{"id":5715,"date":"2025-03-05T06:57:59","date_gmt":"2025-03-05T06:57:59","guid":{"rendered":"https:\/\/www.goodcore.co.uk\/blog\/?p=5715"},"modified":"2025-03-05T06:57:59","modified_gmt":"2025-03-05T06:57:59","slug":"the-essential-guide-to-software-as-a-service-saas-development","status":"publish","type":"post","link":"https:\/\/www.goodcore.co.uk\/blog\/the-essential-guide-to-software-as-a-service-saas-development\/","title":{"rendered":"The Essential Guide to Software as a Service (SaaS) Development"},"content":{"rendered":"

These days, software applications are everywhere. From mobile phones and tablets, to laptops and desktops; it\u2019s easier than ever to access and use software. But, why? It can in large part be attributed to SaaS – a software model that has exploded in popularity over the past decade. If you want to find out more about SaaS and how to develop a SaaS-based software<\/a> application of your own, read this guide now.<\/span><\/p>\n

What is SaaS? A definition<\/span><\/h2>\n

What exactly is SaaS? We appreciate that without a solid definition, it can seem a rather nebulous and vague term.\u00a0<\/span><\/p>\n

So, here\u2019s one of the commonly agreed upon definitions of SaaS:\u00a0<\/span><\/p>\n

\u201cA cloud computing service model where the provider offers use of application software to a client and manages all needed physical and software resources\u201d1<\/sup><\/b>.<\/b><\/p>\n

Another definition of software as a service has been agreed upon by the National Institute of Standards (NIST). This institute defines SaaS as:\u00a0<\/span><\/p>\n

\u2018The capability provided to the consumer is to use the provider\u2019s applications running on a cloud infrastructure. The applications are accessible from various client devices through either a thin client interface, such as a web browser (e.g. web-based email), or a program interface. The consumer does not manage or control the underlying cloud infrastructure including network, servers, operating systems, storage, or even individual application capabilities, with the possible exception of limited user-specific application configuration settings\u20192<\/sup><\/span>.<\/span><\/p>\n

If you\u2019ve read our <\/span>guide to software development<\/span><\/a> then you\u2019ll know that application software is one of the two main types of software (the other being operating systems).\u00a0<\/span><\/p>\n

Application software can take myriad forms, but their underlying job is to perform specific tasks on behalf of a user. Prominent examples of application software include word processors (such as Microsoft Word) and graphic design software (e.g. Adobe Photoshop).\u00a0<\/span><\/p>\n

Traditionally, in order for an individual or business to use a piece of application software, they would first need to actually buy a physical piece of software. This would involve purchasing a physical CD-ROM disk or a set of 3.5-inch floppy disks (or if we look even further back 5.5-inch floppy disks or magnetic-tape data storage that took the form of cassettes or cartridges) from a computer shop.\u00a0<\/span><\/p>\n

Having purchased the application software in physical form, the individual\/business would then need to install it locally on their own hardware (e.g. a desktop computer or laptop). As we\u2019ll see later in this article, this has a number of drawbacks which led to the widespread adoption of SaaS applications.\u00a0<\/span><\/p>\n

In contrast to this, <\/span>SaaS allows users to access an application over the Internet – without the need to purchase and install the application locally on their own hardware.\u00a0<\/b><\/p>\n

\"Cloud<\/p>\n

This is the crucial distinction between SaaS applications and older, physical forms of application software.\u00a0<\/span><\/p>\n

To help you understand this further, and grasp the true meaning of SaaS, please consult the table below:\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Feature<\/b><\/td>\nTraditional Application Software<\/b><\/td>\nSaaS Application Software<\/b><\/td>\n<\/tr>\n
Deployment<\/b><\/td>\nInstalled locally on your computer or server<\/span><\/td>\nAccessed over the Internet via a browser<\/span><\/td>\n<\/tr>\n
Accessibility<\/b><\/td>\nLimited to individual computers or a local network<\/span><\/td>\nAccessible from anywhere (and any device) with an Internet connection<\/span><\/td>\n<\/tr>\n
Cost Model<\/b><\/td>\nOne-time up front licencing fee<\/span><\/td>\nSubscription-based (can be monthly or yearly)<\/span><\/td>\n<\/tr>\n
Maintenance & Updates<\/b><\/td>\nHave to be handled by each individual user (or in-house IT team)<\/span><\/td>\nHandled by the SaaS software provider<\/span><\/td>\n<\/tr>\n
Scalability<\/b><\/td>\nCan require the purchase of additional licences, hardware and time spent installing the new software<\/span><\/td>\nSaaS apps can be easily scaled<\/span><\/td>\n<\/tr>\n
Customisation<\/b><\/td>\nTraditional application software can be highly customisable to individual\/business preferences<\/span><\/td>\nCustomisation may be more limited depending on the SaaS software provider<\/span><\/td>\n<\/tr>\n
Data Storage<\/b><\/td>\nTraditional software apps typically require data to be stored locally on the user\u2019s hardware<\/span><\/td>\nData is stored on the app provider\u2019s cloud servers<\/span><\/td>\n<\/tr>\n
Security<\/b><\/td>\nUser is responsible for downloading and installing security updates\/patches<\/span><\/td>\nSaaS app provider is responsible for security<\/span><\/td>\n<\/tr>\n
IT Resources<\/b><\/td>\nCan require significant IT resources for installation, updates etc<\/span><\/td>\nSaaS software often requires minimal IT resources<\/span><\/td>\n<\/tr>\n
Internet Dependency<\/b><\/td>\nCan function offline<\/span><\/td>\nRequires as stable Internet connection (but, certain SaaS apps now have offline functionality)<\/span><\/td>\n<\/tr>\n
Ownership<\/b><\/td>\nOnce a licence fee has been paid, the user can own the software in perpetuity<\/span><\/td>\nUsers typically subscribe to SaaS apps rather than owning them. The provider retains ownership<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Today, SaaS is now arguably the dominant form of software with Fortune Business Insights suggesting that the SaaS market was \u2018valued at USD 266.23 billion in 2024. The market is projected to grow from USD 315.68 billion in 2025 to USD 1,131.52 billion by 2032, exhibiting a CAGR (Compound Annual Growth Rate) of 20.0% during the forecast period\u20193<\/sup><\/span>.\u00a0<\/span><\/p>\n

In short, SaaS is <\/span>big business. <\/b>If you\u2019re thinking of developing a software application for your own business (or to retail to other businesses or individuals) then you should consider offering it in the form of software as a service (SaaS).\u00a0<\/span><\/p>\n

The other names for SaaS<\/span><\/h3>\n

Although this isn\u2019t a particularly common phenomenon, you may see SaaS referred to under different names.\u00a0<\/span><\/p>\n

Some of these alternative names for software as a service (SaaS) include:\u00a0<\/span><\/p>\n