It’s January, it’s the first week back at work after the Christmas holidays and that means only one thing: predictions for 2015!
Having worked with SaaS products for the last 6 years, I’ve seen quite a few predictions that have come to fruition and quite a few that haven’t. However, the general consensus is that SaaS is growing and will continue to do so.
We all see new technologies/services that can change the market virtually overnight, for example, Salesforce or Basecamp, but these are successes in a sea of SaaS companies. So, what does 2015 have in store for the rest of the fish in the sea and their customers?
Here are my 5 predictions for SaaS in 2015.
1. Cloud data services will overtake traditional methods
According to research carried out by Forrester, Microsoft will begin to generate more revenue from its cloud services than its traditional on-premise solution this year. Why is this? Why is 2015 going to be the year the cloud surpasses traditional storage?
For years the cloud has been catching up with traditional methods but I believe that increased broadband speed, relatively inexpensive data hosting, more advanced web browsers and a heightened trust in the cloud are all contributing factors. All of these factors have now reached a point where it makes both financial and productive sense to start using the cloud.
SaaS is no longer in its infancy and many of the services have been perfected with adoption rates steadily rising year on year. This is why I believe 2015 will be the year of the cloud.
2. Whatever your industry, there’s an app for that
As mentioned in my previous point, the fact that SaaS is maturing will bring new market opportunities. A ‘one solution fits all’ strategy is no longer good enough and the market is looking for specific industry products. In industries like manufacturing, wholesale and distribution, 2015 will see new apps launched to specifically counteract any constraints and will be more appealing to enterprise customers.
3. Big Data is only going to get bigger
Currently Big Data is… well, big, and 2015 will see adoption from companies and services rise. The Big Data market has an annual growth of 61% with no signs of slowing down. With the cost of cloud storage per unit decreasing, more companies will become interested in Big Data analysis, with SaaS being the platform of choice.
4. Managing customer retention will take priority
Almost every company will have a CRM system of some sort in place, if you haven’t then you really should be looking to. They are essential to retaining your customers and collaborating with your colleagues. According to Gartner the CRM market will grow by 14.8% annually and the main deployment will be SaaS.
SaaS working with Big Data (see above point) will further enhance traditional CRM systems by including business intelligence to give companies a 360° view of each customer and encourage a proactive working culture rather than a reactive one that traditional CRM systems take.
5. Competition will rise
It’s inevitable: with a growing market and simple deployment method, SaaS vendors will face increased competition both locally and globally in 2015. However, the established vendors will still hold the majority of the market share as startups will have a lot of catching up to do in terms of promotion, customer trust and feature set.
Even though the established vendors will hold their market share, new competition will ensure that they accelerate development of their service to stay one step ahead, resulting in an enhanced product for customers.
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