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The Ultimate Guide For SaaS Business

What is SaaS?

SaaS Software as a service spares the hassle of development and hardware. It delivers software online as a service without the troubles of installing and updating web or mobile apps. SAAS allows users to reach data over the internet. SAAS is sometimes called on-demand, hosted or web-based software. It is directly connected with cloud-based computing. It works when a cloud provider or a third-party provider hosts apps and makes them available for access through the internet.

How does SaaS work?

SAAS uses a multi-tenant architecture. This multi-tenant system where all users are on the same infrastructure and platform with the same code. By using this method, A lot of time and effort is saved instead of developing numerous versions of a code. Also, will give developers easier and faster chances to solve any error. In a nutshell, the app will be running on the host servers serving each user all at once.

SaaS vs. IAAS vs. PAAS

SaaS, IaaS and PaaS all lie under the category of cloud host services. They all Have cloud providers that deliver data to users via the internet.


Infrastructure as a service is often used by companies where they can outsource data. It includes storage, servers and other services. It allows companies to buy data. E.g Microsoft Azure.


PaaS stands for platform as a service which offers a software development platform on the internet. Companies and developers opt for PaaS so they would go on with their development processes without having to worry about storage or operating systems. E.g. OpenShift.


Software as a service depend on the internet to provide their users with their services. It uses a third-party cloud host to provide the users with the data without them having to download or update the software. E.g. Netflix.

Advantages of SaaS

  • No Software Download
  • Easy Customization
  • Accessibility
  • Reasonable Cost
  • Mobile friendly
  • Automatic Updates
  • Data Access

No software download

What gives SaaS an advantage is its lack of software update. Users and companies’ main reason of opting for SAAS is that downloading software is no longer needed. So, any user can access the service without the hassle of downloading the software.

Easy Customization

The way SaaS is developed makes its customization a breeze. It can be customized without any harm happening to the infrastructure. also makes it easier to integrate with other applications. It is also important to know that upgrades never affect the customization of the software. 


Easy access couldn’t get better when it comes to SaaS. Any user with an internet connection would immediately have access to the service. It ensures every user’s access to their required data.

Reasonable Cost

SaaS is a great option instead of buying a new software. Users can subscribe and use the service then cancel and stop using it. SaaS has a great advantage where the cost is rises or goes down according to the usage rate.

Mobile friendly

SaaS is your best friend when trying to mobilize your workforce. SaaS can be accessed through any device that has access to an internet connection. This being said, SaaS does not need ios and android app development. Also, doesn’t need separate mobile and web development. It can be accessed through any mobile phone or any device. It also spares you the security risks when it comes to mobile development. Relatively, A device’s version or type won’t be an affecting factor when reaching for data using SaaS.

Automatic Updates

SaaS save tech companies and customers’ great time and effort when it comes to updates. SAAS are automatically updated without the user having to deal with downloading a new software.

Data Access

The whole idea of SaaS revolves around saving app data in a cloud. This being applied, the user can rarely experience the loss of their data if their device fails. This also ensures that the user can access their data from any device.

Disadvantages of SaaS

  • Loss of control
  • Vendors switch
  • Security

Loss of control

Users can often face errors beyond their control. When vendors face any errors or security breaches, it directly affects the users’ ability to use the app. SaaS users also can’t control the updates. Automatic updates have their pros and cons. The cons are that when vendors update the version, users don’t have a choice.

Vendors switch

Changing your vendor can be such a headache. Transferring those huge amounts of data will never be an easy task. Vendors using complex technologies and datatypes will only make this process harder.


In the case of SaaS, data is handled by a third-party provider. This makes data security a crucial matter. Identity and access should be taken seriously so that data can’t be accessed by someone else.

How to start SaaS project

  • Develop a solution
  • Market research
  • Pricing
  • Prototype
  • Establish the Brand
  • Financing
  • Choosing your team
  • Marketing

1. Develop a Solution

To start off with SaaS development, you have to be facing a problem that you found a smart solution for. SAAS is based on solving an issue that your personally face. This gives you a clear idea of how efficient the solution you are presenting.

2. Market Research

A good market research is what is going to give you insurance of the success of your project. You can start off by conducting costumers’ opinions. This can give you a view of whether your SAAS is meeting the customers’ needs or you need to change your approach. After that, market research is a must. Market research will be giving you the honest verdict of should you invest in your idea. You have to research about your competitors, what approaches they opted to and what technologies they use. You have to make sure that your idea and your plan are going to be competitive in the market.

3. Pricing

There are various pricing models. You have to choose the model you are using wisely; gaining your desirable profit. SaaS in general is based on subscriptions. This can be maintained in several ways: First, subscriptions where your users choose whether they want to choose between annual or monthly subscriptions. Another idea is to make your service free but accepts ads. Another option is to make some feature free and more advanced ones for an additional fee.

4. Prototype

To stay on the safe side, it is always advised to start with a prototype. This approach is going to give you an idea of how helpful and successful your SaaS solution is. Feedback will give you a better idea of what modifications can be done to your project.

5. Establish the brand

After conducting your market research, you should have gained a vision of how competitive the market you are getting into. To establish your project and make it stand out from others you have to focus on your project as a brand. Firstly, your main focus should be your services’ quality. It’s the main factor that can establish your brand. Finally, you should focus on branding and design.

6. Financing

Financing your project can be one of the hardest steps of the way. There are several steps of the way. First one is bootstrapping where you solely fund your project. Different option is looking for an investor whom you could convince invest in your SaaS idea.

7. Choosing your team

When choosing the team that is developing you sass whether it is a software development company or your own developers, making sure you are on the same page is a must. Having the same visions as your team is the key to the success of your business. Also, having an experienced team will give you better SaaS solutions and great UX/UI designs.

8. Marketing

A clever marketing plan cam give your SaaS project a boosted start. You should build a loyal base of users first. Social media and Quora forms are a great start. By this, you are attracting tech enthusiasts to give your SaaS project a try. After using this approach, you can do paid internet ads. Also, free trials strategy can be really helpful. It will attract users to try out your app.