Top 5 SaaS Trends in 2021 and their Impact on Businesses

Meta Description: Software as a Service SaaS is a part of cloud computing that is undergoing a lot of trends to make it appropriate for today’s user demands.

Software as a service is a delivery model in which software is licensed on a subscription basis.  It is undergoing various trends in 2021 that would add up in its work capacities for businesses. Annual SaaS revenues exceeded $100 billion in 2020, an average growth of 39% over a 10 year period.

The users making use of the internet services like cloud etc are using SaaS whether they are aware of the concept or not. Remember when computers had a disc drive and installing new software meant a trip to Office Max? Well, that is not the case anymore and the reason behind deriving free laptops is basically SaaS.


SaaS (software as a service) is part or component of cloud computing. The fact that software is provided by the cloud provider, maintenance, and up-gradation of it does not remain a headache for businesses. SaaS is gradually taking over the market of cloud computing. Gartner forecasts that the service-supported cloud application industry will be expected to reach $143.7 billion by 2022, i.e. the level of growth that will shape software as a service trend in 2021. 

The SaaS industry is becoming huge over the past few years. A variety of trends have a strong impact on much of it. Some trends have come and gone while a few others have influenced the industry permanently. 

SaaS Solution business owner has to make these trends a part of their strategy to take full advantage of them. Each trend touches a different point on the influential scale but it is a fact that every one of them is constructively leading the industry ahead.


SaaS Trends to Follow in 2021 

  1. The need For API Integration 

The Application Programming Interface (API) is the primary need for the development of software for years, it is now considered becoming a part of SaaS as well. With the explosion of SaaS and its adoption by the vendors, businesses felt a need to make it part of the existing system. Some organizations want to transfer all their data to cloud platforms, while others wish it to become part of their existing infrastructure to improve it and that is where the problem arises. 


SaaS did not come with a thorough integration process. That makes the work complicated and in return, the loss of customers becomes the fate of the merchants. Therefore, SaaS users would redirect their client to a third party to provide the needed application programming interface APIs enabling the customers to integrate cloud software into their already existing system.

It indeed ended up being good for SaaS developers to not reinvent the wheel, rather relying on a third party will save them time and resources. They can focus on their core capabilities to craft different functionality.


Many SaaS providers do not agree on taking the services of a third party rather they prefer to facilitate clients with enhanced integrated capabilities. However, if they ever want to take cloud vendor’s services they must ensure the following questions beforehand to confirm a seamless integration: 

  • Is my data secured while the integration process works?

  • What services does the provider offer me to integrate SaaS within my existing system?


  1. Incorporation of AI 

Very few people knew how to make artificial intelligence useful during its infancy. It is now being used in a lot of industries in recent years. Its use has been extended to SaaS, which is deploying it in various development and application methods. 

Much of the use of artificial intelligence is seen in automating the core functions of software as a service. Machine learning is also being integrated to boost the work operation for businesses to monitor and enhance SaaS solutions.


  1. Vertical Specific Applications

The third prediction for SaaS trends in 2021 is vertical-specific applications. Where horizontal SaaS focuses on clients from any sector or industry, vertical SaaS is all about targeting clients within certain industries. Some examples are logistics analysis and healthcare analytics. Companies that are planning on providing industry-specific services are admiring vertical SaaS a lot.

Vertical SaaS facilitators also possess the ability to adapt features according to clients’ demands and industry. Therefore they effectively address the customer requirements within their niche. This results in providing a lot of benefits from flexibility to minimum client acquisition costs. Vertical SaaS also provides functions like business value, improved data governance, a high standard, and customer intelligence. 


  1. Unbundling 

In a conventional setup, SaaS services come in a bundle, with clients choosing and picking what they need once they have paid for it. For a number of customers, this has been a total waste especially when we talk about value.  

After careful analysis of the situation, now the SaaS organizations have started unbundling their services into their core functions. By practicing this, they are able to provide their customers with core services along with a number of other optional extras. This strategy is something that is advantageous for both the companies associated as it requires low cost and fewer resources and ultimately leading to more value. 


  1. Mobile Optimization

In this mobile-driven generation, now everyone is free from the boundaries of time and geological hindrances, which means individuals are productive 24/7 and 365 days of the year. 

Moreover, companies nowadays feel relaxed while performing critical operations for their businesses through tablets and smartphones. Employees also feel comfortable when they are given appropriate applications workable for mobile dashboards.

A number of software-as-a-service merchants that adopted mobile versions last year are now taking action to increase the adoption rate. The reason behind this acceleration is the enduring threat of Covid-19. In short, mobile SaaS applications have become the new trend in 2021 for all the software as a service provider. 


The Future with SaaS 

There was a time when businesses would adopt less efficient ways and still become successful. But as modern time requires modern solutions, now companies need services like SaaS to optimize their workflow according to customer needs. Firms are opting for cloud-based applications to better serve their clients. 

SaaS trends are going to be extremely convenient and affordable in the coming years. They are perfectly catered to clients’ needs. For example, many businesses are now practicing kyc verification methods to mitigate online fraud. To make such advanced technologies a part of their system, businesses must adopt SaaS solutions as early as possible.


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