Driven by fast improvements in artificial intelligence, cybersecurity, and cloud-based solutions, the technology and SaaS sectors are ready for major breakthroughs in 2025. LBMC has outlined key trends that will impact this industry in the upcoming year. Adapting to these developments presents fresh opportunities for businesses and customers to keep a competitive edge, simplify processes, and innovate.
In this article, review these key healthcare trends:
- Artificial Intelligence and Machine Learning
- Quantum Computing Breakthroughs
- Strengthened Cybersecurity
- Cloud Spending Dynamics
- Mobile and 5G Usage
- Extended Reality (XR) Technologies
- Sustainability and Renewable Energy in IT
- SaaS Market Evolution
If you want to understand how M&A is shaping the tech industry in 2025, Driving Tech Growth: Key Trends in the M&A Advisory Space explores key trends driving strategic acquisitions and private equity investments. As AI and sustainability reshape business priorities, technology companies are leading the charge in innovation and expansion. Learn how programmatic M&A, portfolio optimization, and expert advisory services can help businesses navigate this evolving landscape and create long-term value.
“For technology and SaaS companies, staying ahead requires not only innovation but also strategic tax planning. LBMC assists these companies in navigating business tax credits, such as R&D tax credits, and other incentives, fueling growth and sustaining competitive advantage.”
KYLE BALDWIN, SHAREHOLDER AND TECHNOLOGY INDUSTRY LEADER, LBMC, PC
2025 Business Outlook Report
The 106-page 2025 Business Outlook Report breaks down the biggest shifts happening right now.
1. Artificial Intelligence and Machine Learning
Redefining the technology scene, artificial intelligence (AI) and machine learning (ML) enable businesses to adopt automation, predictive analytics, and tailored customer experiences. In business, we predict that the use of these technologies will deepen in 2025.
By automating difficult activities, producing content, and supporting customer service, generative artificial intelligence systems can create efficiencies, cut expenses and reallocate staff toward higher-level strategic tasks. In 2025, Generative AI is expected to contribute to a 20% increase in operational efficiency.
2025 Top 10 Strategic Technology Trends
Source: Gartner
Personalization through AI
AI is changing the way businesses interact with their customers by making things more personal. Advanced machine learning allows businesses to offer individualized marketing campaigns, updated product suggestions, and even customized services in fields such as finance and healthcare.
AI and ML aren’t just trendy terms anymore; they’re essential tools for businesses that want to remain competitive. Gartner indicates that 84% of digital marketing leaders believe that using AI/ML boosts their ability to provide real-time, personalized experiences to customers.
AI in Decision-Making
Although company leaders expect AI to help them make high-stakes decisions, companies should make ethical AI practices and data transparency a priority as artificial intelligence and machine learning become central components of business models. About 50% of companies worldwide are projected to adopt AI for high-stakes decisions by 2025, improving corporate agility and competitive responsiveness.
AI governance platforms will be critical for overseeing the moral, legal, and practical performance of AI systems. Gartner predicts that by 2026, 20% of organizations will use AI to flatten their organizational structure, eliminating more than half of the current middle management positions.
2. Quantum Computing Breakthroughs
Particularly for those requiring advanced computations like climate research, genomics, and cybersecurity, quantum computing is rapidly developing and will have a major impact.
Companies will most likely find quantum computing to move from a theoretical tool to a real tool around 2025, especially in cloud computing. According to Gartner, 40% of big businesses will start quantum computing initiatives by 2025. Businesses can handle massive amounts of data more readily by putting this change into practice. Quantum computing could present an uncommon degree of vulnerability for conventional encryption systems.
Industry-Specific Innovations
Industries including materials research and healthcare will gain from quantum computing’s ability to replicate molecular interactions, enabling discoveries in sustainable material development and medicine discovery. 2025 is a vital year for businesses committed to cybersecurity to use quantum-resistant encryption and other security measures to keep ahead of technological risks.
As quantum computing comes online, companies are moving to quantum-resistant encryption techniques to future-proof their data security systems. For sensitive data, especially in finance and healthcare, this change is a necessary adaptation.
“No leap in AI technology will yield accurate predictions about customer behavior, sales, or production if the underlying data from the business does not exist. At LBMC we are focusing on actionable and practical AI solutions to bring real business value to our clients.”
JON HILTON, SHAREHOLDER AND PRACTICE LEADER, CONSULTING AND BUSINESS INTELLIGENCE, LBMC, PC
3. Strengthened Cybersecurity
The Technology and SaaS industry is giving advanced security measures top priority as cyber threats become more complex to safeguard data and keep consumer confidence.
Cybersecurity mesh will become the industry standard in 2025, allowing businesses to use distributed security perimeters around individual assets instead of centralized ones. This setup increases resistance against cyberattacks and reduces systematic flaws. Companies utilizing cybersecurity mesh claim a 30% decrease in the effect of security incidents resulting from its distributed security perimeter.
SaaS-Specific Security Protocols
Often managing significant client data, SaaS services are improving built-in security measures. Strong data encryption, real-time threat detection, and connection with AI-driven anomaly detection systems are among the major advances.
These improved security protocols are designed to protect businesses against cyberattacks, safeguarding customer data as well as their reputation.
“During our cyber assessments, clients are telling us that more than ever, investing in cybersecurity is good business and leads to more sales and trust.”
STEWART FEY, SHAREHOLDER AND TECHNOLOGY INDUSTRY LEADER, CYBERSECURITY, LBMC, PC
4. Cloud Spending Dynamics
The hybrid cloud market is growing as more enterprises use multi-cloud solutions to improve resilience and scalability. Pay-per-use and serverless computing models will continue to grow in popularity. These models will help businesses better manage their costs and resources. Global cloud-related spending was expected to increase by 20.4% in 2024.
In addition, the increasing use of renewable energy and green computing practices by data centers is making sustainability a top concern. These initiatives assist firms in meeting their regulatory and environmental objectives.
“We are seeing record numbers of organizations moving to the cloud with reasons for doing so becoming more and more prevalent each year. Security has been a major driver of enterprises demanding cloud solutions which are SaaS based or simply moving their legacy applications to a major cloud hosting provider. With Microsoft and Amazon spending billions of dollars to provide cloud services, most companies simply cannot outspend these dominant hosting centers. Data protection and security cannot be stressed enough and cloud offers the absolute best security available to us today. It’s never a bad time to explore your journey to the cloud with LBMC Technology Solutions.”
BRYAN WILTON, CEO AND PRESIDENT, LBMC TECHNOLOGY SOLUTIONS
5. Mobile and 5G Usage
Companies’ interaction with their clients and staff is changing due to the growing use of 5G networks and mobile technology. The use of mobile-optimized SaaS platforms will become the norm in 2025, particularly in sectors such as healthcare, inventory management, and security.
This change fits the growing acceptance of mobile-to-mobile ecosystems, which streamline processes, raise customer experiences, and allow real-time data exchange.
The spread of 5G networks lets companies use fast, low-latency communications. This enables companies to deploy smarter infrastructure by supporting cloud-based applications, remote operations, and IoT devices. From 2021 to 2026, the global 5G IoT market is expected to grow at a compound annual growth rate (CAGR) of 73%. This means that businesses that use this technology will have a lot of chances to make money.
6. Extended Reality (XR) Technologies
Extended reality (XR) technologies—which include augmented reality (AR), virtual reality (VR), and mixed reality (MR)—are transforming how users interact with digital and physical spaces. By creating immersive experiences, XR is set to revolutionize industries such as retail, healthcare, and entertainment in 2025.
Differences in XR Technologies
AR in Retail and E-commerce
Augmented reality will keep changing retail by letting consumers see goods in actual environments before they buy. This development may lower returns, raise consumer confidence in online buying, and improve satisfaction.
A study by the XR association showed that the following industries report that they are currently using or investing in XR technology. AR can reduce product returns by up to 25% and increase customer engagement by 40%.
Business Leaders Report Growing Adoption of XR Technologies
Source: XR Association
Immersive Collaboration
XR technologies are being used by businesses to construct virtual workspaces, allowing teams worldwide to work as though they were in one room. This development is especially beneficial in remote working environments where team building can be a challenge.
Companies across sectors can investigate these immersive technologies as XR tools develop to enhance internal processes as well as customer involvement.
7. Sustainability and Renewable Energy in IT
As companies address sustainability, they are also adopting green computing and renewable energy projects. Among the biggest energy users in IT are data centers, although their carbon impact is helped by the move toward solar and wind sources.
- 75% Renewable Energy by 2025: Data centers aim to match 75% of their electricity demand with renewable or hourly carbon-free energy by December 31, 2025.
- 100% Renewable Energy by 2030: Full renewable energy sourcing is targeted for data centers by December 31, 2030.
Energy-Efficient Cloud Computing
Energy-efficient cloud computing faces challenges like high implementation costs, infrastructure compatibility, and the need for specialized expertise. With the increasing demand for data worldwide and stricter environmental regulations, it’s really important to embrace solutions such as liquid cooling and AI-driven energy management. These approaches can help cut down on operational costs, achieve sustainability targets, and keep up with the competition. Worldwide end-user spending on public cloud services is forecast to grow 20.4%.
Actionable Insights:
- Adopt energy-efficient cloud solutions.
- Integrate liquid cooling.
- Collaborate with renewable energy providers.
- Leverage AI for energy optimization.
- Explore advanced heat recovery systems.
Sustainable IT Practices
Several businesses are implementing circular IT practices, which involve refurbishing hardware and extending the lifespan of devices, to mitigate waste. Twenty-eight percent of companies globally reuse or repurpose IT hardware internally. However, there are still 26% who don’t fully recycle their IT assets, indicating room for improvement. Strict environmental regulations imposed by governments across the globe are pushing companies to give sustainability a top priority.
Moreover, eco-aware consumers are choosing to deal with companies displaying a commitment to green solutions more and more.
8. SaaS Market Evolution
Expanded services, improved pricing strategies, and vertical SaaS customized for sectors define the new phase the SaaS sector is about to enter in 2025. This development is in response to an increased need for adaptability and personalization in digital services.
Vertical SaaS, which tackles special difficulties in sectors such as healthcare, real estate, and finance, is resulting from this change. This expertise gives businesses more pertinent tools and support.
This shift toward specialized, adaptable solutions, fueled by advancements in AI and IoT, highlights how the SaaS market is aligning innovation with industry-specific needs to empower businesses with smarter tools and more effective strategies.
“Including artificial intelligence (AI) and the Internet of Things (IoT) will help to maximize the lifetime of products. Real-time analytics and automation in these technologies help to increase efficiency and decision-making.”
AARON HALE, SHAREHOLDER AND TECHNOLOGY INDUSTRY LEADER, AUDIT, LBMC, PC
Adjustable Pricing Strategies
To remain competitive, SaaS companies are trying innovative subscription models including usage-based billing, which gives customers more options. 2025 will witness an increase in micro-SaaS companies, which center on features or services inside more expansive systems.
SaaS consolidation is also probable as businesses try to increase their products and eradicate rivals via mergers and acquisitions.
SaaS businesses prioritize customizable, affordable solutions and client-centric approaches to stay relevant and expand in a crowded market.
Outlook - Empowering Technology & SaaS Success with LBMC
From using artificial intelligence for personalizing to safeguarding data with quantum-resistant cryptography, 2025 will bring fascinating technological and SaaS innovations as well as challenges. Companies that leverage mobile-first SaaS, energy-efficient solutions, and real-time threat detection while addressing sustainability goals will be positioned to thrive.
To enable businesses to properly negotiate these changes, LBMC provides customized technology and SaaS solutions. From sophisticated cybersecurity plans to artificial intelligence and data integration solutions, LBMC offers expertise across IT risk management, digital transformation, and regulatory compliance.