Steps to Building a SaaS Application in 2025 – Follow The Best Advice

Last Updated on May 22, 2025

Building a SaaS Application usually referred to as cloud-based software, is one of the top three emerging technology investment areas, according to nearly half (48%) of respondents to Gartner’s 2021 Emerging Technology Product Leader Survey. They are investing in data and analytics.

And with good cause. Web-based business apps are paid for on an hourly basis rather than all at once and don’t require difficult installations or binding contracts. The systems are typically more adaptable and cost-effective due to this.

However, many of the business executives we interact with daily at GoodTroopers continue to be curious about SaaS and want to know why it would be a wise decision for their organization. Thus, we are writing this blog to address all your questions regarding SaaS, and how you can build a SaaS app for your business.

So let’s get started without further ado.

What is SaaS?

Data can be accessed using SaaS, a technique of delivering software, from any device with an internet connection and a web browser. The servers, databases, and code that make up an application are hosted and maintained by software providers in this web-based architecture.

As long as there is an internet connection, this also implies that you can use it from anywhere in the world. It implies that users can utilize an app even while developers are always working on updates from a development perspective.

Because of cloud architecture, SaaS programs are so accessible. SaaS applications are designed and deployed on the private or public cloud, where they are also used to run.

With less than 2% specifically requesting on-premise software, the cloud-based approach has become so widespread that more than 60% of software buyers who call GoodTroopers solely want web-based goods.

There are two significant ways that SaaS differs from the conventional on-premise software delivery model:

•  SaaS implementations don’t need a lot of hardware, so buyers can outsource the majority of the IT tasks usually needed to maintain and fix the program internally.
•  On-premise software is often purchased through a permanent license that is paid upfront, whereas SaaS systems are frequently charged through a subscription model.

Users who utilize on-premise software can also pay maintenance and support costs of up to 20% annually. Software licensing, support, and the majority of other costs are often included in the annual or monthly subscription charge for a SaaS system.

Perks Of building a SaaS Application

If you shift your infrastructure to the cloud, you can enjoy various advantages. One thing you should know about SaaS software is that it will undoubtedly lower your prices. Let’s go over each benefit of SaaS for your company now.

1. Cost Effectiveness

For several reasons, using SaaS can save you a lot of money. SaaS eliminates the user’s requirement to pay upfront costs for purchase and installation, to start. Furthermore, continuous costs for upkeep and enhancements are no longer an issue. SaaS apps are conveniently downloadable and practically maintenance-free from the user’s end, saving significant sums of money on hardware resources.

Second, the pay-as-you-go SaaS pricing model enables companies to cut expenses because they only pay for the product they use and don’t waste money on unneeded licensing.

Given that smaller companies now have access to powerful software that is not only pricey but also impossible to buy through traditional methods due to financial restrictions, SaaS is a true blessing for small firms. The financial risk associated with pricey software is eliminated by the subscription-based structure of SaaS systems.

Business software can be deployed using the SaaS deployment paradigm, which manages IT infrastructure complexity without the need for time- and resource-intensive hardware maintenance. Your SaaS provider is in charge of handling all of this, giving businesses the freedom to select the ideal OS, free up resources, and divert them to other operations.

2. Time Management

Money is time. SaaS, fortunately, may help businesses save both. The only two things needed to install a SaaS program are an internet connection and the acquisition of a log-in to be installed. There is also no downtime or additional effort needed to update traditional software because SaaS companies handle the maintenance responsibilities related to it.

3. Scalability

SaaS’s extraordinary flexibility is another advantage. Because the SaaS application development supplier hosts the program externally, businesses can change their usage strategy without having to give advance notification. Because SaaS solutions are web-based, they may be accessed from anywhere around the globe. It is much simpler for home workers and people who operate at different locations thanks to SaaS, which allows users to access their data and work productively from anywhere.

4. High Compatibility

Updates can be very time- and money-consuming when installed conventionally. Version discrepancies across workforce members might cause compatibility issues. Consumers using SaaS technology just need to check in to obtain the most current upgraded version of their SaaS tool. The SaaS vendor is responsible for administering updates and upgrades, removing the need to install fixes.

The end user will always have access to the most recent version of the product thanks to SaaS. Software as a service eliminates compatibility and maintenance problems, allowing your company to focus more clearly and operate more productively.

5. Easy Management Such as Service, Backup Etc.

SaaS, in contrast to traditional software, offers the user a guarantee regarding the software’s functionality. Our subscribers are assured by teams at GoodTroopers that all applications will be accessible 99.5% of the time.

It is commonly known that weekly data backups using standard software unless an expensive automated solution is employed, maybe a very time-consuming activity. Because SaaS offers automated backups without user participation, it allows businesses to eliminate the task of data backups. This ensures data integrity.

6. Heightened Security

SaaS solutions, as opposed to conventional software, may typically keep an organization’s corporate information safer. For instance, to deliver our SaaS services, the IT infrastructure is contacted by several of our geographically dispersed data centers by GoodTrooper Partners. In the unfortunate case that a problem arises in one center, our services are nevertheless provided by the other data centers.

7. High Rates of Adoption

It is noteworthy that SaaS solutions are given online, therefore there is typically significantly less learning required because employees are already accustomed to using the internet for work. This leads to rapid acceptance by the workforce.

8. The Option of Trying It Beforehand

In relation to SaaS businesses, these companies offer free full-version trials of their products. This means that before investing in the systems, firms can take advantage of “prep time” to evaluate the solution’s viability and compatibility with their organizational initiatives.

Types Of SaaS Apps

Even if the SaaS industry is expanding, the SaaS business model is not a panacea for all sectors. For instance, SaaS isn’t what you need if you provide consumers with one-time services because they just won’t pay a monthly subscription for such a service. SaaS is ideal for users that need to utilize software frequently.

 It’s important to note that the SaaS model can be used effectively by both business-to-business (B2B) and business-to-consumer (B2C) web-based apps. Let’s look at a few illustrations.

B2B SaaS applications examples

The SaaS business model is popular in the B2B market. Here are just a few examples of app categories that can use this paradigm effectively.

• ERP programs

ERP (enterprise resource planning) systems are online programs that run in the cloud and provide a variety of modules for streamlining and automating internal company procedures. ERPs are complicated pieces of software that have modules for inventory, accounting, HR, and CRM, among many others. Oracle Cloud ERP and SAP S/4HANA Cloud are a few of the most well-known brands of ERP software.

• Tools for project management

Jira and Trello are two of the most well-known project management software in the world. You’ve heard of them. These cloud-based SaaS tools enable businesses to efficiently manage routine company operations.

• Tools for collaboration

When compared to 2019, the popularity of collaboration tools increased by 322% 2020 during the COVID-19 epidemic. Teams that haven’t been able to complete their daily activities offline since spring 2020 have turned to apps like Google Workspace, Zoom, and Slack as a primary source of efficient communication.

• Marketing Tools

Marketing is a tool that attracts customers to a business and is crucial for its growth. Businesses can streamline their marketing initiatives and measure success to strengthen their market position using social media marketing (SMM) platforms and marketing analytics solutions.

B2C SaaS applications examples

People all across the world use cloud-based services on a regular basis for activities like leisure and education, thus their benefits are not limited to corporations.

• Streaming platforms

Users from all around the world may view movies and TV shows on any device thanks to Netflix, an American streaming service. Another well-known streaming service that follows the SaaS business model is Spotify. Users may access songs from thousands of artists in dozens of genres by subscribing to Spotify, which is significantly less expensive and more practical than purchasing each album separately.

• E-learning Apps

Many apps for online learning market their services using the SaaS model. For instance, Duolingo gives customers the option to pick between its free and Plus programs. Additional features like ad-free content, unrestricted use of the platform, and mastery tests are available with a Plus subscription. There are subscription options on several online learning systems. For instance, Coursera provides unlimited access to its entire library for $59 per month, making it affordable for serious learners who may select any courses they like and earn certificates that are recognized around the world.

You will be required to go through a six-step process of bespoke software development if you intend to establish one of the kinds of SaaS platforms mentioned above or something comparable.

How To Build Your SaaS App In 8 Simple Steps

As a result, developing a SaaS solution is a challenging process that calls for a detailed product roadmap with a series of logical milestones. We’ll walk you through the development of a SaaS solution in the sections below. You can easily see the roadmap implementation for creating cloud-based apps there.

• Do Your Research & Create Your App’s Tech Specifications

Right now, your objective should be to gather as much data as you can about your potential consumers, rivals, trends, and emerging technology. You may create a really distinctive SaaS solution by combining insights into consumer needs with knowledge about the drawbacks of competitors’ apps.

If you’re thinking about establishing vertical SaaS business applications, research the trends that are emerging in the sector you’ll be targeting.

You will produce a comprehensive and detailed document at the conclusion of the first stage of the app development process that contains the guidelines for product development as well as the functional and non-functional requirements for your app. It might be the first phase of the development of your SaaS MVP.

• Define Your Revenue Channels

How exactly do you plan to profit from your SaaS product? You must have an answer to this before starting a large-scale software development project. This is one of the most important aspects of developing SaaS apps because it will set the structure of your software product, which cannot be readily changed.

Ads, subscriptions, and freemium models are the three most common ways to make money. Consider adding transaction and/or selling fees if you’re creating a cloud-based marketplace.

• Finalize Your Cloud Infrastructure Provider

You must choose a reliable cloud infrastructure provider if you want to serve multiple consumers while protecting their data. Choose recognized and tested vendors who can keep up the strongest encryption and data center. Your SaaS platform will run on, so pick a cloud service provider that can enable third-party integrations while delivering a high level of scalability, dependability, and performance.

• Have Your MVP Ready

This isn’t yet a fully functional cloud-based solution. A trial application version known as a Minimum Viable Product (MVP) has the very minimum set of features. Planning is necessary, nevertheless, in order to choose the features that will be part of your MVP. Use the features that will have the biggest impact while costing the least money. Right now, you want to persuade your investors.

• Test and Implement Changes

After an MVP has been released, get feedback. Asking customers directly about their likes and dislikes of your product is the greatest approach to finding out. Making adjustments to an app’s feature set or architecture at this stage won’t be as difficult or time-consuming as it would be later. The audience you pick for proof-of-concept testing can subsequently turn out to be early adopters of your app.

• Initiate the final product development

During this stage, your app development team will begin writing code using the tools, frameworks, and programming language of their choice. Scrum, Kanban, or Extreme Programming are examples of agile approaches that can be used to streamline and speed up development while maintaining adherence to specification requirements and ensuring quality.

The best practices of today advise including QA testing in each phase of software development. Additionally, keep in touch with your development team.

while you install your SaaS. Your objective is to continuously assess if you are on the same page and are accurately adhering to product standards.

• Promote Your App

While it is true that promotion should happen concurrently with creating your SaaS app, we have listed it as a separate phase in our list. You should already have a following of admirers waiting for the finished product by the time your first release appears in online marketplaces.

• Release & Maintain the App

Once all QA testing has been completed, your SaaS platform or online service is ready for release. User acceptance testing, the last step in the quality assurance process, will happen after you publish your app, so you’re not finished with QA just yet.

Your SaaS developers will be required to offer ongoing maintenance and application updates following the final release. If problems emerge, your users ought to be able to quickly contact tech assistance.

 

Frequently Asked Questions (FAQs) on Building a SaaS Application