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How Micro SaaS is Growing to Serve Niche Markets

micro saas

As SaaS explodes in popularity—soon expected to account for a majority of all software—we continue to see tremendous innovation in the scope of service offerings, as well as in the ways organizations utilize SaaS to excel during a time of rapid digital disruption

This seismic growth introduced the rise of the dedicated SaaS manager, as well as other emerging SaaS trends, like more cloud vendors pivoting to usage-based pricing models and expanding to new industries.

We’ve already seen the cloud evolve from horizontal SaaS tools for specific areas of the business—such as marketing or finance—to vertical SaaS, which serves distinct industries like automotive shops, retail, hotels, barbershops, and more.

Looking ahead to 2022 and beyond, we’re beginning to see a new type of SaaS arise. Enter the concept of Micro SaaS.

What is Micro SaaS?

Similar to vertical SaaS solutions, Micro SaaS tools dig deeper and support an even smaller niche or user base. Often, these tools may only solve a single problem, rather than offering a comprehensive, all-encompassing solution. 

Think of a Micro SaaS company like you would a small local business, one that employs a single employee or skeleton staff. Because it serves a highly specific customer base or need, theses vendors require minimal resources and low overhead. Micro SaaS companies typically lack a physical office space, as well as costly features like 24/7 customer service or dedicated support representatives. 

Micro SaaS solutions usually come as add-ons, integrations, or extensions to other SaaS tools, but can also include stand-alone applications, too. For instance the writing assistant tool, Grammarly, integrates with both Microsoft Word and Google Docs. And the email productivity tool, Boomerang, enhances Gmail messages. 

A couple of examples of existing Micro SaaS companies include StatsOut, which combines analytics from multiple platforms like Google Analytics, Facebook, and Stripe into a single dashboard, and Linkody, a tool to manage and track backlink campaigns.

What are the Benefits of Micro SaaS?

Micro Saas tools offer several benefits for businesses and software developers alike. From filling the software void in highly niche industries to providing an inexpensive and easily accessible solution to help businesses thrive.

Benefits for organizations and employees

Micro SaaS ultimately provides unique solutions to employees who work in highly specific industries. It brings more businesses who may not normally benefit from cloud-based applications—even small mom-and-pop shops—into the digital age. 

SaaS is already more affordable and much easier to acquire than traditional software. Micro SaaS takes it a step further. The vendor can offer the service for an inexpensive rate due to low operational costs. Even better, you can even speak directly with the app designer if you need support or want to suggest an improvement.

Benefits for software vendors

Micro Saas businesses offer several advantages to prospective software developers. Notably they introduce far less risk than running a full-scale company. In fact, many Micro SaaS entrepreneurs treat their businesses more like a side hustle. They can generate a couple thousand dollars of monthly recurring revenue and have the potential for acquisition by a large software company.

Running a Micro SaaS business can also be highly fulfilling to the owner, who likely created the tool to solve a personal or work-related need. And because Micros SaaS vendors only need an internet connection to run their businesses, it provides the freedom to work from anywhere, say by the pool or a picturesque mountain lodge.

At Zylo, we have a finger to the pulse of what’s going on with SaaS. From SaaS vendors increasingly switching to usage-based pricing models to businesses placing enhanced vigilance on SaaS Management, check out the Top SaaS Trends for 2022 and Beyond.