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10 Trends That Will Shape The Healthcare SaaS Market in 2020

The healthcare industry often utilizes software as a service (SaaS) to increase software versatility and accessibility without having to install and run applications on multiple computers and data systems. SaaS is currently dominating the cloud computing market, especially in the healthcare industry, and as time goes by, it will only become more prevalent. By 2020, healthcare professionals and facilities can expect to see the 10 following SaaS trends in the industry.

1. Use of Multiple Clouds

Companies utilizing Platform as a Service (PaaS) solution will see distinct advantages in 2020. As healthcare companies become more confident using multiple cloud providers, many companies will strive to increase their ability to store, process, analyze, and secure important healthcare data. Instead of using various cloud providers for various applications or disaster recovery, such cohesive approaches will start to become more common.

Recently, APIs such as Google Health has allowed companies to approach big data differently. The number of businesses using cloud-based apps is expected to increase by 19.6%. The current healthcare cloud computing market is valued at nearly $18 billion and is expected to increase by nearly 18.7% between 2020 and 2025.

2. Increased Attention to Security

Since companies will be utilizing multiple clouds in 2020, there will be a much greater need for security, privacy, and compliance. Although using a multi-cloud approach clearly has its benefits, such approaches can give rise to new security complexities. Such complexities will become more and more common as companies change from simply understanding infrastructure as a Service (laaS) on a single cloud to understanding how PaaS and SaaS can work together.

As early as 2018, more than 67% of cybersecurity professionals were concerned about data loss and leakage. 9 out of 10 also had heightened concerns about security prior to 2018.

3. Artificial Intelligence

Many varieties of SaaS are self-learning and autonomous, and fortunately, artificial intelligence will become more and more popular among healthcare companies and organizations. More than 81% of the most successful IT companies have begun to work on AI technologies, allowing them to revolutionize business processes and increase efficiency and productivity while supporting human capabilities and automating repetitive tasks.

Artificial Intelligence can provide healthcare organizations with a higher degree of interaction between businesses and responsiveness. Machine-learning algorithms capable of detecting patterns and trends are a part of the overall AI algorithm for pattern recognition. This allows companies and individuals to set their machines to meet a pre-set goal or notify them when something happens, ensuring they can retain more control over their company.

So, just how will AI improve SaaS in the healthcare industry in the coming year:

  • Personalization: Software is much easier to utilize with technologies such as NLP (Natural Language Processing), which detects voice control and human speech patterns. Healthcare organizations can utilize such software to assist customers, address client needs, and improve customization.
  • Security: Artificial Intelligence automation and its ability to recognize patterns can help organizations detect potential threats more quickly. There is also a self-recovery aspect that can help companies recover important data in the event of an emergency.
  • Automation: Machine learning, a branch of AI, is often utilized in the customer service applications field. AI powered-operations, such as chatbots will be more widely used.
  • Speed: Internal processes can be sped up using Artificial Intelligence-enabled SaaS, allowing companies to improve their overall responsiveness levels, make immediate forecasts, and find answers to questions quickly.

SaaS solutions that are Artificial Intelligence-optimized can help companies augment their internal processes with more efficiency, faster automation, and a higher level of personal responsiveness.

4. Vertical SaaS

Vertical SaaS is also forecast to become more popular in 2020. Horizontal SaaS, which can be employed in any industry or sector will become less common, while Vertical SaaS, which allows companies to target clients and supply chains while customizing operations will be more common. Healthcare BI software, modern logistics analytics, and retail analytics software are just a few examples of Vertical SaaS, and companies seeking the benefits of specialization will find they are more cost-effective due to their customization abilities.

Vertical SaaS can also provide healthcare companies with the following advantages:

  • KPIs and Predefined Metrics: Organizations can integrate and predefine metrics, KPIs, and certain analytics. Such abilities will allow them to address and assess long-term performance and processes.
  • Customer (Patient) Intelligence: Organizations can quickly and efficiently gain access to industry-specific intelligence and patient data, which can help them better understand patient insights.
  • Better Data Governance: Vertical SaaS can help companies better address data governance procedures with its industry-specific compliance abilities. Such abilities can assist companies in increasing transparency.
  • Business Value: Software must be designed to meet industry standards. These standards provide businesses with a higher degree of value in terms of performance and company operations.
  • Higher Standards: In 2020, Vertical SaaS will help healthcare companies and organizations provide higher-quality service in specific industries, allowing them to distinguish themselves from other competitors.

5. Increased Need for API Connections

A fundamental part of software development, API (Application Programming Interface), will become a major trend in 2020. As SaaS solutions have become more common on the market, there is a greater need to integrate them into existing business systems. Some organizations prefer to migrate their data to another cloud platform altogether, whereas some will prefer to harmonize their data with existing infrastructure.

Unfortunately, there is no sure way to fully integrate data. For this reason, many healthcare organizations will rely on SaaS vendors to provide them with better integration capabilities. This reliance can be advantageous, especially since companies will no longer need to send patients to third parties.

If your organization prefers to invest in a cloud vendor’s help, be sure to ask yourself the following questions before (this can guarantee a more seamless integration):

  • Can this provide integrate my legacy system?
  • Will my data be protected during the integration process?
  • Does the provider have the ability to help me integrate the SaaS within my current business system?

By asking yourself the following questions, you can gain a better understanding of whether you want to invest in a third-party.

6. PaaS Migration

Surely, innovation will continue to evolve as the software and service industries evolve, and as time passes, many developers specializing in healthcare software will focus more and more on patient retention in addition to patient acquisition. For this reason, in 2020, healthcare organizations can expect to see SaaS moving towards the realms of PaaS (platform as a form of service). PaaS allows companies and organizations to create custom apps and add-ons to their current services. Overall, there are three PaaS trends organizations can expect to see next year:

  • PaaS offerings are flexible, accessible, and robust, so companies will be able to scale their business with less effort using a platform as a service.
  • The PaaS model offers a high degree of security in the form of automatic updates.
  • The ability to customize, as well as enhanced features and functionality, will improve business agility, giving healthcare organizations more time to focus on their commercial issues.

7. Unbundling of SaaS

Micro-SaaS companies are typically run by small teams, sometimes with as few as two employees. Their products usually consist of complementary add-ons to current developments and existing platforms. Such add-ons can help improve missing features or enhance a current SaaS product.

Miniature SaaS offerings are poised to become more and more profitable and popular in 2020 and beyond, so some healthcare companies may want to consider using micro-SaaS to their advantage. According to a Spok survey, nearly 63% of polled hospitals utilized six or more SaaS applications.

8. The Use of Edge Computing

Edge computing is also expected to become more prevalent in the coming year. Edge computing has the ability to extend computing power indefinitely and utilize the possibilities of micro-services networks. In other words, edge computing places data centers closer to their points of use. To do this, edge computing requires fog computing, a standard that governs their workings.

Fog helps edge computing in the way cloud helps SaaS. Since it functions as a decentralized form of IT architecture, it can help with storage, running networks, and computing functions between end devices and cloud data centers. Edge computing is poised to become a must-have data generation machine for healthcare Big Data, and according to Forrester, nearly 27% of global telecom decision-makers said they intend to expand or use edge computing in their operations. Like the telecom industry, the healthcare industry can benefit from edge computing as well.

9. Pay-Per-Use

SaaS vendors typically operate on subscription models, which allow users to pay a set amount for services per month or year. The scheme is effective for both customers and vendors, but in recent times, many have transitioned to a pay-per-use (PPU) model, which is better for healthcare companies offering temporary services. Such price models also work well for healthcare startups, which often experience cash-flow issues.

10. DaaS Revenues

Due to the use of AI – approximately 30% of enterprises will start generating Data as a Service (DaaS) revenues this year and more so in the future. The same study also states that 75% of commercial business solutions will integrate with AIs and more than 50% of users will encounter it at some point.