How the Software-as-a-Service (SaaS) Development Cycle Works

Gone are the days when companies have to rely on courier services or office supply stores to acquire software. Thanks to the advent of SaaS cloud computing, software installation and storage space requirements have become a thing of the past.

The advent of Software as a Service (SaaS) has brought about a revolution in the industry, making it more accessible and user-friendly by doing away with the need for physical software installation. With the use of cloud computing, users can enjoy greater ease and efficiency. With an estimated compound annual growth rate (CAGR) of 18%, which is projected to reach $623 billion by 2023, it is apparent that the future lies in the cloud.

In this essay, we will take a detailed look at the system, delving into its advantages, disadvantages, and development process.

SaaS (Software as a Service) Development: An Overview

When using Software-as-a-Service (SaaS), a single cloud provider is responsible for developing and maintaining the cloud-based software. Moreover, the software is automatically updated and made available to users on the web, for a fee based on a monthly subscription. The cloud service manages every aspect of the software, from servers to applications, middleware to security.

Subscribing to Software-as-a-Service (SaaS) offers several advantages over using on-premises systems and maintaining software, such as reduced costs, increased accuracy in forecasting the total cost of ownership, and a shortened time for installing, expanding, and upgrading business solutions.

The first Software-as-a-Service (SaaS) solutions appeared in the early 2000s, with the goal of resolving a single business problem. Since then, the SaaS model has undergone significant development and modification.

The modern cloud suite may consist of different components, such as Finance, Human Resources, Procurement, Supply Chains, and even Commercial, Marketing, Sales, and Service solutions, integrated to form a cohesive system.

Other benefits of an advanced and all-encompassing SaaS package comprise of:

  1. Effortlessly streamlined and seamless operations.
  2. Highly flexible and easy to set up for personal use.
  3. Faster data transmission.
  4. Total security in the cloud.
  5. Analytic features are included in the system.
  6. Incorporation of cutting-edge technologies such as chatbots, the Internet of Things (IoT), and artificial intelligence (AI).

In a business setting, the most commonly used tools comprise of email services, calendars, and an array of software programs. Utilizing Software-as-a-Service (SaaS) applications helps companies focus on the costs associated with the programs their employees actually require. Netia Compute is an all-encompassing cloud service furnished by Netia, designed to handle vast databases and produce backups. Read our case study to understand how Cleer Tax & Bookkeeping chose Works as their development team.

The Life Cycle of Software-as-a-Service (SaaS) Development

In comparison to traditional software, the life cycle of a SaaS application appears quite distinct. Here are some of the stages:


The planning stage of a SaaS project is similar to that of any other product. First and foremost, a business-focused assessment of the project’s scope must be carried out. Critical thinking from the SaaS developers is crucial at this point to prevent any possible difficulties. The discussion should involve investors, managers, marketers, and architects.


The subsequent step is to test the platform to guarantee that its design and functionalities align with the project’s requirements and aid in its success. The platform should be capable of scaling up and being resilient in the event of an emergency.


During the planning phase of a SaaS project, it is crucial to make any significant decisions that could impact the project’s execution. All relevant parties should formally establish the project’s terms of reference. A comprehensive strategy and risk management plan should also be prepared to ensure the project’s success.

Membership with Fees

In the second step, registering with a cloud service is imperative, while making certain that final decisions regarding structure and cost are made. Careful consideration should be given to the subscription management approach. This stage also presents an opportunity to create backups and prepare for any possible disasters.


The Development phase is the lengthiest and should only take place once the previous phases have been completed. At this stage, the Development environment is set up, tests are conducted, and new features and security protocols are incorporated. Concerns related to the synchronization and testing of support services are also addressed.


After the construction phase is finished, the operational phase may commence. It is imperative to test the primary functions of the product and assess the proficiency of the staff in using them. It may be necessary to make further adjustments, rectify errors, and carry out a thorough check. These critical requirements should not be neglected.

By adhering to this schedule, the likelihood of successfully completing the task will significantly increase.

Can Switching to a SaaS Model Benefit Your Company and What Are the Advantages?

Here are several advantages your company can obtain through implementing a SaaS strategy.

Flexibility in Technology

In light of the ongoing pandemic, certain organizations have implemented a work-from-home policy, while others have resumed operations in their offices. It seems that the dependence on outdated technology is impeding workplace mobility.

Software, tools, and apps can be accessed by workers from any location and on any device through the SaaS cloud model.


Through the use of Software-as-a-Service (SaaS) technology, companies can save money by avoiding unnecessary purchases of programs, apps, or expensive software. There are also lower maintenance and upgrade costs since the business only invests in the software it requires.

Simplified Revision

This cost-efficient update is one-way and managed exclusively by the service provider. All customers are assured of having access to the most recent software version because of the inherent functionality of this SaaS offering.

User-Friendly Interface

The user interface for the SaaS program is compatible with smartphones, tablets, and desktop computers and is designed to be simple to use, removing the need for training. Additionally, the internal customization capabilities allow the organization to tailor the product to their specific needs.

Secure Filing System

SaaS eliminates the need for expensive off-site backup storage systems. Since all data is saved in the cloud, it may be accessed with the appropriate credentials, and any lost data may be recovered. You have complete control over setting and modifying the required storage capacity.


Data stored in the cloud using Software as a Service (SaaS) platforms is protected. In the event of a cyber attack, the server or computers may be targeted, but the data stored on them will remain secure.

Some Examples of Software as a Service

Here are a few examples of reputable and widely used SaaS products:

  1. Slack:

    Our instant messaging service enhances internal communication efficiency, allowing for improved productivity in companies globally.
  2. Trello:

    The Kanban method for project management has been used to create a tool that offers a wide range of features for you to track the progress of your projects and manage tasks with increased flexibility.
  3. Buffer:

    This platform was created to facilitate faster and easier interaction with social media. It may be utilized to enhance social media marketing efforts by scheduling posts in advance, monitoring their performance, and more.

Zoho, MailChimp, Google Drive, and Shopify are among the exceptional examples of products that employ SaaS.

Challenges when Developing Software for SaaS and How to Address Them

Selecting a development team, ensuring secure SaaS access, integrating payment functions, and maintaining system uptime remain the top four challenges in development.

The Primacy Team

A reliable partner goes a long way in achieving desired outcomes. The individuals listed below make up a strong SaaS development team:

  1. The Solution Architect acts as the “leader” of the team responsible for building the product’s framework.
  2. The Project Manager is accountable for critical interactions with external parties, including discussions, decisions, agreements, and so on.
  3. The main responsibility of software developers is to build software.
  4. DevOps is a team of professionals who work closely with the server and are accountable for integrating various components of the system.
  5. The system is currently undergoing a series of tests by the testing team.

At first glance, it is easy to determine if an individual has significant expertise or is a novice in their field. When hiring a highly skilled development team, they will be keen to conduct a thorough review of your product to deliver outstanding software.


Developers give top priority to making SaaS secure. They devote significant time and effort to encrypting data to prevent phishing attempts. All relevant international regulations regarding safety measures must be complied with.

Due to the complex nature of cloud security, it is advisable to entrust it to experienced professionals. Moreover, Cloud Workload Protection (CWP) and Cloud Security Posture Management (CSPM) can be advantageous in protecting primary access points and preserving stored data.

Integration of Third-Party Payment

For most businesses, this solution will be insufficient, and an extra payment processor will be necessary. Developers must guarantee a seamless payment process, which may require substantial time investment, including planning the service development, addressing integration-related matters, and performing both manual and automated testing.

The fourth feature is utilizing no downtime during deployment.

Concurrent user access to the system may cause difficulties. Our developers tackle this challenge by implementing a zero-downtime deployment approach that ensures all requests are completed efficiently.

There are alternative tools available to address this issue, but they are costlier.

Approaches to Developing Software as a Service

Various techniques can be used in software development. Our proficient team is capable of utilizing these approaches during the SaaS development process. Here are some of the methods we implement, accompanied by a brief description of each:

  1. Waterfall.

    Since the waterfall model is reliant on each phase’s success, the design team cannot move on to the subsequent development or testing process until the previous phase has been completed successfully.
  2. Agile.

    Continuous improvement of development and testing processes is crucial when using this software development approach. In contrast to the waterfall model, Agile methodology includes an additional phase of night-time testing to enable closer collaboration among customers, programmers, managers, and testers.
  3. Scrum.

    The subsequent stage of Agile methodology, which features sprint planning, retrospectives, and a postponed start time.
  4. Rapid software development.

    Templates that already exist are utilized to quickly build a prototype to speed up the development process.
  5. Iterative.

    A prototype is created on a smaller scale and then refined before being implemented at a larger scale.
  6. Spiral.

    The impact of each phase on the subsequent phase and the most effective way forward are tracked and evaluated during each development cycle.

Agile and Scrum, despite being the two most popular software development methods, are not interchangeable, and both have their unique advantages.

Choosing a Technology Stack for SaaS

To achieve effective development and a sturdy software infrastructure, it is crucial to choose a suitable technology stack. While there is no definitive answer to the most appropriate option, the selection should be based on corporate requirements, external factors and past performance. Software-as-a-Service (SaaS) generally employs a range of technologies.

  1. Despite being relatively new, experts predict that Artificial Intelligence (AI) and adaptive intelligence will be significantly integrated into Software-as-a-Service (SaaS) applications in the corporate sector.
  2. Artificial Intelligence (AI) and Machine Learning (ML) will play a critical role in realizing fully autonomous IT management by enabling less human-dependent IT governance.
  3. The growing significance of technologies like chatbots, the Internet of Things, and blockchain in the digital realm is undeniable. Potential vendors are already investigating possible applications of these technologies in their Software-as-a-Service (SaaS) offerings.

All of these technologies will simplify business operations while also improving customer satisfaction.

Horizontal or Vertical SaaS Solution: Which is Better?

Initially, the Software-as-a-Service (SaaS) model was developed to hasten the implementation of solutions designed for individual departments. However, it is now being widely adopted by companies that need complete oversight of all their operations.

Vertical software solutions are customized to cater to the demands of a specific market segment. These segments can include finance, retail, hospitality, or healthcare. Such software solutions are not aggressively promoted compared to horizontal alternatives.

Studies have found that customers are less inclined to stick with the horizontal type of SaaS solution owing to high client acquisition costs, inability to adapt to evolving market conditions, and inefficient organizational structures.

The customer-centric nature and ability to be customized to individual needs are reasons why Software-as-a-Service (SaaS) solutions are increasingly adopting the vertical solution model. This is in contrast to the traditional horizontal approach, which is more adaptable to multiple industries.


A Software-as-a-Service (SaaS) solution is a must-have for any successful business. It not only streamlines program development and maintenance for the firm and its customers but also provides cost savings that can be reinvested. Its user-friendly nature makes it a highly desirable option.

Based on the findings presented in this paper, Software-as-a-Service (SaaS) is poised to become the prevailing software development model in the coming years. This paper explores the benefits, processes, major challenges, and significant players in the application sector that have already embraced the SaaS approach.

If you are seeking to recruit an online software developer, you’ve come to the right spot. We can assist you in finding the ideal programmer for your requirements within two weeks. Please contact us for more details.

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