Wednesday, February 8, 2023

Trends Shaping the SaaS Industry Outlook in 2022

By Umme Sutarwala - December 23, 2021 4 Mins Read

Software-as-a-Service (SaaS) solutions are now integrated into practically every business workflow. Given their accessibility, cost-effectiveness, agility, and versatility, it’s understandable. However, with SaaS trends leading the charge to disrupt the industry, a lot is about to change.

“2022 will see a massive shift toward SaaS companies working harder to create and sustain a thriving community and benefit from the network effect that a community provides,”


says Lance Walter, CMO at Neo4j. He further adds that as the world becomes increasingly connected, technology creators have come to learn how vital it is to build and maintain a community of users; Reddit co-founder Alexis Ohanian recently predicted that within the next five years, 50% of publicly traded corporations will have a Chief Community Officer. “Every popular technology has a thriving community behind it, and SaaS companies will demonstrate in 2022 that they understand the value of building a self-sustaining community,” adds Lance.

Over the last few years, the SaaS market has seen a significant amount of growth. Much of this has been influenced by a number of trends. While some of these have come and gone without leaving much of an impression, others have remained.

Also Read: Top Strategic Technology Trends for 2022

Inclining towards PaaS

Customer retention is something that any organization will need to work on, while SaaS may not be particularly good at it. As a result, a growing number of businesses are turning to the platform as a service (PaaS) to boost and maintain their retention rates.

PaaS focuses on allowing customers to create or purchase add-ons to the original product they purchased. As a result, SaaS/PaaS providers may deliver a far more personalized approach to their client’s demands, which should help them develop and retain customers.

Incorporation of artificial intelligence (AI)

Artificial intelligence has progressed beyond its infancy. Technology has taken the business world by storm, bringing up previously unimaginable frontiers and upending the way people manage businesses. Notably, AI’s entry into the SaaS battlefield has drawn a lot of attention, and its disruptive forces promise to impact everything from accounting software to customer relationship management (CRM) software.

AI has enormous promise for streamlining business processes, automating redundant work, increasing efficiency and productivity, and boosting human capabilities. Unfortunately, despite IT leaders’ best efforts to develop AI systems, only a small portion of this promise has been realized. The fear of potential risks has been the biggest roadblock, but thankfully, SaaS providers are gradually breaking through.

Also Read: Three FinTech Trends to Watch in 2022

The best part is that, despite its drawbacks, AI remains the most cutting-edge technology in the modern SaaS industry. It’s no wonder, then, that SaaS businesses are removing the barriers that have stifled AI research by laying out a clear roadmap for its implementation in SaaS. In fact, AI has been generating major waves in the SaaS business since 2017, and the trend shows no signs of slowing down anytime soon.

Connections and integrations with SaaS

The main reason why firms deploy and increase API integration is because of SaaS connectivity limitations. Businesses, for example, must now use a variety of software solutions to complete tasks. These solutions, if not well-integrated, generate a heterogeneous IT ecosystem, hampering the supply of high-quality services.

Furthermore, rather than establishing a new IT architecture to suit both, many businesses prefer to blend new technologies with existing on-premise systems. Furthermore, today’s businesses regard data migration as a hot topic. Many people would rather blend their data with their existing IT infrastructure than relocate it to a new cloud.

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Umme Sutarwala

Umme Sutarwala is a Global News Correspondent with OnDot Media. She is a media graduate with 2+ years of experience in content creation and management. Previously, she has worked with MNCs in the E-commerce and Finance domain

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