Software as a Service: How to build a SaaS Application

Learn the practical steps in building a SaaS application, what is a SaaS application, why you need one for your business, and the types of SasS platforms.


Software as a Service (SAAS) is the ideal business model for online companies. It facilitates the retrieval of data directly from the server, eliminating the need for users to acquire their copies.

SaaS development companies offer incredible chances for startups and small vendors to grow their enterprises. Typically, SaaS solutions are pretty adaptable. Customers are compelled to adopt this service due to the simplicity of cloud-based technologies.

According to the business growth rate, SaaS goods are the best source. Constantly, businesses ponder what more steps they could take to maintain parity with their rivals. However, following the latest technological developments might be difficult for entrepreneurs. Cloud computing is one of the most recent technological advances that has altered various industries.

Currently, a SaaS application handles the majority of cloud workloads. This begs the challenge of constructing a SaaS solution for the company. A dedicated development team can assist with the process and build a solution that meets the organization's objectives.

Here, you will discover the initial procedures for launching a SaaS firm. First, the manual will explain the target market and an effective marketing strategy. Then, the pricing and marketing strategies are examined. You will ultimately be able to monitor your whole start process. 

What Is SaaS?

Software-as-a-service (SaaS) is a cloud computing model that leverages software as a Service. A subscription mechanism underpins the software delivery, which necessitates access to the internet. Every time customers need it, they can use the SaaS platform from any device with an Internet connection. A SaaS product saves organizations money on hardware because the programs and their data are hosted on a remote server. In addition, there are no ongoing maintenance, security, or compliance concerns for SaaS platform users because of this. All you need to get started with a SaaS solution is a web browser and an Internet connection.

SaaS technology's remote cloud product hosting by dedicated servers is one of the most critical win-win tactics for both users and the company. In other words, you'll be able to save money on hardware support and maintenance.

As a result, customers don't have to deal with the installation, configuration, and update issues they do with mobile or desktop applications. Google Drive is only one of many examples of software as a service (SaaS) applications. You can store data on their servers, synchronize files across devices, and exchange files using this platform, which is a cloud-based office system.

Types of SaaS Platform

As the technology sector continues to expand, software quality and adaptability are becoming more and more important to users. SaaS applications already cover most company fields that could profit from SaaS technology because of these reasons.

Here are types of software as service solutions and their examples:

Cloud Collaboration Software 

This type of software assists businesses and teams in enhancing their communication, productivity, and company culture. The most popular SaaS collaboration applications are Slack, Zoom (a web-based cloud version), and Trello.

SaaS E-Commerce Infrastructure

This software enables firms to construct cloud-based e-Commerce products with various capabilities, such as inventory management, payment integration, and user-friendly checkout. 

BigCommerce, Shopify, and Volusion are some of the leading SaaS e-Commerce products. 

Vertical SaaS

Vertical Software-as-a-Service (SaaS) products are cloud-based software solutions that serve a specific market niche. Simply put, these SaaS applications are designed to fulfill customers' specific requirements within a single industry. 

Veeva (life sciences research), HotSchedules (restaurant management), and ClearCare are the most well-known vertical SaaS startups (home care management).

CRM SaaS Software

Customer relationship management in the cloud SaaS software enables organizations to track lead flow, connect clients, automate processes, and increase sales from any location.

Salesforce, HubSpot, and ZenDesk are the most well-known CRM SaaS products.

SaaS ERP

Many firms are turning to cloud-based enterprise resource planning software to manage their business processes in real-time.

Odoo, Oracle ERP Cloud, and Scoro are some of the most popular SaaS ERP solutions.

SaaS Billing Software 

In addition to a payment gateway, merchant account, and subscription management platform, cloud-based billing software may incorporate advanced analytics functions.

Stripe, Braintree, and Recurly are three of the best SaaS billing applications.

Steps in Building a SaaS Application

To create a successful SaaS service, you must adhere to the following steps:

1. Research the Market

 This market research aims to provide definitive responses to the following questions:

  • What problem(s) would my SaaS application solve?
  • Who is my intended audience, and how might I segment them?
  • Who are the leading rivals to my SaaS application?
  • What distinctive characteristics and benefits do they offer end-users?
  • Could I create a problem-solving solution with specific killer features?
  • What business model do my rivals employ?

Businesses should understand the concept of a SaaS platform and have a clear sense of what they want from it.

In addition, they must examine all market categories, particularly those targeted by their program. Therefore, a cost-benefit analysis of both options is necessary.

Several factors must be determined before initiating the process. For instance, organizations must comprehensively know their target market, competitors, and market circumstances.

Additionally, they should have reflected on the significant requests and how the SaaS platform will be distinct from those of competitors. 

A written business plan might assist entrepreneurs in meeting the market's stringent requirements. The target market is the one for whom everything is planned, and gaining a deeper understanding of this market will reinforce the vision. There should be sufficient reasons for users to prefer your SaaS goods over others. 

The market analysis is a fantastic tool for evaluating business possibilities and identifying the optimal solution. Furthermore, analyzing the achievements and failures of rivals will aid in defining the SaaS product's strategy and developing a solution to meet the demand. 

2. Business Plan

Creating a roadmap for the development process is one of the most vital tasks in the SaaS product development process. In each phase, essential considerations must be made for the group to advance correctly. In addition, the platform's characteristics should be distinct and reflect the company's worth and brand image.

Every successful product aims to alleviate multiple market pain points. Likewise, a SaaS product should be able to address problems and influence the target audience.

The business plan details the company's marketing strategy and how it will use digital platforms or partnerships to convey its message. Making a profit with the SaaS platform should also be among the top priorities.

Before initiating operations, the business should develop subscription plans and describe its monetization strategy. The strategy should detail all features and premium alternatives, as well as how they will assist recover costs and generate a profit for the business.

The development team must account for the expected expenses of every department. The team must identify its financial sources and establish a budget based on investments and other resources.

These should be enough to bring their vision for the SaaS product to fruition.

Defining the project's short- and long-term objectives can help everyone maintain focus.

These objectives may change over time, but they establish the conditions for constructing the most powerful SaaS platforms.

3. System Requirements

A cloud computing SaaS solution should be capable of performing a variety of tasks and include attributes that are characteristic of this system.

However, essential features must be present in every product of this type. These are crucial to the best SaaS platform since they support customers and users.

For example, the shared database is a cost-effective choice with fewer maintenance fees and a greater capacity.

The system should offer self-service, i.e., automated processes that accelerate connections and provide a reliable platform for users.

In addition, data encryption and other application security measures are typically incorporated into SaaS products. These should defend the system and its users from external dangers.

The most secure SaaS platform may be developed using identity verification, account management, and access permissions.

In addition to monitoring all actions and reviewing audit logs to track changes and prevent unauthorized users from gaining access to the system, establishing a SaaS product entails monitoring all activities.

These precautions safeguard data and maintain the solution's integrity.

Changes can be monitored and intrusions prevented using audit logs.

It plays a significant role in protecting data and resolving integrity and access issues. However, besides these fundamental capabilities, the SaaS platform should have specialized functionalities that address niche issues and increase market competitiveness.

4. Technical Stack

The technological stack for a software development project consists of programming language, framework, tools, and methodology.

Choosing among the many possibilities may not be straightforward when constructing a SaaS platform. The selection is determined by the business and its specific requirements.

As a result, no architecture or tool is optimal for developing the most refined SaaS platform.

Front-End: This development portion is responsible for everything the user sees and requires modern JavaScript frameworks. There are more than a few systems that fit the requirements of a SaaS platform.

Back-End: The back-end development supports the software's server-side functionality. This is not visible to users, but it is responsible for the essential functionalities of any SaaS product. In addition, it determines responsiveness; developers want a dependable framework such as Django, Ruby on Rails, or Node.js.

Database: The database for the SaaS platform contains all the information required for the program to work well. MySQL, PostgreSQL, and NoSQL are the most frequently used database systems.

Hosting Provider: A dependable cloud provider, such as Microsoft, Google, or Amazon, is required to host the SaaS product system.

5. Development Team

Any product's success depends on the team that develops it; therefore, creating a SaaS solution requires a group of seasoned specialists.

They ensure that all requirements are met and that each feature has been thoroughly tested for robustness.

The ideal team for developing the most excellent SaaS platform includes developers, designers, business analysts, and quality assurance engineers.

6. Minimum Viable Product

Creating a Minimum Viable Product (MVP) is a suggested phase for developing a SaaS product.

This is a prototype of the comprehensive solution that contains enough essential elements to attract the initial users and support the company's vision. The minimum viable product is the best approach to join the market and build up as needed.

Although the MVP is not the final product, it assists in addressing the customer's most pressing issues. Therefore, the SaaS product must appeal to the target audience and help customers create trust in the solution.

The objective of a minimum viable product (MVP) is to launch a concept without spending much money. Therefore, it is a fantastic approach for developers to gather feedback on the usability and utility of their solutions.

They can determine which features are popular and which ones need to be altered to build the optimal SaaS platform.

In addition, the organization can test the solution and determine whether the application has what it takes to compete in the SaaS platform market.

Finally, they can decide if clients are willing to pay for the services and whether demand is sufficient to warrant a full-scale application. Before settling on a final vision, developers might also experiment with various ideas.

Benefits of SaaS Software Solution

Entrepreneurs and startups are motivated to create new SaaS products because of the benefits of Software-as-a-Service.

1. User-Friendly Interface

Online SaaS applications are accessible via various platforms, including desktops, laptops, tablets, and smartphones. As a result, there is no steep learning curve due to the interface's usability.

Customization is also a feature of SaaS applications. Thus, businesses can slightly tailor their apps to the requirements of their respective industries.

2. Cost Reduction

Due to the shared or multi-tenant nature of SaaS, its hardware and software license costs are lower than those of conventional models, resulting in cost savings.

The SaaS business model also enables you to expand your customer base swiftly, as small and medium-sized organizations have access to the software they would not otherwise have.

SaaS companies on the environment and divide it among all customers who utilize the system, hence reducing maintenance expenses.

3. Scalability and Compatibility

Typically, SaaS solutions operate in scalable cloud environments and integrate with other SaaS offerings. With this model, no additional servers or software are required. Your sole responsibility is to enable a new SaaS offering while the SaaS provider plans server capacity. Additionally, you can increase or decrease your SaaS usage as needed.

4. Painless Improvements

Businesses save time and money by utilizing hosted Software as a Service in the cloud. As a result, customer software versions will be periodically updated. These bonuses are included in the subscription price or package for customers.

Compared to traditional software solutions, this one requires fewer updates, a higher cost for maintenance, and the support of SaaS developers.

5. Remote Application Access

Businesses today desire the ability to work from anywhere and on any device. As a result of the pandemic, several companies now permit remote employment.

Employees can access software data and vital tools from any internet-connected device using a SaaS model and work remotely.

It is not necessary to install software or connect to a VPN. As a result, even amid business interruptions, SaaS suppliers maintain efficiency.

6. Data Security

Expertly crafted software vendor programs are essential for data security. For example, customers can back up and store data on internet servers using SaaS models.

In addition, multi-factor authentication and anti-phishing programs in the cloud provide clients with high-quality data security solutions and make device switching easier.

Cloud computing provides storage with reliable performance that can scale your business.

Customers can select different storage capacities based on the business data they wish to store. In addition, a service-level agreement (SLA) guarantees the integrity of essential business data storage.

7. Cloud-Based Implementation

Businesses can do regular activities without cumbersome hardware using the cloud. For example, with a SaaS business model, a customer purchases a membership and obtains online access to software via a platform.

8. Compatibility With Ease

Software and enterprise systems must be compatible to ensure team communication. By utilizing SaaS, firms can avoid version-related compatibility difficulties.

The SaaS business model enables subscribers to immediately log in to a service that has been upgraded and customized.

This seamless compatibility minimizes downtime and decreases staff stress. In addition, through the use of SaaS, software mismanagement becomes less of an issue.


We Provide consulting, implementation, and management services on DevOps, DevSecOps, Cloud, Automated Ops, Microservices, Infrastructure, and Security

Services offered by us: https://www.zippyops.com/services

Our Products: https://www.zippyops.com/products

Our Solutions: https://www.zippyops.com/solutions

For Demo, videos check out YouTube Playlist: https://www.youtube.com/watch?v=4FYvPooN_Tg&list=PLCJ3JpanNyCfXlHahZhYgJH9-rV6ouPro

If this seems interesting, please email us at [email protected] for a call.


Relevant blogs:

Migrating Monoliths to Microservices in Practice 

AWS Lambda Timeout and How to Overcome It 

Serverless Is the New Timeshare 

Importance of Kubernetes in IoT Applications


Recent Comments

No comments

Leave a Comment