SaaS Trends of 2020

Software as a service, for many, seems the way to go when it comes to streamlining business practices and improving workflow. 

In a nutshell, SaaS removes the need for organisations to install and run applications on their own, eliminating the expense of hardware, acquisition, provisioning, and maintenance. Email, sales management, CRM, HR, financial management – this can all be managed through implementing software as a service.

Through the use of SaaS, all the above practices – i.e, fundamental business tech- can be managed from one source. As a leading web design agency, our SaaS developers here at Code23 know their stuff, so we’ve compiled some stats and trends to get you clued up for 2020. 

73 % of organisations are looking to use SaaS by the end of this year. (Source-

By 2020, 85% of small businesses will invest in SaaS solutions. (source- 

That number speaks for itself. Thinking of implementing SaaS? Already use SaaS? Get ahead of the game and read on to discover the trends to look out for in 2020.   

  1. Vertical SaaS
  2. Pricing
  3. Security 
  4. Artificial Intelligence
  5. Mobile First 
  6. Integrations
  7. Micro – SaaS
  8. White Label 

Vertical SaaS

Now that many companies are familiar with how SaaS can be implemented to assist with core focus, the natural next step in defining exact needs, streamlining processes and improving efficiency comes in the form of Vertical SaaS. 

The use of Vertical SaaS has tripled in the last 10 years. Providing a better, more customised system, at its core, Vertical SaaS is tailor-made to meet specific needs, providing the answer for particular §niches within a business framework. It should come as no surprise that Vertical SaaS has grown in popularity, as, certain industry experts now SaaS to assist with their business functionality. Rather than needing to implement a horizontal approach which could involve unnecessary costs, processes, and data, the vertical approach achieves the following:

  • Improved data governance
  • Increased business value
  • Greater accuracy of analytical tools

Vertical SaaS will be music to the ears of businesses that require cloud-based services for a particular niche within their business alone. As cloud-based services can be developed and customised for specific industry needs, it is of benefit to the client and the customer. The client can focus on one particular pool or section of resources. 


With many SaaS providers catching up with the fact that software as a service is the answer to many, how can they appeal to the wider market? Through making software-as-a-service more accessible. An easy way to do this? Configure the pricing to reflect demand. I.e., invoke a pay per use model as opposed to the previously preferred payment system of subscription. Subscriptions can be beneficial, yes, but they can also be extremely costly to those who can’t stretch their budget that far. For many smaller startups or SMEs, they may not need every single integration or feature of the SaaS available, and will, therefore, be put off by a costly join up fee and monthly cost. 

Pay per use model offers:

  • More flexibility 
  • Chance to cut expenses 
  • An easy option for those with an indistinct cashflow/ timeframe


Data and User security, surprise surprise, is a hot topic for 2020. Security and SaaS will never likely not be a focus, and with technology advancements providing the answers for businesses in lots of ways, they also provide opportunities for highly elaborate, complicated hacks/ data breaches.

66 percent of experts say that security is the biggest concern when it comes to cloud computing strategy. 

Security with software-as-a-service and where responsibilities lie is sometimes seen as a grey area, as some put it down to the end-user, and others to the software provider should things go wrong. Human error, surprisingly, is still the leading cause of security breach. Regardless of the reasons for security concerns in 2020, SaaS providers are yet again ensuring it is the primary focus to deliver to clients. 

Artificial Intelligence

AI has increasingly been integrated into the core functionalities of software as a service. This shouldn’t come as a surprise- after all, the core functions of AI- to speed up business processes, assist with tasks, improve capabilities to the user- arguably mirror the core functions of software-as-a-service. 

Core functions of AI:

  • Optimising business processes
  • Improving efficiency & productivity 
  • Augmenting human capabilities
  • Enhancing responsiveness/ personalisation

AI is a growing technology that more and more businesses are implementing -be that in the form of chatbots, in-house automation, or AI driven algorithms to adapt a business’ core processes. 

Mobile first approach 

Mobile first approach – again, this shouldn’t be newsworthy. In fact, for the last few years, a mobile first approach has understandably taken precedent. Mobile traffic has no signs of slowing down and with mobile becoming a more advanced, powerful and important player in the business world, software-as-a-service companies need to consider this. Constant mobility and constant accessibility are the leading principles for software as service providers to consider, as more and more individuals are not only working remotely but also, conducting business through their mobile, on the go, instantly. 


Most companies use different software day to day for the various aspects of their business. No two businesses are the same, so it stands to reason that no two businesses will require the exact same approach to their way of working. Of course, using such different software brings with it complications, as working from different platforms can delay processes and cause bumps in the road when it comes to communication and fluidity on a day to day basis.

Managing different systems can be time-consuming, increasing the risk of human error. Separate IT environments naturally make things difficult when it comes to:

  • Accessing
  • Processing
  • Integrating 

For this reason, many businesses decide to integrate different apps. This makes it much easier to access and control business. Some businesses employ third parties, and it is more common for businesses to equip software with integration.

Micro- SaaS

Another SaaS trend for 2020? Micro SaaS. This is a small tool developed to assist with an existing Saas product. The reason Micro SaaS have taken off in the way that they have is due to their nicheness. This means SaaS providers can expect high margins, the more niche the software service offered. Every Micro SaaS service that succeeds will, in some way, assist with flexibility, scalability and cost effectiveness. 

Their USP is their ability to provide a unique service in addition to a pre -existing, popular SaaS. Rather than try and create a new market leader that will stand no chance of competing with popular, leading platforms, Micro SaaS taps into those niche markets, providing easy add ons or plug ins that leading platforms can buy into as well. 

White Label 

You may not have heard of white label, however, it’s a trend that’s set to take precedent in 2020 as businesses seek to personalise their core processes as much as possible, without having to spend time or resources in house to achieve this. Simply speaking, white label solutions see smaller businesses, in particular, tap into the resources of leading software providers in order to develop software solutions for their business, for them. These tools seem to be designed by the small businesses themselves, however, they will, unlikely, have the capabilities, budget or inner resources to do so. That’s where SaaS software comes in. 

White label solutions provide a cost effective and timely solution, using pre-approved practices and implementing them for the benefits of your own business. Taking the pressure off the individual, its no wonder white label solutions have grown in popularity as SaaS has similarly. Trying to develop tools and solutions that already exist and are provided by a trusted source seems a complete waste of time. Which is exactly why white label solutions are a leading trend of 2020.

To find out more about SaaS development at Code23 contact us for more information.

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