a new trend which many businesses are undertaking.
5. Increase in Spending for SaaS
It is predicted that that the spending on software as a service will continue to increase in 2016. There are expectations that it will reach USD 326 billion, a 5.3% increase over the previous year. Lovelock rightly said, ‘Nothing in IT starts without software’. Many traditional applications are now shifting to SaaS, which is an indicator that IT activities are expanding beyond overall IT spending.
It is never late to start preparing for the changes that are coming in the field of Information Technology. There are talks about the increasing use of mobile applications, automation, and standardization, all of which collude with SaaS. More businesses are now using software as a service to differentiate their brands and excite customers with customization, through continuous adoption of infrastructure such as CRM and ERP. 2016 has immense opportunities for SaaS solutions. It’s only a matter of time before businesses realize that cloud storage will show no signs of receding in the years to come.