The top SaaS trends for 2023 📈

And: management changes at Pipe // Datadog's Universal service Monitoring announcement.

This is the Cloudly Update. Helping you stay above the Clouds.

Today we focus on; SaaS trends for 2023, highlight the management changes at Pipe, and Datadog's Universal service Monitoring announcement.

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  • SaaS pricing

Saas is contending with a new normal for pricing and undergoing a new value-to-cost realignment.

  • AI in SaaS

SaaS and AI share a symbiotic relationship. While their developments provide better customization and nuanced solutions, SaaS products also give AI and ML a larger, more focused group to identify, analyze, interact with, and learn from.

  • API influence in SaaS buying

It is expected to touch $13.7 billion by 2027 at a CAGR of 25.1%.

  • Customer retention will remain a growth axis for SaaS

A 5% improvement in retention can generate up to a 95% improvement in overall revenue. And it is at least five times less expensive than acquiring new ones.

  • Market consolidation will give rise to new category leaders

Acquisition by mature SaaS businesses makes way for full-funnel SaaS applications or super apps. In contrast, smaller SaaS businesses that are acquired utilize their new parent company's pool of resources to access a broader customer base.

  • Vertical SaaS

The vertical SaaS industry is growing with increasing interest from investors and venture capitalists.

The three Co-founders of Pipe are stepping down from their current roles.

The face of the company, Harry Hurst, transitions from his role as co-CEO to vice chairman. Fellow founder and co-CEO Josh Mangel will temporarily assume the role of chief executive. CTO and co-founder Zain Allarakhia will remain on the board and serve as a senior advisor to the company.

Pipe had raised $250 million at a $2 billion valuation in May 2021 and is well positioned despite management changes.

Datadog announced the general availability of Universal Service Monitoring. It automatically discovers, maps and monitors every microservice without any code changes.

The product uses eBPF technology and complements Datadog's foundational Infrastructure Monitoring and Application Performance Monitoring capabilities.

It integrates with Service Catalog and enables a comprehensive view of an organization's technology stack health. And resolves issues faster by adding end-to-end distributed traces.

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