Popular Trends that are Shaping the SaaS Industry in 2017

Popular Trends that are Shaping the SaaS Industry in 2017

SaaS applications are revolutionizing the business environment. They offer many advantages such as low upfront costs, anytime, anywhere access, and automatic updates and upgrades. Any popular B2B directory will list thousands of reliable solutions that can benefit all kinds of businesses and workflows. The SaaS market is a dynamic thing though and as all technologies it follows specific trends and changes. In this article, we look at a few emerging trends that will be changing and shaping the SaaS and B2B software industry in the years to come.

Shadow IT is Impacting Transparency

A recent Cisco survey reveals that 75% of companies polled do not have a organization-wide cloud strategy. The study also shows that 83% of organizations are planning to work with leading cloud vendors to migrate their operations to the cloud.

These findings indicate that since 75% of enterprises have not planned a cloud strategy, gaps could be forming in technology organization and use in these companies and employees could be using their own products to fill the gap. This formation of shadow IT in these firms shows that top-level managers and executives seem to know little about their companys processes. Since CIOs are not aware of what software apps employees are utilizing every day, they are unable to standardize business processes, make future plans, and more importantly, protect vital business data.

To get rid of shadow IT, cloud software vendors need to offer discovery apps that can find and correct shadow IT problems in an organization. These discovery solutions should locate where shadow IT exists within a company and alert it as how they can combine similar solutions. By using these SaaS discovery apps, companies can minimize operational efficiencies and costs, and boost data security levels.

Data Security in the Era of BYOD (Bring Your Own Device)

You may be surprised to learn that the BYOD market is set to reach $181 billion by 2017-end and that about 67% of employees use their own systems at work to access personal and company data. Combined with shadow IT, the use of BYOD is making it hard for companies to track which employee has what data and on which device. The BYOD trend is thus throwing up data security problems for IT units.

Cloud-based software vendors can help in this regard as they offer security solutions that can protect your data and internal network. It is advisable to entrust your security details to a reliable third party vendor because they have more knowledge and resources than your own staff. So, do your research well and select a dependable vendor to make use of their competent and useful security features.

APIs are Important

It is important to integrate the cloud software apps with your existing business systems. Some companies aim to migrate all their data to cloud platforms while others wish to harmonize SaaS apps with their existing infrastructure to improve it.

For seamless integration, ask the following questions to the cloud vendor before you invest your money:

  • What capabilities does the provider offer to integrate the SaaS app with your existing business solutions?

  • Besides integrating new solutions, can the provider also integrate legacy systems that you use?

  • Can the software vendor offer data protection while the integration process is going on?

There is no doubt that it is up to the SaaS software vendor to ensure smooth integration without leaking or breaking anything critical.

Multiple Apps can Create Confusion

There are more than four million apps that can be downloaded from the major app stores. This means your company may use certain apps while another firm may select their own set of applications for the same task. So how can you collaborate successfully with this company on data sharing and projects? The answer is to integrate similar apps across different companies.

This type of integration has become a major trend in the SaaS industry. Vendors are striving to integrate their applications with similar solutions offered by their competitors. This kind of integration has become essential to make sure that companies can perform collaborative work easily without worrying communication issues, efficiency lapses, and data security problems.

More SaaS Vendors and More Funds for Them

The SaaS market has been booming for the past 10 years. Many SaaS companies are growing at a healthy annual rate of 30% and making admirable profits. As a result, these enterprises are reaching the $50 million target mark pretty quickly. Another interesting statistic is SaaS-based workloads will rise to 59% of all cloud-based workloads by 2018, increasing from 41% in the year 2013.

What this means is cloud software vendors are reaching the $50 million goal in much shorter time than before. As a result, they are attracting a host of venture capital companies who wish to invest in them. This is creating an influx of new ideas in the SaaS industry which is fuelling the rise of novel technologies.

To make use of the SaaS software boom, app vendors need to use digital marketing strategies, sales teams, and app stores to sell their wares to new clients. They need to utilize this combination to ensure they reach an average annual growth of 30% to breach the $50 million target mark quickly. We can safely predict that the funding explosion is set to become more aggressive and competitive in the future.

The Growth of DaaS (Data as a Service)

A notable thing about the technology market is the constant change and evolution. An important trend we can expect to see in 2017 and later years is the growth of DaaS. The main aim of DaaS is to offer companies a wide variety and large volume of cloud-based data at an affordable cost to facilitate smarter strategic choices.

An IDC study shows that the DaaS is set to grow by about 23% through 2019 to reach annual spending of $48.6 billion. The 23% growth rate per year is not that high and DaaS vendors need to strive for greater growth by paying for the infrastructure cost by investing in public cloud systems and by using open source software apps.

Similar to the SaaS market, the DaaS industry can be expected to grow rapidly in the future as companies look to override internal IT units in favor the of the solution and cost efficiency offered by third party vendors. Enterprises will look to use DaaS systems to track client needs in an accurate and cost-effective manner.

Bottom Line

The SaaS market is seeing major growth in all areas. This growth cycle is fueled by the need for enterprises to reduce costs while boosting efficiency. This means cloud vendors need to respond to their clients needs by offering apps to protect sensitive data, streamline similar services, and overcome the issue of shadow IT. By providing these essential elements cloud software providers can ensure they are successful in the competitive SaaS marketplace.
Why Progressive Markets?
We ensure precise data & information along with accurate analysis & forecasts.
Address your questions and solve your queries by direct communication with analysts.
We offer customization in reports to meet your business needs to help you stay ahead.
Research focused on specific markets offers you definitive, relevant, and valuable information and save your time.

Get Email Alert