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How To Build A Cloud-Based SaaS Application: An Ultimate Guide

The SaaS market is expanding and is predicted to amount to the staggering US $307.3 billion in 2026. There is no exaggeration – cloud-based SaaS has grown to be a dominant model for software development.

Below, we will uncover the following points:

SaaS definition, meaning what stands for SaaS products,

benefits of web-based software as a service,

existing SaaS app types including the variety of apps in the niche,

key functionality under software as a service model,

difficulties that stand in the way of creating SaaS solutions,

draft a comprehensive strategy for building SaaS services,

what tech stack and the volume of app development costs involved.

First off though, let’s define software as a service more specifically.

What is SaaS?

SaaS meaning stands for “software as a service”. Put simply:

Software as a service represents cloud-hosted applications accessible via a smartphone or web interface.

The first SaaS apps started getting developed around the beginning of the 21st century. The software tools we use daily, such as Dropbox, Canva, Slack, and Google Docs are, in essence, SaaS platforms.

To see what sets SaaS product apart from conventional software, consider some of these distinct specifics:


There is no necessity to purchase a license to use an application on a software-as-a-service basis. Instead, app vendors charge you a regular fee for a full set of its features.


As the name implies, cloud-based apps are deployed in cloud infrastructure and may be accessed via a web interface or a mobile device.


Users don’t need to buy a new SaaS application version every time the product development team introduces updates. The dev team works on app development continuously, with zero impact on user experience.

Why SaaS Product Is So Popular: Market Overview

The adoption of the SaaS model, is, indeed, increasing across industries. Consider these impressive SaaS business stats:

Global spendings on SaaS R&D equal almost 20% of all corporate R&D in the US.

The Asia Pacific and North America are leaders in SaaS adoption.

Salesforce, the leading SaaS company, with market capital currently exceeding US $210 billion.

The overall number of players in the global SaaS providers market has reached 15,529 in 2020.

The market for web-based solutions has been estimated to grow at an 11.7% CAGR during 2020-2026.

Organizations’ efforts to keep abreast of digital transformation are the main reasons for embracing SaaS product development. Companies are also finding it highly beneficial for their businesses.

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