5 Reasons Why SaaS is a New Trend in 2014
Before I dive into this article let’s begin with a definition, as until around 6 months ago, I didn’t know what an SaaS was and what an Saas looked like.
What is a Saas?
Software as a Service (SaaS) is a software distribution model in which applications are hosted by a vendor or service provider and made available to customers over a network, typically the cloud. SaaS is closely related to on demand computing models and are generally paid on a monthly recurring fee (not always, but generally). The way you’ll spot a SaaS at the moment is a nice and long 1 page sales page, with all of their features, followed by a pricing structure (Monthly, Yearly etc.).
Examples of SaaS’s:
- Live Ops – http://www.liveops.com/
- Antenna – http://www.antennasoftware.com/
- C9 – http://www.c9inc.com/
- CVM Solutions – http://www.cvmsolutions.com/
- Exoprise – http://www.exoprise.com/
- Host Analytics – http://www.hostanalytics.com/
- Knowledge Tree – http://www.knowledgetree.com/
- Gage In – http://www.gagein.com/why-gagein/
Despite the constant challenges any small business face, the rise of Software as a Service, or SaaS, has leveled the playing field and made it much easier for businesses and entrepreneurs to find success. So far 2014 has brought some exciting news for the world of business and technology, as Google’s launch of its new Hummingbird algorithm will change (for the better) the way searches are conducted, and websites are optimized. But SaaS is also on the rise as a trend, and below are the 5 reasons why SaaS will likely be the new 2014 trend, and why that matters to business owners and entrepreneurs.
1. Businesses Have Changed the Way They Sell
SaaS made selling products and reaching consumers far easier and cheaper for businesses. Small and large companies now sell products and create their brands not just through ads and brochures, but through webinars and video demos, and are able to reach clients and collaborators from all over the world. As such, most businesses will make it their interest to further make their sales process more cost-efficient, and SaaS companies can help them with that by providing software to automate and manage such a process. The demand will necessarily yield more SaaS providers.
2. A Rising Need for More Sophisticated Analytics
The analytics services that SaaS companies have provided has become a crucial component for businesses to measure the efficacy of their product and branding, and the demand is not likely to stop in this year. In fact, as the majority of SaaS companies are offering analytics and metrics as part of their service packages, any SaaS company that wants to remain competitive will do well to remain at the vanguard of such a demand.
3. A Decline in Business Verticalization
SaaS has been the great equalizer, giving even small businesses the opportunity to compete with more giant companies. The rise in popularity in the products that foster usability and collaboration between businesses has become popular enough that services for SaaS companies and products will likely continue to soar in 2014.
4. A Growth in Availability of SaaS Services
SaaS companies will become more popular and as such, they will be able to provide a wider range of services at a price point to match all needs. New companies like New Relic and Simply Measured are two examples of companies that are reaching their customer base by focusing mainly on a factors such as a lower price and integrated functionality.
5. SaaS Companies are Seeking to Establish Long-Term Relationships With Their Customers
One of the reasons why SaaS has seen a rapid growth in the past several years is precisely because of the approach that they take to their sales. Instead of providing customers with a one-time product, SaaS companies have aimed to retain customers by constantly refreshing their services. Though the competition of SaaS providers will certainly rise in 2014, it seems as though the consumer will be at an advantage. This builds on my post here about the upcoming trends in social media. Companies are beginning to put in the effort for the long run and provide 80/20 quality to quantity.
As SaaS remains on the rise in this year, it is a trend that should matter to consumers because business owners and all else who use such services will likely benefit from an increase in product variety and a drop in the costs to provide such services.