SaaS or software-as-a-service sector is worth over $170 billion as of 2022. The industry has grown by around 500% in the last seven years and is thought to be one of the most successful tech businesses over the last few years. But there could be dark clouds looming.
The biggest challenge for the industry is also its biggest advantage, the need for an internet connection. SaaS products do need a strong internet connection. They are clumpy and difficult to use without it, frustrating the customers.
While this is becoming lesser as the world is getting better connected with broadband and 5G, many world areas still cannot upgrade to 5G. So, if all SaaS products are being innovated, keeping the 5G movement in mind, does it leave behind the rest?
One of the other glaring issues with the current range of SaaS products is the lack of customization. As the vendor controls most of the movable parts, the customer is always dependent on the vendor for all requirements. Certain vendors do offer personalized SaaS products, but the number is still few. There are also security issues as applications are channeled through the internet, and clients’ sensitive data could be at risk at any given time.
What is the way forward?
To begin with, SaaS applications could offer lesser speeds compared to the software installed on a customer’s computer or server. This would largely help them increase their geographical presence and also help them learn the innovation path by working with various markets.
There is growth in the area of security for cloud-based applications. However, there are still challenges, and customers are not fully convinced about the security offered to their data when it is floating in the cloud. This is something that SaaS giants definitely need to look to change in the coming times.
Cybersecurity is at the tip of everyone’s tongue. But, without the right trust, clients will never make the jump from offline services to online services. Change is always difficult, and the challenge is to convince companies to shift from computer-based applications to cloud-based ones.
Though there is the advantage of RoI in the short term, the vendor can up the price, putting the client in a difficult position. There are also bells and frills a client may not want for his company and is forced to buy the entire application.
Overall, SaaS products have a long way to go to earn public trust and become the mainstay of various industries. However, with the Covid on the wane, and more companies asking their employees to come back to offices, the utility of SaaS applications, which had seen unprecedented growth during the pandemic, may also wane.
The adoption of remote working has spurred the growth of cloud-based applications. However, the industry may not see similar growth patterns in the short term. So, the true way forward for the SaaS industry will ultimately be to innovate its offerings.
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