SaaS development: steps and examples

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Software as a service has become one of the main components of modern work for good reasons. In this article, we focus specifically on SaaS development and show which steps must be taken in the process.

19.3.2025

6

min read
Author
Denis Gomes Iljazi
CEO & Co-Founder Axisbits GmbH
Contents
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What is SaaS?

SaaS stands for “software as a service” and basically means that you no longer install software on your computer, but completely simply use over the Internet. You can open these programs in your browser at any time, that's all you need. You usually pay a monthly or annual fee and therefore always have access to the latest version.

This is attractive because users no longer have to worry about updates or new versions. It is no longer possible to work with an outdated version. On the server side, the providers ensure that the Continuously advancing the development of their SaaS and is played out to customers without the need for action there.

Well-known examples: This is what SaaS looks like in everyday life

  • Microsoft 365: Office software with Word, Excel and PowerPoint, all files are in the cloud.
  • Google Workspace: Comparable to Microsoft 365, Google Docs, Google Sheets, Drive storage, etc.
  • Slack: Communication tool that you use in your browser or as an app. For team chats and conversations (huddles).
  • Salesforce: One of the most well-known customer relationship management (CRM) services.
  • Zoom: Online meetings without installation, or alternatively as an app.

Most companies commit to specific SaaS products for every purpose. For example, in the combination of Google Workspace and Slack — but not Microsoft 365 in parallel.

Why SaaS The benefits

  • Cost advantage: You don't need your own servers and therefore save yourself a large initial investment.
  • scalability: As your business grows, you can easily add more users or book additional features.
  • Always up to date: Updates and new features come automatically — you don't have to worry about a thing.
  • Accessibility: In the office, home office or working: You can access your data and the current status of processing from anywhere. Even across devices.
  • Quick start: There is no installation and virtually no load times, so you can get started right away in a SaaS.

How does SaaS development work in practice?

SaaS development is complex and, as described, will not be discontinued after the first live version. Quite the contrary: In order to survive on the market, the software products are constantly being developed. The following process provides an overview of the basic development steps of a SaaS.

Idea & concept

It starts with a business idea or a problem that needs to be solved. It validates whether there is a market and whether people would be willing to pay money for the solution. This also clarifies what the pricing model could look like (e.g. monthly subscription, freemium model, etc.).

Design & architecture

As soon as it is clear what is being developed, structural planning follows. The focus here is on technical implementation, hosting in the cloud and designing the database. In addition, there is the so-called Multi-tenancy architecture, so that all users can use the same software version but keep their data separate from each other.

Development (programming)

The actual implementation often starts with a agile software development. The software is developed in small steps, tested again and again and thus gradually improved.

Testing & security

Before launch, the application is extensively tested. In addition to functionality, data security also plays a major role here, as the vast majority of security is provided by the provider — quite the opposite of locally installed software, where the user was previously responsible for data and virus protection.

Deployment & go-live

After successful testing, the software is deployed in the cloud. Thanks Continuous Deployment Updates can be imported regularly and usually without noticeable interruptions.

Operation & development

After launch, the application is continuously monitored and improved. Based on customer feedback, new functions are developed and existing features are optimized. Regular updates keep the software up to date and competitive.

Custom SaaS Development: Examples of Axisbits

Axisbits specializes in the development of individual high-end software. There is an increasing demand for the development of software as a service. Below, we'll show you some examples of the SaaS products we've developed.

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SaaS development through Axisbits

On the way to their own SaaS, we take every step together with our customers: Starting with planning, collecting ideas about the range of functions, technical implementation and further development as soon as the SaaS is live. You can find the exact process on our individual software page.

If you already have a project idea in mind and need advice on how to implement it, get in touch with us. We'll show you exactly how we implement your SaaS development.

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Key terms in SaaS development

  • Multi-tenancy: Several customers share common software, but each has their own data areas.
  • subscription model: Users pay regularly, usually monthly or annually, to access the software.
  • Continuous Deployment: Code changes are rolled out automatically so that your app is always up to date.
  • Freemium: A basic offer is free; premium features are paid for.
  • Service Level Agreement (SLA): Contractual assurance of availability or response times.
  • API: Programming interface that allows other systems to communicate with your SaaS.

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Want to start with your own SaaS?

We create powerful platforms and websites for startups, scale-ups and SMEs, from concept to go-live.

We create powerful SaaS products and websites for start-ups, scale-ups and SMEs, from concept to go-live.

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SaaS Development — Common Questions and Answers

What is SaaS?

What are the benefits of SaaS for companies?

How does SaaS development work?

How do you make money with SaaS?

What are typical pitfalls in SaaS development?

Which industries benefit the most from SaaS?

How long does it take to develop a SaaS?

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