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It is crucial to understand and follow the latest trends for enterprise SaaS. Here are the top 10 such trends to follow in 2022.
SaaS (Software as a Service) is an on-demand product distribution strategy that allows software developers to distribute software through the internet and enables users to utilize powerful software without having to deal with hardware management or complex installation processes. Enterprise SaaS allows modern businesses to take advantage of the various advantages of advanced enterprise software and powerful solution functionality.
As digital technology continues to evolve and the amount of data that modern businesses are expected to collect, track and analyze increases significantly, SaaS models can help organizations reduce time spent on data configuration and deployment, facilitate scalable software models, easily install new updates to fix bugs and errors and reduce overall costs associated with maintenance and hardware.
SaaS spending across companies of varying operational sizes is expected to reach a value of $500 billion by the year 2023. Therefore, as businesses continue to implement SaaS models into their product distribution strategies, it is crucial to understand and follow the latest trends for enterprise SaaS.
Developments in AI have completely revolutionized almost every sector of the technological industry. AI not only allows your business to automate various business processes that would have otherwise had to have been performed manually by an organizational employee but will also enable your business to facilitate more informed decision-making processes, reduce the length of research and development cycles, create comprehensive crisis aversion strategies and improve customer experiences.
Companies are expected to have an average of 35 AI projects in place in 2022. Furthermore, integrating AI with enterprise SaaS can enable your business to leverage powerful algorithms to tailor consumer communication, identify common trends in large amounts of collected data and perform more effective risk management.
Due to constantly changing industry standards and specific individual organizational requirements, the need for a comprehensive list of features for each enterprise SaaS is more important than ever before. Therefore, many businesses utilize distributed cloud systems to enable constant updates and efficient distribution.
Over the next year, many businesses will begin to shift towards distributed cloud systems which can help establish a holistic framework and footing for any business strategy without having to take into account geographical restrictions. The global public cloud service industry is expected to reach a market value of approximately $623.3 billion by the year 2023.
Although many businesses may believe that developing on offering extremely complex and advanced solutions may be the way to increase overall organizational profitability, it is actually better to prioritize customer experiences and services. 86% of customers stated that they would be willing to pay more if it means receiving a better customer experience.
Organizations and users usually tend to purchase software products that they find easy to use in the long term. Therefore, your business can facilitate open communication with customers and effectively utilize your enterprise SaaS by offering customization opportunities, simplifying software user interfaces, and providing opportunities for feedback.
As businesses are expected to keep track of larger and larger amounts of data, it is extremely crucial for them to understand how to leverage the power of this data.
Therefore, many enterprise SaaS systems will include software that can automatically perform data analysis for various business functions such as customer service, product management, and business development over the next year.
Furthermore, since many businesses require different types of software for different business processes, it is important to ensure that this software is compatible with each other to facilitate data migration and connection.
Through the course of the pandemic, work from home employment became a necessity to continue organizational operations. However, work from home operations will continue to be an extremely popular choice for enterprise software developers in the next year.
Remote work not only enables enterprise software developers to work from the comfort of their own homes but will also allow them to create significantly more software in less time, which will ultimately increase the overall profitability of your business.
According to McKinsey, 45% of work activities can be automated using existing technology. Therefore, many enterprise SaaS distribution models are beginning to implement automation into software to help automate various organizational tasks that would have otherwise had to have been performed manually by an organizational employee.
Various business functions such as marketing, documentation, payroll, and much more can be performed almost completely autonomously using automation software. Furthermore, automation can help your business analyze large amounts of data and obtain real-time insights to facilitate more informed decision-making processes.
As businesses shift towards online operations and remote employment, digital privacy, security, and encryption are now a larger concern than ever before. Therefore, over the course of the next year, enterprise SaaS solutions will begin to integrate larger amounts of security and digital privacy to safeguard against potential cybersecurity and organizational vulnerabilities such as hacking.
Most businesses have now recognized the need and various advantages of API-centric solutions and will therefore utilize enterprise SaaS that is equipped with an API. APIs have numerous advantages that businesses can take advantage of, such as increased efficiency, automation, cross-departmental collaboration, personalization, and integration.
Studies have shown that 48% of consumers indicated that they had switched companies or software providers due to their data security and data sharing practices and policies.
Due to the rising need for technological solutions in numerous different business functions, many businesses must also take into account the compatibility of various software. Therefore, one of the biggest trends for enterprise SaaS solutions is the rising demand for vertical SaaS solutions that can meet the demands of almost an entire industry while still being compatible and integrated with each other.
Studies have shown that 44% of businesses focus on customer acquisition while only 18% focus on customer retention. However, just a 5% increase in customer retention can nearly double organizational revenue.
Therefore, in 2022 many enterprise SaaS organizations will begin to focus on customer retention over a new prospective lead generation. Even if competitors offer more effective or efficient products, many customers will likely continue to do business with a particular organization due to familiarity and satisfactory customer service initiatives.
With the continuous and exponential development of digital technology and cloud-based solutions, the implementation and adoption of enterprise SaaS in modern organizations are increasing rapidly.
A recent study indicates that the SaaS industry is currently growing at a rate of 18% per year. Furthermore, research shows that nearly 78% of businesses have already invested in SaaS options. Therefore, with the growing interest in enterprise SaaS models, modern organizations must be made aware of the latest trends in the SaaS industry.24
Trends for enterprise SaaS over the course of the next year include:
Snigdha Jena is a customer success manager at SmartKarrot. She has been active in the customer success and SaaS space for a while now. She has worked with Quant LegalTech, Intuit, and RepRecom solutions in various capacities.
Published 18 Jan 2022, Updated 18 Jan 2022
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