There are three interrelated trends that will shape the next era of XaaS. Evolving customer needs and expectations will require that new types of “as a Service” offerings are created, and that the packaging and monetization of these offerings align to customer needs.

These trends include:

• Product-led growth (PLG): As defined by OpenView Venture Partners, product-led growth is a “growth model where product usage drives customer acquisition, retention, and expansion.” There are 11 key principles that define a PLG strategy; not all XaaS companies will adopt all strategies, but all will adopt some of these strategies.
• Ecosystems: “As a Service” offerings will increasingly be distributed via ecosystems instead of through one-to-one vendor-to-customer relationships. In specific categories, certain marketplaces will emerge as the primary routes for distribution to customers.
• Do it for you: This concept was the thesis behind payments SaaS company Paddle’s acquisition of ProfitWell. The idea is that “as a Service” offerings will continue to evolve from tools that help you do parts of your job to tools that do your job for you, increasingly by interacting directly with other tools.