10 Best Practices for SaaS Development
SaaS (Software as a Service) is the practice of using computer programs through a web browser without the need to install them. The SaaS model is gaining immense popularity in the era of technological globalization, where geographical location matters less and less. Today, companies actively utilize specialized SaaS solutions for:
collaboration
sales
marketing
finance
logistics
accounting
reporting
analytics
forecasting
among many possible applications.
According to Fortune Business Insights, the SaaS market reached $273.55 billion in 2023, and this figure is projected to increase to $908.21 billion by 2030.
SaaS covers B2B and B2C segments and is used for corporate purposes and entertainment. SaaS users have access to the necessary functionalities at their fingertips. All they need to do is switch on their device and log in to the program through a browser.
Currently, SaaS is one of the most promising domains for software development businesses. If you're considering developing one, you can learn about SaaS best practices in our article.
Priority to microservices and multi-tenancy
SaaS is typically used by multiple users. Think, for example, of Google Docs, Dropbox, or Salesforce. These platforms regularly welcome new users who create accounts, upload data, and customize the features to fit their requirements.
In order to continuously improve resource capabilities, it is crucial to have scalable software. This can be achieved through the use of microservice or multi-tenant architecture. In a multiservice architecture, each functionality is implemented as a separate microservice.
Microservices communicate with each other through APIs, and changes in one service do not affect the others in any way. In a multi-tenant architecture, each customer's account is stored in a separate instance, which ensures high data security.
The combination of microservice + multi-tenant is ideal SaaS practice, as it allows you to easily add new users and enrich the SaaS functionality. This is the opposite of monolithic architecture, where the entire application is built as a single unit, and the changes made to specific functionality affect the whole system.
Third-party integrations
Digital business transformation involves the digitalization of all aspects of the workflow. Therefore, if you create a narrowly-focused SaaS, you need to foresee the possibility of integrating it with other software systems.
For example, if you develop a transportation management system (TMS), you should provide an opportunity to integrate it with a warehouse management system (WMS) or electronic data interchange (EDI).
If you develop a program for accountants, you may need to integrate it with an analytics and forecasting system.
When creating electronic healthcare records (EHR), you should think of ways to integrate the system with billing programs, insurance providers, and patient portals.
The best SaaS practice to create highly integrative software is to develop a custom API based on REST or SOAP protocols. In our article "Custom API development: the devil's in the details," we cover this topic and advise how to implement different integration options for your SaaS.
Customization opportunities
The main reason that companies choose custom development over a ready-made SaaS is that out-of-the-box software often does not meet their needs. Despite off-the-shelf SaaS offering quick access to features, they often fail to solve specific business problems.
For example, small companies that need 2-3 features for process management overpay for unnecessary functionality. Enterprises find existing functionality insufficient or inappropriate for current processes. And niche companies may struggle to find a suitable SaaS for their digital transformation needs, as they have specific program requirements.
Whether you're building a SaaS for selling purposes or your own business needs, it's crucial to make the software highly customizable. Given this, some of the best SaaS practices are providing users with
role-based access
feature configuration
personalized user profile
drag-and-drop elements
interface templates and presets
ability to enable and disable features
different subscription plans
Secure SDLC
According to Statista, data loss is the biggest concern when using cloud technologies. SaaS is a cloud-based software system. Thanks to the cloud, SaaS is available from any device anywhere, and SaaS users don't have the hassle of downloading and installing the program but can access it through a browser.
With this in mind, SaaS developers should prioritize security during development. They must put data safety first at the planning stage and adhere to security best practices throughout the software development lifecycle (SDLC).
Essential components of a secure SDLC are:
threat modeling
code review
input validation
penetration testing
data encryption
authorization controls
logging mechanisms
least privilege principle
incident response plan
security patch management
hashing
User-centric design
In most cases, the SaaS model assumes that the user independently explores the program interface. In-app guidance can be offered for custom settings and atypical configurations. In other cases, users should be able to easily navigate the software functions and quickly get the desired result.
User-centric design plays a crucial role in establishing a great user experience. It involves:
user empathy
user engagement
design simplicity
design consistency
emotional connection with customers
All this is achieved by combining practical functionality with engaging visuals, which are translated into efficient UI/UX design.
Creating user-centric UI/UX is crucial for attracting and retaining customers. This is the priority point in software development planning, which must be addressed by experienced UI/UX experts.
Downtime prevention
SaaS is based on cloud technology. This means that the program is hosted on a third-party provider's servers and depends on its IT infrastructure's reliability.
SaaS users are reluctant to accept program downtime, especially when it comes to business activities.
Consequently, SaaS developers must have a high level of expertise in cloud-based development and use best practices to create a reliable application.
The first thing the SaaS developers should do is choose a reliable cloud platform. Gartner Magic Quadrant lists AWS, Microsoft Azure, and Google Cloud as leading cloud service providers. At Erbis, we have worked with each of them on different projects but believe that AWSprovides the best cloud services from the price-quality perspective.
When setting up cloud infrastructure for a project, we adhere to the following SaaS practices:
load balancing
auto-scaling
failover mechanisms
database replication
regular testing
disaster recovery plan
multi-region deployment
Legal compliance
SaaS development involves working with data, which is strictly regulated at the legislative level in different countries. Data compliance regulations depend on what industry you work in and what geographic market you target. It is crucial to study the legal framework and determine the fundamental documents before starting the project implementation.
Here are the main regulatory documents to consider depending on the SaaS industry:
Healthtech:
HIPAA (Health Insurance Portability and Accountability Act)
FDA (Food and Drug Administration)
Fintech:
PCI DSS (Payment Card Industry Data Security Standard)
AML and KYC (Anti-Money Laundering and Know Your Customer) regulations
EdTech:
FERPA (Family Educational Rights and Privacy Act)
Legal and eDiscovery:
Litigation Hold Notice
Data Retention Policy
Data Preservation Plan
Data Processing Protocol
Legal Hold Log
Data privacy and global regulations:
GDPR (General Data Protection Regulation)
Multi-compatibility
Customers who use a specific SaaS system for a long time often fall into the vendor lock-in trap. This is when a customer cannot switch to another SaaS provider due to significant technological changes and the costs they would face. Fearing massive time investment, customers stay with the old provider even if it doesn't meet their needs.
You can address the vendor lock-in issue when developing your SaaS. Using specific technologies and SaaS best practices, you can create software that is easy to migrate to from legacy programs.
To achieve multi-compatibility you should:
use standard technologies and open standards
design API-based architecture
implement data portability
avoid proprietary data formats
embrace containerization and microservices architecture
follow multi-cloud strategy
Mobile experience
While SaaS systems are mostly used on laptops or desktops, the mobile experience is essential for businesses that value time and money. Providing a mobile application to users is one of the best SaaS practices. This enables your customers to respond to changes and resolve critical situations instantly. It also promotes continuous collaboration and eliminates the need to work exclusively from the office.
However, developing a mobile application for a corporate system can introduce extra costs for organizations. So, if you are at the beginning of the SaaS development path, consider starting with a minimal viable product (MVP) on the web and filling it with extra features after getting positive feedback from customers. When your product becomes stable in the market, you can adapt its functions to a mobile device and develop a mobile application.
Some examples of mobile apps of popular SaaS systems are Salesforce mobile app, Linkedin mobile app, Clickup mobile app, etc.
Innovations
Leveraging innovation is one of the best practices in SaaS development. It ensures that your program stays up-to-date with current trends and strengthens its competitiveness in the market.
Some of the latest innovations in software development are:
artificial intelligence (AI) and machine learning (ML)
continuous integration and continuous delivery (CI/CD)
low-code and no-code development
microservices architecture
serverless computing
containerization
blockchain
dApps
When developing SaaS, you should consider which innovations might enhance your product functionality and what value they can bring your customers. It is also necessary that the cost of introducing innovations pay off after the project's launch. Therefore, we advise you to conduct in-depth market research and enlist the support of professional business analysts before using certain technologies.
Leveraging SaaS best practices with Erbis
Erbis is a team of passionate specialists with deep expertise in software development. Founded in 2012 by two enthusiastic developers, today, we have grown to an international team of 100+ people. Our track record includes 50+ successful projects in the supply chain, real estate, healthcare, retail, fintech, automotive, and other industries. For 11 years on the market, we have helped 30+ companies develop competitive SaaS solutions, and we will be glad to see you among our happy clients.
No matter what stage your project is currently on - idea, semi-finished product, or legacy software - we can transform it into a valuable business asset. By leveraging the best SaaS practices, we'll guide you on the shortest way to business success.
Not sure if a third-party development team will work for your project? Book a free meeting with our specialist and see how we can help.
