The Future of SaaS: Embracing Emerging Technologies for Innovation and Growth

19/03/2024
The SaaS industry has experienced tremendous growth in recent years, driven by its ability to provide businesses with access to powerful software applications without the need for in-house IT infrastructure or maintenance. As the SaaS market continues to evolve, emerging technologies are poised to play an increasingly significant role in shaping the future of this dynamic sector.
Here are some of my thoughts specifically around emerging technologies that will support innovation and further growth within this industry.

Artificial Intelligence (AI)

I cannot ignore AI.  It’s rapidly transforming the way SaaS applications are developed and deployed. AI-powered features are being integrated into a wide range of SaaS solutions, from customer relationship management (CRM) to project management tools. For instance, AI-powered chatbots can provide 24/7 customer support, while AI-driven predictive analytics can help businesses make informed decisions about their operations.

The use of AI in SaaS is expected to grow significantly in the coming years. According to a report by Gartner, AI will be embedded in more than 75% of all new software applications by 2025. This widespread adoption of AI will, revolutionise the way SaaS solutions interact with users, optimise operations, and deliver value to businesses.

Augmented Reality (AR)

Despite its existence for several years, I still consider this to be an emerging technology, because it hasn’t yet been widely adopted by businesses or integrated into mainstream applications.  It’s still primarily used in niche applications and experimental projects but AR does have the potential to disrupt the SaaS landscape.

AR applications can overlay digital information onto the user’s real-world environment, providing a more immersive and interactive experience. For example, AR-powered training modules can guide employees through complex procedures, while AR-enabled sales tools can help customers visualise products in their own homes and the latter is growing in popularity.

IKEA has an AR app that allows you to see how furniture would look in your home.  Home Depot has an AR app that allows you to see how home improvement products would look in your home, and Sephora has an AR app that allows you to try makeup virtually.

A recent study by AR Insider found that 75% of consumers are willing to use AR to visualise products in their home before purchasing them.  So, its potential is undeniable, but AR is still in its early stages of adoption.

As AR technology matures, we can expect to see a wider range of innovative AR applications emerge in the SaaS space. A survey in July 2023 by Statista found that 37% of businesses plan to invest in AR by 2024, so there’s still a long way to go.

Internet of Things (IoT)

The IoT is the network of physical devices embedded with sensors and software that can collect and exchange data. As the IoT grows, SaaS applications are being developed to manage and analyse this massive influx of data. For example, IoT-enabled SaaS solutions can monitor equipment performance, optimise energy consumption, and provide real-time insights into customer behaviour.

The IoT is expected to create a massive amount of data, and SaaS providers are well-positioned to capture, analyse, and monetise this data. According to a study by McKinsey, the IoT will generate $1 trillion in annual revenue by 2025. SaaS providers that can effectively harness IoT data will be at the forefront of this new era of data-driven business.

Innovation and Adaptability: Keys to Success

In the dynamic SaaS landscape, innovation and adaptability are crucial for success. Businesses need to be constantly exploring new technologies and adapting their offerings to meet the evolving needs of their customers.

SaaS providers that can successfully integrate AI, AR, or IoT into their solutions will be well-positioned to capture a greater share of the market and grow. By embracing these emerging technologies, SaaS businesses can enhance customer experience, optimise operations, and drive innovation.

But it doesn’t just stop there. With the ever-evolving SaaS landscape, having the right commercial talent in place is crucial for driving growth and success.  As an experienced Executive Search leader at PSD Group, I specialise in identifying and placing top-tier SaaS commercial talent, from sales leaders to marketing experts, to help SaaS businesses achieve their commercial objectives.  If you’re looking to empower your SaaS business with exceptional commercial talent, please get in touch as I’m here to help you achieve success.

About

Stuart Bremner

Director