What is a SaaS Application? (Challenges, Process, Advantages, and Trends)

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Bhargav Bhanderi
Bhargav Bhanderi
Web Evangelist
19th October 2022 15 mins read

Quick Summary –  The SaaS market is expected to grow by $716 billion by 2028, and half of the world’s digital businesses operate on the SaaS model. Such popularity is dictated by robust features like security and scalability that bring outstanding benefits to all users. Moreover, SaaS applications also pose a few challenges, and numerous trends are worth discussing. Thus, it is crucial to observe all the aspects with the help of the expert team. 

Each business faces the same challenges of generating revenue, growing, and enhancing customer satisfaction. Recently, companies have been adopting different approaches to achieve these goals, especially with software at the core of business success. It is easier for giant enterprises and companies to connect with their potential clients via SaaS application development.

Thus, businesses expect software solutions to help boost productivity, reduce cost and enhance the bottom line. And that’s where software-as-service (SaaS) comes in. SaaS is a popular trend because it enables businesses to reduce IT costs and increase flexibility. So much that 80% of companies will switch its system to SaaS applications by 2025.

Developing SaaS applications and outsourcing SaaS development proves best to minimize the risk and deal with common SaaS development challenges. Even with the projected SaaS growth, some companies’ business leaders are still wondering how SaaS software can help grow their operations.

All these questions are addressed in this comprehensive guide to SaaS applications. The aim of this article is to assist you in understanding the advantages, process, trends, and challenges of developing a SaaS application. Now let’s get the ball rolling.

What is a SaaS application?

According to Salesforce, “Software as a service is a way for transferring applications over the internet – as a service.” It allows your company to host its applications or products available to the customers. A SaaS application is software users can access through the internet and personal network without installing other applications. 

What is SaaS Software?

SaaS software is a distribution model in which a cloud service provider hosts the services. It is also called “on-demand software.” The software offers companies significant benefits like compatibility, accessibility, and operational management. Software as service is a software licensing and delivery model in which software is licensed on a subscription basis and centrally hosted.

The SaaS delivery model is enabled by multi-tenant architecture in which the service provider will distribute numerous versions of the same software from a single-player server. Each business has its version of the SaaS application with associated customization, control, and data but from a single shared code base. 

Why do users choose SaaS applications_

Types of SaaS Applications

SaaS applications serve their solutions to all business processes, whether small or large. However, some primarily focus on enterprise–level project management solutions, while others concentrate on specific industries and offer specialized tools to medium and small businesses alike. 

In reality, there is not so much variety available in business software. Now, the business can explore specific SaaS products for nearly any area of business practice. Some of the common types of SaaS applications available include:

Types of SaaS apps

1. Enterprise resource planning (ERP)

The system helps manage every business process in real time and is suitable for large organizations. 

2. Communications platforms

Sending a quick message and sharing documents to enhance team collaboration based on various locations. 

3. Customer relationship management (CRM)

These applications allow the organization to manage customer information, track sales, and automatic marketing functions. 

4. Data management

A SaaS application helps in analyzing and securing a company’s data. 

5. Project management

SaaS products offer end–to–end project management solutions like composing plans, listing requirements, and tracking progress concerning deadlines. 

6. Email marketing software

It enables the organization to maintain customer communications, build loyalty and increase brand recognition and sales.

Why it is essential to have SaaS development solutions

The best way to understand SaaS importance is by thinking about the bank, which protects each customer’s privacy and provides reliable services. Many businesses rely on SaaS, which is more than a trending buzzword.  

Here are some significant reasons why SaaS applications are crucial for business. 

1. Speed

SaaS application is pre-installed and configured. The vendor can provide the server on the cloud, which deploys within a few hours. The user can immediately, after installation, use it also, evaluate software functionality, and do proof–of–concept. However, it enables smooth migration between various versions. 

2. Scalability

SaaS solutions reside in the cloud environment, making them scalable, and users can use them per their requirements. Furthermore, it enables flexibility to connect with other SaaS, an offering that turns an additional set of components, selects the delivery model, and alters it as per business needs. 

3. Customization

SaaS applications are easily customizable and swiftly connect with other software like Gmail, Dropbox, and any software. It enables the users to work on more than one document or module. 

4. Security

Data security is one of the company’s precious assets and is a heavily invested industry. SaaS providers will heavily invest in security, expertise, technology, and maintenance. The providers are knowledgeable and experts in using the tool and creating reliable security systems. 

Cloud-based vs. web-based apps

With the advancement of technology, the clear lines between cloud-based vs. web-based applications have blurred. Both applications have their benefits and shortfalls. But we can say that cloud-based apps have a higher preference in the current market because they offer flexibility. Moreover, it provides ease when it comes to changing devices.

Usually, people change their devices yearly and systems a bit less frequently. Thus, it becomes tough to transfer the whole data multiple times. People want the data to be processed quickly without any errors. 

On the other hand, web-based applications also have their positives as they offer better security and various large organizations prefer them for transferring sensitive data.But with time, the cloud app will catch up soon as well. 

Overall, cloud apps are more scalable, robust, and flexible as they tend to manage all the complex business processes efficiently. 

SaaS MVP development

What is a SaaS MVP?

MVP stands for Minimum Viable Product. It is a working prototype that includes all the essential features you want in the final product. MVP provides an opportunity to collect all the data from users about how they interact with development.

Moreover, it enables you to understand the pros and cons before launching the product and service. It is pretty popular in the startup business. 

Why is MVP (minimum viable product) a great idea?

A long list of benefits comes with building a minimum viable product before committing to the full scope of your project. 

  • It is a fantastic tool for early testing. Depending on the observation, it helps you to create a better plan. Also, you can use it to design a strategy that enables you to expand the business. 
  • It enables you to change and remove certain features without wasting resources. You can learn about users’ behavior and market fluctuations. 
  •  It makes it easy to pivot and cost-effective as you shift your focus and change the core features of SaaS Applications.

Why does your startup need to build an MVP for SaaS app development?

MVP is the perfect choice to make while starting your startup journey. Thus, there are three main reasons:

  • It is affordable. An MVP can help you to save money and stop wasting time.
  • This process suits business owners and helps determine if your vision aligns with the market’s demands. 
  • It is easy to use. Essentially, it simplifies the MVP process by solving a specific problem. 

SaaS MVP development Cost

Always remember that your initial product should be as simple as possible. Making it complex in the beginning will increase the development cost. So, no need to rush toward perfection. An entire innovation and complexity of the cost of SaaS MVP development will base on the roadmap use cases and business process automation.

Thus, hiring a SaaS application development company with a handful of experience is an ideal option. 

SaaS development challenges

The SaaS business concept is like selling digital services instead of products. But, it sounds like buying an online course in hard copy without constantly updating the software. Thus, SaaS is a good approach for both developers and users. 

The user can access the cloud service on the internet and use it online and offline without purchasing additional software. Therefore, the developers need to find a solution to keep the services sustainable and performing competitively in securing the data without any failures.

Now, developing SaaS applications is difficult; companies should consider the challenges before delivering the applications. Discover what you need to know about SaaS application development challenges.


Hire our developers to develop and run your SaaS application to scale your business

SaaS development process

The SaaS development process needs an equilibrium of good ideas, a practical approach paired with visionary thinking, dedication, and a bit of luck. Besides this, it is a unique process since SaaS are cloud-based, so it is essential to follow six steps:

1. Planning

A SaaS application’s success depends on using advanced technologies, researching the market, targeting the right audience, and considering its purpose and main features. If you can’t do the proper planning, then availing of SaaS application development company help is an ideal choice. 

2. Discovery phase

In the discovery phase, you need to organize the ideas for creating SaaS applications and produce a tonne of documentation. Both these will aid in the development process to make the product you need. In this phase, you will collect all the other information like software requirements, risk assessment, cost estimation, and many more. 

3. Designing application 

Before creating an interface for a SaaS application, it is imperative to decide its interface so it will quickly meet every customer’s needs. The SaaS application will work both on desktop and mobile, so the UX/UI designer will build the application accordingly. 

4. Designing architecture

The structure is the foundation of the application, and it will fulfill the stakeholder’s technical requirements. SaaS is cloud-based, meaning the information, services, and storage are stored online. 

5. Development and testing

In the first step, the developers will work on the front and back of the application. The engineers and quality assurance team are also working to check the functionality. 

The SaaS developer is not building the whole application at once. The developers start with a minimum viable product with all the significant features that meet the target audience’s needs. This iterative method of development is called Agile. 

The final stage is deployment. The deployment process includes creating a cloud-based SaaS application available to end users. 

6. App maintenance and further development

When MVP is available to end users, focus on gathering its performance. In this step, you should collect user feedback, evaluate, decide how to make improvements, and decide what new features you can add. Altogether your developer team will fix the bugs and make them error-free.


Read here: Things To Consider While Developing a SaaS Application


Advantages of SaaS application 

How does SaaS application development benefit your business?

Generally, the users will buy, manage and update the software by themselves. However, the benefits of the SaaS model not only lie in time–saving manner and other aspects like development, maintenance, and regular upgradation. 

SaaS offers complete control regardless of the user’s location. Thus, the customer can access the application anywhere in the world. In short, the business can leverage as many advantages of SaaS applications if it moves the infrastructure to the cloud.

Latest SaaS development trends

Why is SaaS (software as a service) so popular?

SaaS-based application symbolizes the transformation from traditional on-premise software deployment via vendors through the internet. Now, companies are no longer required to purchase, install and maintain complicated IT infrastructure; instead, they can easily plug–in and subscribe to vendors’ services to access shared readily available infrastructure via the internet.

SaaS’s popularity is because it brings access, simplification, and affordability so the organization can easily access it at a reduced cost. Due to these reasons, now multinational companies like SAP and Oracle are adopting the SaaS model. Check out these latest SaaS development trends.


Are you looking for a SaaS development company that provides top-quality SaaS development services_

How can we help you? 

Making a SaaS application is not simple. Creating SaaS applications has numerous benefits for both enterprises and end consumers. As a result, the procedure is made more accessible by picking the appropriate partner to work with. Therefore, by choosing the right partner by your side, the process becomes more accessible.

Creole Studios will help you to find solutions to all development challenges. Our SaaS application development services will ensure you get tailor-made solutions for your needs.

Contact us for a detailed consultation, and let’s kickstart your SaaS application development today!

Bhargav Bhanderi
Bhargav Bhanderi
Web Evangelist Web Evangelist at Creole Studios and veteran web programmer who looks like a dragon warrior but is in fact Master Shifu.

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