#11 MicroSaaS is the future of software economy
December 6, 2022•264 words
The software industry is constantly evolving since its inception. The industry that was once dominated by giants like IBM and HP is now dominated by startups. But, with the advancement in technologies like platforms as a service (like AWS, Azure and GCP) and no-code tools (Bubble, Glide, Adalo, etc.) the industry is seeing a rise of companies called MicroSaaS - companies run by a single person or a very small team.
Most MicroSaaS products start out as a side project and grow to become a revenue generator once it starts to see some traction.
The founders of these companies want to build a consistent income stream and are often not worried about growing fast. They aim for a couple of thousand dollars of monthly revenue to keep them afloat. They use this financial buffer to build their next MicroSaaS project.
Users are attracted by MicroSaaS because they’re affordable, transparent, and the founder/team is easier to access as they cater to a small number of customers. On the other hand, larger corporations keep an eye on these companies and acquire MicroSaaS products to either integrate them into their product or eliminate the competition.
My view is the trend is here to stay.
In the near future, MicroSaaS will be the equivalent of the neighborhood store, the family doctor, or a family photographer.
They serve a small number of customers, build great customer relationships, make decent money and slowly grow their business. And, the advantage over traditional brick-and-mortar is that a MicroSaaS product can serve the needs of any customer across the world without any hassle.