What is SaaS Trends 2020? and its Future


SaaS is a business model in which consumers pay for the use of cloud software. The affordability and wide range of features offered by SaaS cloud enterprises are attracting more and more organizations. According to Gartner, SaaS revenue is expected to reach a whopping $ 151 billion by 2022. The SaaS market has already reached maturity in many ways, but cloud software still accounts for less than 20% of enterprise software costs. Since the cost of cloud software is still significantly lower than the cost of enterprise software, the further growth of the SaaS industry in all areas and directions is expected.

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So what does the future of SaaS look like?

Vertical SaaS

The term “vertical SaaS” has come into use with the advent of companies developing software for a specific industry. Unlike the classic “horizontal” players, providers of vertical SaaS-solutions are ready to offer the client cloud services adapted to their field whether it is construction, healthcare, banking, or information technology.

From SaaS to PaaS

Companies working with SaaS gradually grow and reach a high level of development and implementation of their technologies. Meanwhile, their main goal is not to grow the client base, but retain users with the help of innovative solutions. Therefore, the platform as a service (PaaS) has become a widely used approach on the market. More and more companies are expanding the capabilities of original products and offer additional applications and services.


A great example of PaaS is Salesforce’s platform. It was created to simplify the development and deployment of cloud applications and websites. Another example is Hubspot. This company offers solutions such as CRM and task management to improve business processes. These are just a few examples of SaaS-based companies that also provide PaaS services to their clients. Their ultimate goal is to become market leaders in their niche. More and more companies that apply  SaaS to their business are becoming major market players. In the coming years, many of them are expected to adopt the platform as a service model as well.

Security and Private Cloud

Security will remain to be an important issue when it comes to SaaS. This fact is reinforced by the adoption of the General Data Protection Regulation and other rules regarding the privacy of the users’ data. The more people use the Internet for business and personal purposes, the more breaches take place in the digital landscape. Thus, personal and corporate data might appear to be at risk.

In addition, remote workers collaborate with companies through unencrypted networks that are more vulnerable to hacker attacks. To mitigate security risks, SaaS companies strive to come up with the best security solutions like Pagely’s Secure WordPress Hosting. For example, Pagely developed PressArmor, a security architecture that strengthens and protects its WordPress network, equipment, and applications. The main goal is to prevent and reduce risks for customers.

Artificial Intelligence

AI plays a greater role than ever in marketing. In the future, even greater dependence on AI and predictive analytics is expected. There are over 300,000 business chatbots on Facebook Messenger. By 2020, 80% of enterprises are expected to deploy chatbots and use them to enhance the interaction between a client and a company.

Chatbots benefit businesses and users at the same time. They work for you around the clock and provide quick answers to requests. They can help attract visitors to your site and turn leads into customers. Chatbots are also being developed to provide more personalized service. This hyper-personalization can help customers get through the sales funnel.

Machine learning also has an impact on the development of the SaaS industry. ML allows applications to increase efficiency and automate processes. For B2B marketers, this can lead to an increase and improvement in leads.

Artificial intelligence has also strengthened human capabilities to increase efficiency and productivity. Today you don’t need to keep records or do repetitive tasks manually, AI will do it for you. Saas optimized AI solutions for enterprises, which have led to significant improvements in speed, automation, and even security. AI  chatbots that are now widely used by various SaaS organizations have helped boost customer service. Studies show that AI is transforming SaaS solutions, which by the end of the decade could increase global GDP by 14%.

Hybrid cloud deployment

Client-service software was the only option for enterprises for more than a decade. But as we approach 2020, more and more SaaS companies have begun supporting hybrid cloud delivery.

The hybrid cloud integrates private and public clouds. Saas companies can now place their data in accordance with security requirements or auditing, thereby using a cost-effective public cloud while maintaining confidential data in a private cloud. This cloudy trend not only simplified the business but also helped to effectively protect users’ data from hacker attacks.

Enhanced Use of Social Media in SaaS Marketing

Social media is usually far below the list for organizing B2B sales. We are seeing an increase in social efforts (and increased budgets) to reach the target audience. While Millennials and other young professionals are moving to more meaningful B2B roles, social networks are playing an increasingly important role. Social sales account for more than 60% of revenue in most technology industries, including B2B SaaS marketing.

This year, SaaS will become even more personalized. The market for SaaS solutions is growing rapidly, largely due to the flexibility and high profitability of the niche.

Usama is a software engineer by profession and at TechBeasts.com he uses his expertise to solve everyday consumer tech problems with his main areas of interest being Android, iOS and Windows.

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