SaaS Solutions in 2023: Is There a Compromise for Custom Software?
Hi there!
The topic of this letter: SaaS Solutions in 2023.
Gartner predicts that the spending on public cloud services is forecast to grow 20.7% to a total of $591.8 billion by 2023 - a level of growth that will shape SaaS trends in the coming year. Does that mean that SaaS dominates the cloud computing market?
In this article, we'll explore why cloud computing has become the foremost necessity for organizations seeking to balance cost reduction and innovation, and what custom software is left with.?
Trend 1: Growth in the Number of Micro-SaaS
To stay competitive, businesses are increasingly adopting agile and personalized offerings. This trend is particularly evident among small teams or individuals, who are turning to Micro-SaaS tools to enhance the user experience within specific industries. These tools act as extensions or add-ons to larger products, helping to create more tailored and efficient solutions.
You can see similar products almost everywhere: on retail platforms (for example, Amazon Assistant for product comparison), and in grammar checker applications (Grammarly for Google Docs and MS).
Trend 2: Using Vertical SaaS
Whereas Horizontal SaaS focuses on clients across any sector and industry, Vertical SaaS is completely customizable, targeting clients within specific industries and supply chains. Companies who are looking to benefit from specialization are finding Vertical SaaS to be a cost-effective, industry-specific option that allows them to refine the customization of certain features.
Trend 3: Low-Code Popularity
Low-code development is a significant trend in the software industry, especially within the SaaS market. These platforms enable developers to create applications by eliminating costly and error-prone layers of development, allowing them to focus on application logic and user experience.? Having less code to write to form the foundations of your platform or solution means that technical staff or contractors can spend more time driving innovation or sweating the stuff that results in a real competitive edge.?
Trend 4: White Labeling
White labeling is a valuable option for startups aiming to gain market share quickly and with reduced logistical or financial costs. By utilizing a pre-existing platform or development framework, startups can focus on their value proposition, strategy, and branding without the need to start from scratch. This approach saves time and resources, allowing startups to establish themselves in the market more efficiently.
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Trend 5:The Growing Need for API Connections
The Application Programming Interface (API) has been a vital aspect of software development for years, and it is a key focus of our fifth SaaS trend. With the increasing popularity and adoption of SaaS solutions, the need to integrate them into existing business systems has become essential. While some companies may choose to migrate all their data to a cloud platform, many prefer to harmonize it with their current infrastructure to improve it. However, this can be challenging, and that's where the problem lies.
Trend 6: Data-as-a-Service (DaaS)?
In 2023, as the business landscape becomes increasingly competitive, the market for data-as-a-service (DaaS) tools is expected to continue developing new features that enhance the efficiency and security of data usage for companies across various industries. According to ReportLinker's global market report on DaaS, blockchain-based DaaS solutions and the rising demand for predictive analytics are among the primary drivers of the market's growth in the coming years. To meet these growing needs, software providers such as datapine are offering comprehensive BI solutions that provide convenient access to a range of features, including dashboard creation, AI-powered predictive analytics, real-time data retrieval, report sharing, and much more.
Trend 7: Leveraging Artificial Intelligence
If you Google "how to develop a saas application", you will find the info that according to a Gartner survey, around 40% of companies were prepared to integrate this technology into their business operations in 2021. Furthermore, the projected expansion of cloud-based AI in 2023 is expected to be five times greater than in 2019. Autonomous innovations empower organizations across industries with the ability to drive greater product, service, or content personalization while gaining a deeper, data-driven understanding of the needs of their audience. The perfect storm of more return for less input means that with AI, businesses can become more efficient and more intelligent with fewer resources.
Are Off-the-Shelf SaaS Solutions Enough?
While the SaaS trends we discussed can bring significant benefits to businesses in terms of cost reduction, agility, and innovation, custom software solutions still have their place in the market. Custom software solutions offer unparalleled flexibility, complete control over the development process, and the ability to tailor the solution to specific business needs. According to Adaptive Shield’s latest SaaS security report, SaaS misconfiguration is reported as one of the main security issues for cloud businesses since 2019. Therefore, businesses should carefully consider their needs, goals, and budget before choosing between SaaS solutions and custom software development.
Is there a compromise?
Businesses can create highly specialized, efficient, and innovative solutions that cater to their clients' unique needs by incorporating these SaaS trends into their custom software solutions. Here is how:
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Take care,
TRIARE team