SaaS software development: definition and how to build

SaaS software development: definition and how to build

The next natural step on your path to business success is to develop SaaS apps. However, converting an already existing solution to SaaS or building one from scratch necessitates a thorough comprehension of SaaS intricacies. In order to capitalize on the technological advantages of SaaS and expand your organization, this article will help you understand details about SaaS software development

What is SaaS software development? 

The development of cloud-based apps is known as SaaS software development. It entails document generation, design, development, testing, and server deployment.

What is SaaS software development? 

SaaS software vs. traditional licensed software  

In the old days, consumers would purchase software licenses and install the programs locally on their own devices. SaaS apps don’t require users to utilize their own server gear or run software on a specific device, in contrast to conventional software solutions. Instead, they allow users to access pre-configured software from any device, with all the labor-intensive work being handled by the cloud.

SaaS software  Traditional licensed software
  • Affordably priced monthly subscription
  • Pay for only what you use.
  • Custom features are available upon request.
  • Available from any internet-connected device
  • Regular, frequent, and timely vendor updates
  • Data security at the highest level
  • Large initial investment and paid updates
  • Future growth opportunities are limited.
  • Software that is only available on a specific device
  • You are responsible for data security.
  • You are in charge of hardware upkeep.
  • Manually applying updates is required.

SaaS software vs. Web Application

SaaS software  Web Application 
  • SaaS applications are apps running on a cloud infrastructure.
  • A SaaS application requires no infrastructure requirement from users.
  • SaaS is accessible via both a web browser or a program interface.
  • The backend is multi-tenant (a feature that allows for sharing costs and resources).
  • The SaaS application is unlimitedly scalable as per NIST requirements.
  • A server hosts web applications.
  • A web application can be used using a browser. Web apps include both customized WordPress sites and shared servers that are configured to run them.
  • Scalability and availability are two factors that restrict the majority of web applications, including scheduling tools.
  • Has one tenant in the backend.

Pros and Cons of SaaS Application Development


Simple to deploy

Since SaaS providers centrally maintain, update, and deploy their services in the cloud, which lowers the cost of software maintenance, this benefits both SaaS users and providers. They are exempt from installing newer software versions on the client-side.


A scalable cloud environment with easy third-party integration is where a SaaS software development solution should be situated. APIs make it simple to integrate third-party-enabled features into SaaS apps, making it easier to adopt better features for the platform. Because businesses simply pay for the services they use, scaling on the user end is likewise smooth since no software or servers are needed by consumers. They can easily upgrade to a better subscription with a few clicks if their needs change.

No specialized hardware is needed

Users can access the platform with any type of device as long as it has internet connectivity, even though the SaaS provider needs a lot of sophisticated software or a third-party hosting provider.

A safe and effectively constructed database

SaaS database vendors use SSL and TLS encryption as their default security mechanisms. Data security costs are reduced for providers since user communications and data are protected. Additional protocols can be integrated into the SaaS paradigm quite easily and quickly. Using third-party integrations is one example.


Incorporating services from outside parties

The difficulty in this situation is that integration can be difficult due to the complicated technical requirements. It’s important to keep in mind that the kind of third-party integration you’ll require relies on the primary purpose of your platform’s software-as-a-service.

An encrypted database

SaaS programs store a significant amount of sensitive data that is accessible from almost any device with a web browser. This makes it more vulnerable to hacking.

SaaS database service providers utilize SSL and TLS as their default security methods for encrypting user-to-server and user-to-user connections in order to avoid this. However, the amount of data handled by SaaS solutions cannot be sufficiently secured by this degree of protection.

Deployment with no down-time 

Regular platform updates must be prioritized. The platform is frequently inaccessible during maintenance.

Traditional systems will alert users of downtimes when completing an upgrade. However, because most Software-as-a-Service systems must be available at all times, their maintenance teams use a no-downtime deployment technique.

Subscription lifecycle management

Subscription is a sophisticated element of Software-as-a-Service that entails:

  • Subscribing
  • Trailing
  • Upgrading
  • Canceling
  • Unsubscribing

These checkpoints are all about handling subscription lists. And there are two ways to do it. The first is to use and build your subscription system from scratch, while the second involves the use of external APIs.

SaaS software development process 

Step 1: Generate and validate ideas

The conceptualization and validation of products form the core of your creative process. The process of coming up with ideas and sharing them with the SaaS software development team is known as ideation.

On the other side, validation requires determining whether the idea is viable before moving further with the core. The more technical components are handled by the SaaS software development partner, even while the company handles the initial round of idea validation. The following checklist is used for SaaS idea creation and validation:

  • Make a SaaS concept,
  • Comprehensive market research
  • Specify the necessary technical characteristics,
  • Make a working prototype of your application.
  • Check that the prototype complies with all applicable rules.

Now, the design step should be started as soon as your idea has been conceptualized.

Step 2: UX/UI Design

User experience design and user interface design are steps in the creation of a SaaS software development product. While UI refers to how the platform will seem and function, UX is concerned with designing the platform’s blueprint. Any icon, button, or form on the layout is an additional platform feature, it’s crucial to remember that.

Step 3: Development and testing

Making a design into a working platform is the core of SaaS software development. What we signify by that is: 

  • The architect offers the UX/UI design files,
  • The code required for the features to work is then written by the backend engineer.
  • The frontend developer uploads the design to the server and links it to the backend.
  • The QA tester creates and executes tests to detect and report defects and manage remedies, while the project manager manages and coordinates the entire process from start to finish.

Step 4: Product launching and maintaining 

The SaaS platform will be deployed here using GitHub, AWS CodeCommit, or another launching platform.

The DevOps engineer – a team member with experience guiding software through its launch phase – is in charge of the main part of the activity. Following that, maintenance will begin.

However, most tech entrepreneurs make the common error of not budgeting for maintenance during this stage. This must be addressed from the beginning of the planning process.

Step 5: Product Scalability

In this step, you should regularly collect consumer feedback. There are numerous methods for doing so, such as client interviews, questionnaires, email feedback, and so on. It’s a really important task. Because, regardless of your target demographic, market sector, or whether it’s a B2B or B2C SaaS service, you’ll be spending money on the following:

  • New features addition.
  • Monitoring and analytics
  • Product improvement
  • Support

SaaS software development process 

Cost of SaaS software development 

The precise price is dependent on a number of variables, primarily the location of the developers, the complexity of the program, and the kind of team they are working with. As determined by the different sorts of teams, we only discussed the most crucial costs here:

In-house/Internal development team

Making a job offer to the public, attracting potential developers, testing their knowledge, and making your decision constitute a fairly simple scenario. You can have daily briefings with them and have complete control over your process with this option. They are always available at your beck and call for any urgent situation. The firm must pay for taxes, salary, healthcare costs, and workspace, so choosing an in-house SaaS software development staff is taxing.

Outsourced development agency

Companies in foreign nations can develop tech solutions with the assistance of a dedicated SaaS software development team from an outsourced SaaS development agency. A software outsourcing company offers the chance to realize the full potential of your concept, regardless of its complexity or scale. However, they have disadvantages as well, including the requirement to constantly monitor the team’s operations to make sure that their advancement is consistent with the founder’s plan.

Freelance developers

Independent, full-stack developers who work for themselves are known as freelancers. They have extensive experience creating Software-as-a-Service websites from scratch using a variety of tech stacks. On websites for independent contractors and social media platforms, you may easily locate one among freelance coders.

Local development agency

Given that both parties are located within the same legal jurisdiction, a local development agency is subject to legal action for contract breaches. This choice, meanwhile, is incredibly pricey. A basic SaaS platform idea’s MVP construction may require a limitless amount of money.

Cost of SaaS software development 

How to find a reliable SaaS software development partner

Finding the proper development team is critical to developing an effective SaaS service. Even if you have the greatest profitable idea since technology became widespread, the wrong team can ruin it. Let’s look at some more helpful hints for locating a trustworthy partner:


Before hiring a SaaS software development team, evaluate their previous experience and understanding of the complexity of Software-as-a-Service. Having a perfect SaaS software development solution requires more than just software engineering methods; the team must also understand the market.

Choose only a team that has demonstrated a thorough understanding of your business strategy as well as technical knowledge of Software-as-a-Service.

Work Portfolio

You will receive potential offers from development teams that all claim to be the finest. However, by perusing their portfolio and looking at their list of completed projects, you can learn more about what the team can provide for you. Be precise about past cloud computing efforts while talking about SaaS.

Effective SaaS built

In addition to the portfolio, pay attention to the past Software-as-a-Services it built and, if any, the success rate of such projects. If there are none, take other projects into account and their capacity to build one.

As such, SaaS software development is advantageous for your company. Though a SaaS application model offers a wide range of benefits, keep in mind that a reliable cloud-based SaaS solution handles security and scalability, provides ease of use along with the potential to take advantage of economies of scale.

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