What is SaaS and why is it so popular among startups? SaaS (Software-as-a-service) is a model for providing software as a service over the Internet, without the need to install and maintain it on local computers. Translated into the user’s language, this means you can use applications such as mail, calendar, documents, photos, etc., simply by opening them in a browser or on a smartphone, without worrying about how they work and are updated or where data is stored from the point of view of its security.
According to Statista, the SaaS application market is expected to grow by about 18% to 44% in 2024, reaching a value of $176.6 billion to $232 billion — strong evidence people and businesses are choosing SaaS solutions for their needs. Using the example of both well-known design studios and an ambitious web development company in San Francisco, Dworkz, we demonstrate SaaS is one of the most dynamic and in-demand areas of the IT industry. The purpose of the article is to introduce you to 4 trends in SaaS development that can help you as a startup solve business problems and compete in the market.
- Cloud Platforms and Microservices
Let us commence with a prominent instance — Grammarly, a software-as-a-service platform that provides tools for writing enhancement and plagiarism detection, which was developed by web development firms based in San Francisco. Grammarly runs on the AWS cloud platform and a microservice-based architecture. The advantages of this solution are scalability, high availability support, and integration with different third-party services.
Microservices are a service-oriented architectural solution that splits an application into small, independent, but collaborative modules that are responsible for specific functionality. Cloud platforms provide a comprehensive solution: infrastructure, platform, and software for cloud development, launch, and scaling of applications.
The combined use of cloud-based microservices and platforms allows startups to rapidly and flexibly design, implement, and deploy SaaS solutions. This modular approach enables swift adjustment to varying customer demands and requirements as well. Another advantage of this is that it lowers the price of creating, updating, and maintaining apps, which finally leads to their better performance, reliability, and security. Dworkz CRM, a customer relationship management application, for example, such a SaaS solution, allows you to collect, analyze, and use customer data, from first contact to deal closure and repeat sales.
- Blockchain and Cryptocurrencies
The Blockchain is a technology that enables you to record and transmit data in the form of a chain of blocks secured by cryptography and spread among the network participants. For example, IBM Food Trust records the food logistics process using blockchain technology; this shows the company’s transparency, guarantees the safety of the whole food supply chain, and increases trust among participants in the process. Cryptocurrencies, in turn, use blockchain for their functioning and security.
The synergy between blockchain and cryptocurrencies enables start-ups to create SaaS applications that would achieve transparency, decentralization, reliability, and data security, as well as cost and payment simplification. Also, they provide space for new opportunities for innovations and differentiations, e.g., tokenization, smart contacts, decentralized applications, etc.
For instance, startup Bit Pay, a SaaS payment solution for conducting and settling in cryptocurrencies, uses blockchain and cryptocurrencies which provides a faster, safer, and less expensive way to transact between different countries and currencies. Investopedia explains the basics of blockchain technology, its advantages and challenges, and some of the use cases in various industries and sectors you can get inspiration from.
- Internet of Things and Smart Devices
Smart devices are gadgets equipped with sensors, sensors, and communication units, directly controlled by a person, for example, a smartphone or a smart car, which do not necessarily constantly exchange data with other smart devices via the Internet.
The Internet of Things (IoT) is a concept that implies the mandatory exchange of data via the Internet by many smart devices to perform given functions. This is how smart homes and cities work. Each physical object of this network of smart cities, equipped with built-in sensors, communication modules, and processors, is a smart device to which programmers set a behavior algorithm characteristic of the IoT, for example, to keep a given distance from each other. In this case, we are talking about RFID-tags that are used in manufacturing logistics to identify and track objects. Thus, smart devices integrated into the IoT infrastructure, for example, cities automate and optimize the process of managing the transport and utility infrastructure of modern megacities.
Smart devices connected to the IoT infrastructure open the door to stunning opportunities for startups to create SaaS applications that can collect, process, and analyze enormous amounts of data from different sources. This delivers new types of services and value to customers, as well as increases the efficiency and quality of business processes. IBM provides an overview of the concepts and applications of IoT, as well as its implications for economic development, financial inclusion, and sustainability.
- Hybrid and Cross-Platform Applications
Hybrid applications combine elements of native (apps designed to run on only one OS) and web applications that can run on different devices and platforms but use the same program code. Cross-platform applications run on different devices and platforms using special frameworks and tools that allow you to adapt the code and interface to a specific platform.
At the intersection of hybrid and cross-platform applications, SaaS applications emerge that can reach a larger audience and satisfy different customer needs and preferences, as well as reduce the time and costs of developing, testing, and supporting applications. For example, New Relic offers monitoring of mobile and web applications in real-time, which was, also, developed by an IT-company based in San Francisco.
However, the most significant instance of a software-as-a-service application is Spotify, which provides a SaaS solution for music streaming that makes use of a hybrid application which runs on different devices and platforms, including iOS, Android, Windows, Mac, Linux, etc., and uses web technologies like HTML, CSS, and JavaScript to create the user interface and functionality. Another example is Dworkz CMS, a content management system that helps to create, edit, and publish websites, blogs, and landing pages without getting into the code.
Pros & Cons of Software-as-a-Service (SaaS) Applications
| Advantages | Disadvantages |
| 1. Scalability | 1. Dependency on internet connection |
| 2. High availability support | 2. Potential security vulnerabilities |
| 3. Integration with third-party services | 3. Limited customization options |
| 4. Swift adjustment to customer demands | 4. Data privacy concerns |
| 5. Lower development and maintenance costs | 5. Potential for vendor lock-in |
| 6. Improved performance and reliability | 6. Risk of service interruptions |
| 7. Automated routine data analysis | 7. Complexity in implementation |
| 8. Personalized solutions | 8. Compatibility issues with legacy systems |
| 9. Transparency and decentralization | 9. Learning curve for new technologies |
| 10. Cost and payment simplification | 10. Regulatory compliance challenges |
Conclusion
SaaS development startups are embracing four key trends: cloud platforms and microservices, blockchain and cryptocurrencies, the Internet of Things and smart devices, and hybrid and cross-platform applications. The success of web development firms in San Francisco further validates these trends. This means that SaaS is one of the most dynamically growing and high-demand areas of the IT industry, which makes startups enter the global software development market. If you have a tremendous idea, let’s do it. The trends are definitely something you can use to accomplish your goals.
