An ultimate guide to custom SaaS platform development.

SaaS Platform from Top to Bottom

SaaS platform building rapidly gains popularity among modern IT-connected business runners, appearing extremely profitable and promising. The majority of companies refuse standalone projects, as they require higher maintenance, including secure local servers, expensive hardware, and own IT-experts to support smooth program execution. SaaS cloud platforms promise to provide the services with no maintenance concerns, thus becoming extremely popular.

In this post, OpenGeeksLab will focus on what the SaaS platform is, market perspectives, challenges a business owner may meet, essential benefits, fundamental issues, and features to mind while custom SaaS platform development.

What Do We Call a SaaS Platform and How Does It Work?

The essential information you need to know about the SaaS-based platform.

Under Software as a Service, we commonly mean a software distribution model, which presupposes end-users getting access to specific tools, delivered and maintained by third-party service providers, remotely via the Internet. SaaS platforms are based on cloud technologies, so they should not be hosted locally.

SaaS-based platforms can deliver any services, including data streaming projects, office applications, social media, security systems, AI and machine learning software, e-mail, instant messaging tools, and many more.

Current Software as a Service Market State

Modern SaaS niche trends and tendencies research.

SaaS-based platforms have been experiencing a significant rise for the last four years, while the COVID-19 pandemic triggered it to develop even more rapidly. In 2020, the software as a service market size amounted to $158.2 billion, and it is predicted to grow up to $307.3 billion by 2026. The CAGR for the forecasted period ranges from 11.7% to 21.7%, according to different studies.

Huge providers, including Microsoft Corporation, Google, IBM Corporation, Amazon Web Services, Oracle Corporation, Cisco Systems, Dell EMC, and others, dominate the SaaS app development market so far.

Despite tough competition, the niche is wide-open to new players and innovative solutions, as the demand for cost-effective cloud platforms only grows. Though to enter software as a service market segment and make your custom platform competitive, you must be ready to meet and fight particular challenges.

Challenges to Overcome While Dealing with SaaS Platform Development

Main problems you may meet while SaaS software development.


SaaS platform development is associated with several challenges that you must be ready for. The typical difficulties a platform runner meets include:

1. Scalable Architecture

Building a scalable model is a vital step for your business development. Think over an adaptive architecture model that will adjust to your needs. Besides, scalable SaaS startups are more likely to cover a broader target audience and pay-off in a shorter time.

2. Data Security Issues

Ensuring proper data security is another challenge one meets during the SaaS development process. It would be best to consider all ins and out of security to assure your customer’s personal information, payment details, and corporate data is safe. Otherwise, you may run into significant troubles, be subjected to penalties, or even lose your business.

3. Reliable Services & Image

Encouraging client trust and loyalty is a long-lasting and painstaking process. You must deliver reliable services for customers to know your solution is always working and accessible. Bet on proven cloud technologies like AWM to make your project stable and protected. Besides, do not forget about enhancing your customer trust via positive brand image building and timely UI/UX improvements.

4. Proper Monetization Strategy

Adopting a suitable monetization strategy can be challenging while SaaS application development, as it highly depends on a target audience and business objectives. Many modern companies go for cloud solutions because of their cost-effectiveness. On the other hand, toll providers must find an optimal price solution to cover the maintenance budget and be acceptable for clients.

SaaS management platforms are worth fighting for, as having overcome all the challenges, one will get a wide range of benefits.

Main Advantages Your Business Gets from SaaS-Based Platform Development

Key benefits you will receive from SaaS application development.

Going for custom SaaS development offers many advantages. Let’s unlock the core benefits.

1. Multi-Tenancy Services

Adopting a multi-tenant SaaS model, you can distribute the same product to several users, changing only custom settings like the interface, selected fields, permissions.

2. High-Level Compatibility

Seamless integration with other tools allows to reduce operational expenses and simplify the maintenance process, as you should not rebuild your project every time after other applications have been changed.

3. Adaptiveness

The scalability of SaaS platforms ensures your company being adaptive to changes. You can easily manage the company’s size and budget, depending on current business objectives or target audience demands.

4. Cost-Effectiveness

SaaS solutions stand as a cost-effective option for both service providers and their users. It allows significantly reducing budget expenses onto hardware and maintenance, as many customers are served to utilize the same software and servers.

5. Easy Upgrades

Implementing a multi-tenant SaaS model, you simplify the upgrading process as well, as there is no need to upgrade every application separately. The updates downloaded onto the shared server become accessible for all users at once, sparing your time and effort.

However, to gain the benefits listed above, one must consider several essential KPIs of SaaS platform development.

Essential Issues to Mind Before SaaS Platform Development

Key points of interest while engaging in SaaS development.


Before starting a SaaS platform development proper, an entrepreneur must consider core points of interest in the niche:

1. Concept Validation & Market Analysis

Designing a concept of own SaaS platform, mind idea uniqueness, and its validation. Conduct profound market research, competitor, and SWOT analysis to understand whether your idea is viable and competitive. If necessary, change your initial concept providing a UVP (Unique Value Proposition) to your target audience.

2. Architecture Type

Choosing the architecture type stands among the most critical steps you must consider during application development. It would be best to decide between single-tenancy (a single software infrastructure serves one client) and multi-tenancy (a single software infrastructure serves many clients) architecture. The first one is considered more safe and secure, though relatively expensive, while the second one is cheaper but possessing a lower data protection level.

3. User Data Protection

Customer information security stands among the top issues you must consider during SaaS development. Ensure your project follows all current data security guidelines, including GDPR (if distributing products in Europe) or FERPA/CORPA (when partnering with the US-based companies) when dealing with user sensitive information. Ensure your SaaS solution uses the latest TLS and SSL encryption protocols and is protected from DoS/DDoS threats.

4. Scalability Issues

Making a SaaS solution scalable means defining its development possibilities. Unless you include scalability as a priority of your application development process, you will not get the desired results as soon as you expect. The ability to adapt is vital while talking about a successful SaaS cloud platform as it must adjust to current customer needs and regulate maintenance budget in case of downtime.

5. Improved Accessibility

SaaS management platforms offer more accessibility opportunities than on-premise solutions, thus being more convenient for companies or employees’ growing mobility. Develop tools that enable clients to access the service and user/company account from any device, irrespective of its physical location.

6. External Services Integration

Modern companies are usually not limited by one software type satisfying their business needs. As a SaaS platform runner, you must ensure your SaaS solution integration with other tools delivered by third-party providers.

7. Design Guidelines

Do not forget about design issues during your own SaaS software development. Take care of your SaaS platform’s intuitive, user-friendly interface corresponding to modern UI/UX standards. The properly-developed design will encourage customer trust and positively influence your brand building.

8. Suitable Monetization Model

Designing a proper monetization model is vital for your startup to pay-off and become competitive in the modern market. Align it with your primary business objectives and target audience to understand how your service will bring more profit.

9. Reliable Software Vendor

Partnering with a reliable software development company is vital while SaaS platform development. Ensure you have chosen the right development team with the SaaS development niche’s expertise and study its portfolio to understand whether your objectives correspond with a company’s policy. Pay additional attention to project planning, discuss deadlines, and milestones ensuring the final product being ready on time.

10. Proper Feature Set

Implementing a proper feature set is of primer importance during application development. Bet on the features perfectly suit your business needs and ensure your SaaS platform provides a unique user experience for end customers.

Fundamental Components a Well-Developed SaaS Platform Must Possess

Must-have elements to include in your SaaS solutions.

A properly-developed SaaS cloud platform must offer essential elements. Let’s disclose seven must-haves.

1. Integration with Other Services

Ensure your custom SaaS platform integrates with the customer company ecosystem, shares and interprets data obtained from other projects, supports infrastructure, and improves workflow. Make sure your solution supports current third-party projects and is compatible with legacy systems frequently used by enterprises

2. Accessibility from Diverse Devices

Employees are no longer tightly bound to their offices; many of them are highly mobile or work remotely, making the SaaS solutions adaptive and accessible from diverse places and devices as long as there are an Internet connection and account access.

3. Microservices

Bet onto microservices while owning SaaS software development. This way, microservice technologies reduce processing time, enhances project flexibility and adaptivity, and provides a better user experience.

4. Easy Onboarding & User Support

Cloud platforms become more complicated, so users may get stuck on some innovative component or update you have included. To avoid possible misunderstanding, develop step-by-step guidelines for your customers to get the expected results by using certain features.

5. AI Integration

AI and machine learning integration occupy top positions in popularity ratings. Implementing intelligent technologies into your cloud management platform significantly helps in the optimization and automation of selected data processing procedures.

6. Individual Success Program

Even if your project has a multi-tenancy architecture, do not forget about customization. Make your customers feel unique with individual success programs, developed as advice following customer objectives or actions on the platform.

7. Improved Authorization & Account Management

Modern users commonly are not limited to one application while working, so they need to switch between diverse applications and reenter the system every time they turn back. Let your clients stay logged in while using other apps or design a smart account management system offering an easy, intuitive authorization process.

Building a proper custom SaaS platform is only a half-way to success, as the next essential step is to choose a monetization strategy that will perfectly suit your business case.

Main Monetization Strategies to Make Your SaaS Cloud Platform Profitable

Four basic ways to get maximum profit out of your SaaS-based platform.

There exist four basic monetization strategies for making SaaS solutions profitable:

1. Advertisements

The ad-powered monetization model presupposes all the features being supplied for free, though a platform runner gains profits for showcasing advertisements to software users. This monetization strategy stands among the most popular ones, as it allows attracting more customers (because of free tools) and get money at one. However, the retention rate on ad-powered platforms is relatively lower in comparison to ad-free tools.

2. Freemium

With a freemium monetization strategy, a service offers a limited set of free features and a full one for subscription or other additional costs. As well as an ad-powered one, the freemium model allows reaching high user engagement rates allowing everyone to use minimum needed functionality, though for professional domain people buy a full-scope feature set.

3. Subscriptions

Subscription-based monetization strategy means platform providing the full-scope functionality for a limited period. This system appears convenient for users demanding specific SaaS solutions seasonably or for those who do not want to pay for months of downtime.

4. One-Time Purchase

The one-time purchase model seems less popular than other variants, as cloud platforms require regular updates and maintenance. Besides, SaaS solutions will turn expensive for a one-off payment due to the complexity of technology.

Make Your Business Better Right Now with a Custom SaaS Platform

SaaS tools have rapidly invaded the modern software market, placing cloud technologies among the top popular digital business spheres. Designing a well-thought-out SaaS-based platform alone may turn a real challenge for your company, though we are always ready to lend a helping hand.

Our development team has vast expertise to build a custom SaaS platform perfectly suiting your business needs. Possessing all the necessary tools for SaaS software development, we are always ready to provide you with a customized solution that will make your customers amazed with its convenience and functionality. Do not wait to use your chance right now! Contact our company or consult our leading experts, who will dispel your doubts and fears within 15 minutes.

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