SaaS Application Development: A 6-Step Guide

 / January 29, 2024

Imagine a world where software isn’t bolted to your computer, but floats freely in the cloud, accessible from anywhere, anytime. This is the magic of SaaS, a booming tech trend in today’s app industry. 

Are you dreaming of starting your own SaaS business? Or maybe you’re on the hunt for new tools to boost your tech stack? If so, this guide is your treasure map.

Through the Designveloper’s guide, you’ll understand:

  • Benefits of SaaS applications
  • Challenges faced by businesses considering SaaS development
  • Core features of SaaS applications
  • Considerations for SaaS success before you build

And noticeably, DSV will also recommend key tech stacks for SaaS application development and outline the steps to craft SaaS apps effectively.

But first, let’s take a quick look at what SaaS applications are.

What are SaaS Applications?

What are SaaS applications?

Software as a Service, commonly known as SaaS, is a software distribution model that allows users to connect to and use cloud-based applications over the Internet. 

These applications are hosted on the cloud and can be accessed through various web-enabled devices such as laptops, smartphones, and other Internet-connected devices.

The entire infrastructure, including the middleware, application software, and data, is also housed in the data center of the service provider. 

The service provider takes on the responsibility of managing the hardware and software, and with a suitable service agreement, guarantees the security and availability of the application and your data.

SaaS Example: Google Workspace

One known example of a SaaS app is Google Workspace. It offers various full-fledged software solutions that you can access and pay for on a usage basis from a cloud service provider. These solutions include comprehensive office suites (like Doc or Sheets), video and voice conferencing (Meet), email services (Gmail), cloud storage (Drive), and Google Calendar.  

Core Features of SaaS Applications

Before any SaaS application development, it’s crucial to understand the core features of SaaS applications. Different SaaS products require different functionalities. But they still include some of these core features as follows:

Core Features Description
Multi-tenancy As most frequently seen in SaaS, multi-tenancy is a software architecture where a single physical installation can provide multiple logical installations, each serving a dedicated user base.
Scalability SaaS apps are scalable because they can handle increased user demands, accommodate growing workloads, and maintain optimal performance levels as the number of users or requests grows.
Cloud-based delivery SaaS apps allow its customers to access and deliver data via the Internet from anywhere.
Data and app security SaaS apps protect sensitive data and limit what users can access. Its common security practices include data encryption, effective identity and access management controls, etc.
Data integration SaaS apps allow you to integrate data from other cloud-based software apps or, in some cases, even an enterprise on-premises system, to enable a consistent data exchange between them.
Subscription-based billing This is a model businesses use to ensure their customers pay automated recurrent fees for products and services offered. It covers various aspects, such as user onboarding, usage tracking, and invoice distribution.
Automated provisioning Automated provisioning refers to creating user identities and roles in the cloud applications that users need to access. Besides, this feature of SaaS apps allows you to maintain and remove these identities as their status or roles change.
Cloud infrastructure The cloud infrastructure supporting SaaS apps provides the security, scale, and performance for your business applications. It includes the database, operating systems, servers, routers, and firewalls (and more) required to process billions of application transactions every day.
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Benefits of SaaS Applications

Benefits of SaaS apps

Reflecting on the pre-COVID-19 era in 2020, SaaS might not have been the first thought that crossed your mind. However, as the pandemic unfolded, SaaS applications emerged as the unsung heroes. They enable companies to maintain connectivity, engagement, and productivity among their workforce at a cost-effective rate. 

Recognizing the immense potential of SaaS applications, more and more businesses are embracing them at a remarkable speed.

In line with this trend, the global SaaS market size is anticipated to witness a CAGR of 18.7% from 2023 to 2030. By 2025, it is also projected that 85% of business applications will be based on SaaS. 

To gain why SaaS applications are that popular, let’s explore some of their key advantages:

Cost Effectiveness

One visible benefit of SaaS is its ability to make complex enterprise applications, such as ERP and CRM, accessible and affordable for organizations. Especially when your business doesn’t have the resources to purchase, deploy, and manage the necessary infrastructure and software, SaaS apps are a big savior. 

Most SaaS applications can be operated directly from a web browser without the need to download and install any software, eliminating the need for users to purchase and install specific software.


As your business grows, so should your software. But with traditional models, scaling can be a painful dance with expensive servers and complex upgrades. 

SaaS takes the sting out of growth. Its elastic infrastructure bends and stretches with your ever-changing needs, seamlessly scaling up or down as your user base expands or contracts.  This flexibility allows your business to pay for only what you use, reducing wastage.

Automated Updates

SaaS apps are hosted by a third-party service provider that will handle all updates and upgrades. This, therefore, removes the hassle of your manual downloads and updates but still ensures your business always has access to the latest features.


SaaS applications are accessible from any internet-connected device, anywhere, anytime. They provide your team the flexibility for remote work and ensure business continuity.

SaaS apps give you more than these four benefits. Investing in SaaS application development can provide your business with a competitive edge, driving efficiency, and innovation. By leveraging the power of SaaS, you can focus on your business’s core competencies, leaving the IT complexities to the experts. This potential makes SaaS applications a worthy consideration for any forward-thinking business.

Considerations Before You Build SaaS Apps

You’re excited to dive into the process of SaaS application development? But hold on! There are several important considerations to keep in mind before you start building SaaS apps. 

Understanding these considerations can help you avoid unexpected pitfalls, ensure a smooth development process, and ultimately lead to the creation of a successful SaaS application. Let’s delve into these crucial factors:

Choose the Right Tech Stack

Choose the right tech stack

The tech stack you choose can significantly impact the functionality, performance, and user experience of your application. That’s why deciding on the right techs from the beginning helps your SaaS application development go seamlessly. 

At DSV, we understand the importance of choosing the right tools and frameworks based on project needs and requirements. So to facilitate your pick of tech stacks, let’s consider different aspects of a SaaS application as follows: 

Cloud Architecture

SaaS applications are often built on cloud platforms like AWS, Azure, or Google Cloud. These platforms offer scalability, availability, and resource management, which are essential for SaaS applications.

When choosing the cloud platform and its service provider, consider the following factors: 

  • Security: The provider should offer robust security measures to protect your data and your SaaS app. Consider security services that are well-matched for your application.
  • Price: Consider the cost of the services. Ask yourself: how much can you afford for the provider’s service?
  • Types of Services: Look at the range of services the provider offers. Do they offer all the services you need for your application? This could include file storage, hosting, database services, and more.
  • Market Coverage: Does the provider have a strong presence in your target market? If your application is targeted at a specific geographic region, you’ll want a provider with data centers in that region to ensure fast and reliable service.

Flexible Integration

SaaS applications need to integrate seamlessly with various platforms and systems that clients are using. For instance, our SaaS product Lumin plans to integrate with applications like Slack and Zapier. This allows users to upload and use Lumin files directly on Slack and receive notifications of changes in Lumin files, enhancing user convenience.

Security and Identity Management

Security is paramount, especially when handling sensitive data from diverse clients. We commonly employ technologies like OAuth, Single Sign-On (SSO), and robust encryption to ensure data security.

App Performance Management

As SaaS applications often serve multiple users simultaneously, performance management is crucial. We focus on ensuring a smooth and uninterrupted user experience.

Data Analytics and Reporting

Providing data analytics and reporting capabilities is vital for clients to monitor and evaluate application usage performance. So, data-driven decision-making is crucial both before implementing a feature and after its release to assess user engagement and effectiveness.

By carefully considering these aspects when choosing a tech stack, we can ensure the development of robust, efficient, and user-friendly SaaS applications.

Develop the Monetization Strategy

Choose the monetization strategy

It’s important to determine a clear monetization strategy in place. This will guide your development process and help ensure your application is profitable. Here are some monetization options for your apps:

  • Subscription Fees: This is the most common monetization strategy for SaaS applications. Users pay a regular fee (usually monthly or annually) to use the application.
  • Freemium Models: With this model, users can use a basic version of the application for free, but must pay to access additional features or functionality.
  • Usage-Based Pricing: With this model, users pay based on how much they use the application. This can be a good option for applications that users may not need to use regularly.

Each of these strategies has its own advantages and disadvantages, and the best choice will depend on the specifics of your application and your target market. It’s important to consider your monetization strategy carefully to ensure the long-term success of your SaaS application.

The 6-Step Process of SaaS Application Development with DSV’s Insights

6 steps of SaaS app development at DSV

Once you’ve made essential preparations, it’s time to embark on the path of SaaS application development. While various companies might adopt distinct strategies, they all fundamentally adhere to crucial steps. In this section, DSV will illustrate our methodology in assisting our clients to construct a SaaS application, along with the hurdles we encounter throughout the process.

Step 1: Research and Planning

This initial phase involves a deep dive into understanding the market needs. We conduct thorough research to comprehend the requirements of the target audience and plan our strategy accordingly. This step is crucial as it lays the foundation for the entire project. 

Our Challenge

During Research and Planning, clients often present their own solutions, making it challenging to thoroughly address the underlying issues.

Our Solution

To overcome this challenge, DSV adopts a collaborative approach. We value our clients’ insights and incorporate them into our planning process. However, we also ensure to conduct an independent analysis to identify the root causes of the issues at hand. 

By combining our clients’ perspectives with our own expertise and market research, we can devise robust plans that not only align with our client’s visions but also effectively address the core issues. 

This balanced approach allows us to navigate the complexities of the planning phase and set a solid groundwork for the subsequent steps of the SaaS application development process.

Step 2: Designing and Prototyping

Once we have a clear understanding of the market needs, we move on to designing solutions for the identified issues. 

Our design process is iterative and user-centric. We start by creating wireframes and mockups that outline the basic structure and layout of the application. Then, we develop prototypes that provide a tangible representation of the product, allowing us to validate our ideas and receive early feedback. 

A key aspect of our design process is UX/UI design. We focus on creating a user interface that is not only visually appealing but also intuitive and user-friendly. Our goal is to ensure a seamless user experience that enhances user satisfaction and drives user engagement.

Step 3: Software Development

In this phase, we develop the product based on the documentation and design describing the features and improvements. 

Employing the right tech stacks, our team of skilled developers focuses on the SaaS app’s functionality, ensuring that the app performs its intended tasks effectively. We also emphasize scalability, building applications that can handle an increasing amount of work and accommodate growth. 

Security is another critical focus area, given the sensitive nature of the data handled by SaaS applications. We implement robust security measures to protect against threats and ensure data privacy. 

Lastly, we strive for interoperability, ensuring that our SaaS applications can integrate seamlessly with other systems and software.

Step 4: Testing 

After the development phase, we rigorously test the product to ensure that the output aligns with the documentation and meets user needs. This involves various types of testing methods to ensure the quality of our SaaS solutions:

  • Functional testing: verify that the application works as expected;
  • Performance testing: assess the application’s speed and responsiveness; 
  • Security testing: identify and fix any vulnerabilities; 
  • Usability testing: evaluate the application’s user interface and overall user experience;
  • Compatibility testing: ensure that the application performs well across different platforms and devices.

Through rigorous testing, we aim to deliver a SaaS solution that meets the highest standards of quality and reliability.

Step 5: Deployment 

Once the product has passed the testing phase, it’s time for deployment. We release the features and improvements for end-users. However, this phase is not without its challenges. Significant and complex features may harbor technical issues, requiring time for investigation and resolution, which can affect release timelines.

Step 6: Maintenance 

After the product is deployed, we enter the maintenance phase. This involves monitoring and managing the released features and improvements. We also measure user engagement with the new features and improvements to understand their impact and make any necessary adjustments.

Final Words

So, there you have it – you’ve unlocked the benefits of SaaS applications, their core features, and the key considerations for SaaS development success. With DSV’s expertise and insights, we expect you to have good preparation to choose the right tech stacks and outline effective steps for crafting SaaS apps. 

If you’re dreaming of starting your own SaaS business or looking for new tools to enhance your tech stack, DSV is here to help. 

Reach out to DSV today and let us guide you to success in your SaaS application development journey. 

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