SaaS sounds technical, but you almost certainly use it already. This guide explains what it means, why it matters for your business, and when it makes sense to build your own.
What SaaS means
SaaS stands for software as a service. Instead of buying a program once and installing it on your computer, you use software over the internet and pay a regular fee, usually monthly or yearly. Your data and the software live on the provider’s servers, and you open it in a browser or an app.
Email services, online accounting tools and team chat apps are all familiar examples. You sign in, use it, and the provider looks after updates and running the system.
Why businesses like it
- No installation. Open a browser and start.
- Updates happen for you. New features and fixes arrive without you doing anything.
- Start small. Many products let you begin with a small plan and grow.
- Use it anywhere. Your team can work from the office, home or a phone.
The downsides
- You keep paying. Stop paying and you lose access.
- You depend on the provider. If they change prices or close down, you are affected.
- It may not fit your way of working. Ready-made products are built for the average customer, not for you.
Buy it or build it?
For most everyday needs, such as email, accounting or team chat, buying an existing product is the right choice. It is cheaper and quicker than building anything.
Building your own SaaS makes sense when:
- you have found a problem that many businesses share and no good product solves it;
- your business runs on a special process that off-the-shelf tools cannot handle;
- you want to sell a software product to your own customers.
What building a SaaS product involves
A SaaS product is more than a few screens. It usually needs:
- Accounts and permissions: who can see and do what
- Plans and billing: trials, monthly or yearly plans, invoices, payments
- Dashboards: for your customers and for your own team
- Connections to other tools: for example your customer records or payment provider
- Reliable hosting: monitored, backed up and able to handle growth
Questions to ask any developer
- What is the smallest version we can launch first?
- How will billing and accounts work?
- Where will it be hosted and who looks after it?
- What happens if the product grows quickly?
- Who owns the code?
A good partner will answer these clearly and help you start small.
If you have an idea and want an honest opinion on whether to build or buy, talk to us.