If you’ve ever used a web browser to check your email, log into social media, attend a video meeting, or manage a project, you’ve probably used a SaaS (Software as a Service) application.
But what exactly is SaaS? How is building SaaS different from traditional software? And what are the benefits and challenges of using SaaS?
In this article, we’ll break down what SaaS apps are, how they’re built and maintained, their pros and cons, and the best practices for developing them. Let’s start with the basics.
What is SaaS?
SaaS stands for Software as a Service. Unlike traditional software that’s installed on individual devices like desktops or smartphones, SaaS applications are accessed over the internet through a web browser
The data for a SaaS app is stored remotely, in the cloud, and it’s the service provider’s job to maintain it. To use the app, all you need is a stable internet connection and a browser. Some SaaS apps even offer both web-based and mobile versions, like how you can access social media platforms such as Facebook or LinkedIn either through a browser or their dedicated apps.
Most SaaS companies make their software profitable by offering subscription plans, often starting with a free trial period—like a 14-day trial—after which users need to pay monthly or annually to keep using it.
What Makes SaaS Development Unique?
SaaS development stands out because it involves creating software that runs on a shared or private cloud. This setup presents unique challenges that traditional software doesn’t face, such as security, performance, compatibility, and user experience concerns.
SaaS developers must focus heavily on security, adding features like Multi-Factor Authentication (MFA), strong password policies, data encryption, and automated backups to keep user data safe.
Additionally, developers need to ensure the app works smoothly across a variety of modern web browsers like Microsoft Edge, Safari, Google Chrome, Mozilla Firefox, and Opera.
Another key feature of SaaS development is scalability. Unlike traditional software, a SaaS app can be easily scaled up or down after launch. Developers can add or remove features, services, and plugins in response to customer needs, ensuring the app remains competitive and up-to-date long after its initial release.
The Benefits of SaaS App Development
Developing a SaaS app comes with many advantages. These include lower costs for users, easy distribution, hassle-free maintenance and updates, and better scalability.
When combined, these benefits can significantly boost your business. They help generate steady revenue through subscription models, simplify the process of rolling out updates, and ensure your app stays up-to-date with the latest features, meeting customer expectations.
Let’s take a closer look at each of these benefits.
New Revenue Stream Through Subscription Models
One of the biggest advantages of SaaS is the ability to generate revenue through subscriptions.
Most SaaS providers build a subscription model into their software design. Users might get a free trial for a set period, like 14 days, and then they need to pay a monthly or annual fee to continue using the app. Alternatively, some apps use a ‘freemium’ model, where users get limited access and can only unlock the full feature set by subscribing.
Companies like Microsoft even provide guides on how to monetize your SaaS product through platforms like the Microsoft Commercial Marketplace.
Easy Distribution
SaaS is very appealing to both casual and business users because there’s no need to download software on every device. All users need is a reliable internet connection and a compatible browser.
Some SaaS apps offer both a web-based version and a downloadable version, giving users more ways to access the app in a way that suits them.
By offering multiple ways to access your SaaS product, users are less likely to face accessibility issues and more likely to embrace your app.
Easy Maintenance and Updates
SaaS apps can be updated, patched, and improved even after they’re launched. By listening to user feedback and fixing any issues promptly, developers can continuously enhance the app.
This flexibility allows companies to address problems, add new features, and improve existing ones without overhauling the entire app. Over time, this helps the app evolve and keeps users satisfied.
The Challenges of SaaS App Development
While there are many benefits to SaaS development, there are also several challenges that need to be addressed.
If these challenges aren’t dealt with early, they can cause significant problems down the line. For example, leaving out a key feature until the last minute might make it more costly and time-consuming to implement later. Also, hosting an app in the cloud brings its own set of cybersecurity concerns.
Let’s dive into some of the challenges of SaaS development.
Cloud Security Issues
Since SaaS apps are hosted on cloud environments, they are more vulnerable to security threats than traditional software. If a cloud provider is attacked, it could affect every app hosted on that server. To prevent this, it’s critical to choose a reputable cloud provider and include strong security features in your SaaS app, such as Multi-Factor Authentication (MFA), data encryption, and strong password policies.
Compliance with Regional and Industry Standards
When developing a SaaS app, it’s essential to ensure that your app meets all regional and industry-specific standards.
For example, the GDPR (General Data Protection Regulation) in Europe gives users the right to request the deletion of their personal data. In industries like healthcare, there are specific standards, like IEC 62304:2006, which govern the development of software for medical devices.
Make sure your development team, whether in-house or outsourced, has an expert who can handle compliance checks. This will ensure your app can be used in your target regions and industries without legal or regulatory issues.
Avoiding Downtime During Updates
During updates and maintenance, you might need to temporarily limit or restrict access to the app. To minimize disruption, it’s important to notify users in advance about when updates will occur and how long they’ll last.
It’s also a good idea to schedule maintenance during off-peak hours, such as early mornings, to avoid affecting users. This can be tricky if your app is used globally, with users in different time zones, but advance notice helps users plan accordingly.
Best Practices for SaaS Application Development
Building and launching a SaaS platform is a great opportunity to tap into new markets, gain a competitive advantage, and improve the user experience. But with so many paths to choose from, it’s easy to lose sight of your main goals.
To make sure your SaaS platform meets the highest standards and helps achieve your business objectives, here are some practical tips to streamline the development process and create a better product.
Hire a Compliance Expert
Ensure your SaaS platform meets all the relevant regional and industry standards by hiring a qualified compliance expert. If you’re outsourcing the development, make sure the team has a compliance expert on board who will oversee quality assurance and make sure your platform meets the latest requirements.
Compliance for SaaS covers areas like security, performance, and data privacy, so it’s crucial to hire someone with the right expertise to address all these needs.
Use Content Delivery Networks (CDNs)
Content Delivery Networks (CDNs) are groups of servers located in different geographic areas that help speed up the delivery of content to users. They don’t host your content but cache it on servers closer to users, improving loading times and performance.
CDNs not only help your site load faster but also reduce bandwidth costs by minimizing the amount of data your main server has to send.
Choose the Right SaaS Architecture
Choosing the right SaaS architecture from the start is key. There are different frameworks available, but the two most common are Monolithic Architecture and Microservices Architecture.
Monolithic Architecture means your entire SaaS platform is built on a single codebase. This can be efficient, but changes to the code could affect the whole system, so you must be careful with updates.
Microservices Architecture, on the other hand, breaks the platform into smaller, independent units that work together. This can offer more flexibility and scalability but requires more coordination.
Your development team will guide you through the pros and cons of each, helping you choose the architecture that best suits your platform’s needs.
Why You Should Invest in SaaS App Development
Today, users access applications on desktop computers, smartphones, and tablets, making SaaS apps incredibly useful.
With SaaS, there’s no need to install software on every device. Updates are easy too—your development team can push updates to the cloud-based app without requiring users to manually install new versions.
That said, there are challenges too. SaaS apps may face compatibility issues when integrating with third-party components, and sometimes they may need scheduled downtime for updates.
To minimize disruption, plan maintenance ahead of time and notify users early, ideally during off-peak hours like early mornings.
The key to success is having a skilled development team—whether in-house or outsourced—that understands all aspects of SaaS development and includes a compliance expert to ensure your platform meets industry and regional standards.
By doing so, you’ll improve the chances of launching a SaaS app that meets user needs, aligns with your business goals, and complies with all relevant regulations.
