Since the outbreak of COVID-19 and its ripple effects, the demand for Software as a Service grew inadvertently. According to industry estimates, by 2022 the industry is estimated to have a net worth of US$143.7 billion approximately. This growth is primarily attributable to the cost effective solutions, agility in operations that is driving humongous demand across industries. Yet, there are several other reasons attributable to the exponential growth of SaaS product development. Some of them are

Operational Flexibility

Given the highly tech dynamic business scenario worldwide, every organization needs to utilize a software or automated tools for almost every process. But, digitizing processes on a standalone basis will cost organizations a lot. Moreover, understanding the nuances of utilizing a software for all these processes might also differ. In such a scenario, the use of bespoke SaaS product development solutions will be a boon as it is not only cost effective, but also user-friendly. Therefore, any employee in the organization can get onto any task with SaaS as it is self-explanatory.


With the changing geographical dynamics, scaling operations seemed challenging in several organizations. Whereas, with a SaaS product development module to leverage, scaling operations would not be challenging as SaaS allows capacity expansion with ease. Moreover, the service can be customized as per the client’s requirement. For example, a SaaS development company might have features relevant to a Logistics as well as a Manufacturing company. In certain cases, the functionalities relevant to logistics service providers might not be relevant to a manufacturer. Therefore, both entities can avail the features specific to their business. 

Increased Collaboration

In a large cap or a midcap company, collaboration among teams might be challenging as each have separate goals, processes and milestones. A unified platform to connect all of them in one frame has always been the need and SaaS seamlessly bought them together without much effort. In certain SaaS applications, rather than static document exchange there is data interchange which would involve Artificial Intelligence and Machine Learning to capture relevant data.

Secured Access

As the amount of tech dependence rose, there is an increased threat of phishing attacks too. Now organizations are keen on safeguarding their information and ensuring they don’t become prey to cyber-attacks. While some entities are focusing on using standalone ERP tools to safeguard their internal data, the question of humongous expense pops-up. In such a case, SaaS is the go-to solution as it not only offers secured control of data with the robust cyber security principles. SaaS applications of these days are more developed on robust technologies such as Blockchain, Artificial
Intelligence/Machine Learning to name a few. With this strong technical attribution, there is no question of phishing attacks.

Well, these robust benefits have pushed the demand for SaaS product development applications over the days and even now it continues to do so. We see an increased dependence on SaaS frameworks in the recent past. This increased dependence is now pushing for certain trends that are considered beyond dynamic and is expected to transform the SaaS service provider’s scope of performance immensely. Here are the path breaking trends

Vertical SaaS

So far SaaS has been much broader and was catering to industries and sectors on a broad level. This model was referred to as horizontal. Whereas now, the dynamics of every industry is changing. The operations are now far more specific to processes as well as functionalities and this calls for a transformation and that is named as Vertical SaaS. Under Vertical SaaS, industry specific and client specific data can be leveraged to offer cutting edge tools that could offer synergistic solutions. Moreover, it is believed that in due course it will lead to improved governance of data.

Growing Need for API Connections

Application Programming Interface (API) is not a new term to reckon at. All are aware that it has been a fundamental part of software development all these years. Now the need to integrate them into an existing business system is arising rapidly. Many are already migrating all data to a cloud platform. This means there is a 360 degree integration taking place with API connections and now their go-to market is shorter and will enable them to focus on core capabilities to develop differentiated functionality.

Pricing Policy Change

As an industry soars, so does the need for regulatory and policy frameworks. While in several instances the pricing model has been flexible, in other places, the model fluctuates deeply. A study by PWC says it is difficult to upgrade freemium and trial accounts. This calls for a regulatory framework in the industry i.e. Pricing Policy Change. A unified pricing system which is flexible as well as affordable for the both the vendors and the clients need to be achieved.


While Vertical SaaS focuses on going industry specific, Micro-SaaS goes even more deeper by offering business intelligence based on functionalities. By developing a framework which is specific to one process, the SaaS experts are eyeing to build a host of value added services which will rather be useful for several stakeholders involved in the process. At the same time, this value added services will be the right alternative to the existing ERP systems which are rather holistic in nature. A report suggests that 85 percent of small businesses are largely investing on SaaS product development solutions.

While the pandemic continues to cost several lives worldwide, growth of the SaaS industry is soaring beyond limits. Moreover, the demand is now more exponential which is encouraging seamless opportunities in the industry. Some of these trends are already ongoing and others are falling in line. In our next blog, let us discuss on the importance of PaaS Migration.

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