The State of SaaS and What You Should Expect in 2021
Software as a service, or SaaS as it’s called, has become the go-to choice for companies looking for accessible and versatile software solutions that can analyze massive amounts of data. The main pull is that when businesses use a SaaS solution, they do not need to use their own systems or data centers.
SaaS, as a model, is both agile and cost-effective. This has allowed for enterprise revenue top $100 billion in Q1 of 2019. The astounding annual growth rate of 30% shows us what direction SaaS adoption is heading.
These days, the average business spends around $350,000 annually on SaaS. This is a figure that has continually been increasing, year over year.
The SaaS industry has become incredibly saturated and cluttered in recent years. There are now around 35,000 software products spanning a wide range of vertical industries. There are continuously more being released every day. With so many SaaS products on the market, this has led to an average of 9 competitors within the first year of a SaaS company doing business.
Content marketing has proven itself to be a sound investment for SaaS companies, helping them generate leads and compounded revenue. The top 10% of SaaS blogs get over 100,000 organic visits every month.
SaaS Over the Next 5 Years
As successful as the SaaS industry is right now, is this predicted to hold up in the future? Will their market strategy continue working so well?
One of the significant developments to expect over the next five years is the rise of vertical SaaS. This means that software solutions for clients will be completely customizable. Clients will be targeted so that solutions are industry-specific. This will offer a high degree of business value, as well as pre-defined metrics and customer intelligence.
We will also see increased attention placed on educating and inspiring their audiences. Currently, only about a quarter of all SaaS businesses take part in content marketing, with an astonishing 11% of the major SaaS industry players not even having a blog.
The bottom line is that the SaaS industry is growing rapidly and will become more specialized and targeted in the next five years, with a greater emphasis on providing educational value as well.
About the Author:
Houman Asefi is SaaS strategist, award finalist blogger, and startup advisor, focusing on building and scaling sales and business development and making sure companies achieve their targeted revenue.