Why do you need a SaaS application, and what should be your expectations?
July 15, 2025

SaaS apps have now become a basic necessity for all of us, something we never knew could actually happen. Long gone are the days when we used to wait for hours or even days to watch the latest episode of our favorite series. Now, we have Netflix, Hotstar, AppleTV, and whatnot. Talking about Netflix, well, you must all be aware of SaaS apps like Netflix, or you must have used this app at least once in your life, if not regularly. Correct? 

Well, that’s what we’re talking about. Just look at how things have changed since time immemorial. Also, the major shift is that the global Software as a Service (SaaS) market size is projected to grow from USD 315.68 billion in 2025 to USD 1,131.52 billion by 2032, exhibiting a CAGR of 20.0% during the forecast period. Isn’t SaaS development something to ponder?

But firstly, why do you need a SaaS application, and what should be your expectations?

SaaS benefits

Comparing the SaaS app development model to a bank is a useful analogy to understand it. SaaS functions similarly to how a bank protects each client's privacy while providing dependable, safe, and effective services. The SaaS model transfers responsibility for software hosting and maintenance to the SaaS provider.

Significant advantages arise from this change, including regular maintenance, strong security, and assurance that the software will always be available and up to date. With this configuration, companies can concentrate on their primary tasks without having to worry about the intricate technical aspects of software administration.

In many important ways, the SaaS (Software as a Service) model improves business efficiency and satisfies the contemporary demands of efficiency, scalability, and flexibility. Here's a more sophisticated justification…

1. Increased personalisation

SaaS apps provide incredibly customisable settings that let companies customise features to suit their requirements. Rather than using a one-size-fits-all strategy, businesses can alter certain features of the software to better suit their workflows and processes, increasing user satisfaction and overall productivity.

2. Reduced expenses

Businesses can avoid the high upfront costs associated with buying and maintaining traditional software by using SaaS. Rather, they pay only for the services they use, usually through a subscription. This makes budgeting more predictable by spreading costs over time and lowering initial capital expenditure. To cut down on IT overhead, the SaaS provider also takes care of maintenance and updates.

3. Improved communication

Unlike traditional software, SaaS solutions are cloud-based and provide better connectivity. Through the Internet, staff members can access the system from any location, enabling remote work and collaboration. In today's distributed work environments, this connectivity guarantees that teams can communicate and impart information easily, which is essential for preserving operational continuity.

SaaS features that can be customised

saas features

SaaS's flexibility stems from four essential customisable features:

  • Scalability: Without requiring major infrastructure modifications, businesses can swiftly scale their SaaS usage up or down in response to demand.
  • Integration: SaaS applications frequently provide strong APIs and integrated tools, enabling smooth data transfer between various business operations.
  • Security: Providers usually make significant investments in security measures, providing strong defences that might be more expensive than a company could pay on its own.
  • Performance and dependability: A managed cloud environment and frequent updates guarantee that SaaS apps continue to operate at peak efficiency and dependability with little downtime.

SaaS applications and User Engagement: How are both interrelated to each other?

It's simple to become fixated on features, uptime, and dashboards in the SaaS space. However, leaders frequently fail to recognise this straightforward fact: your product is similar to a relationship. And user engagement is what makes or breaks that relationship.

What if you thought of user engagement as the force that shapes and maintains the product itself, rather than as the outcome of a fantastic SaaS product? This is strategy, not just semantics.

Today's top SaaS apps do more than just "solve a problem." They become ingrained in the user's daily routine and occasionally even their identity. Consider Slack. Canva. Or Swiggy, which is more relatable.

Although Swiggy may not be a traditional SaaS product in the B2B sense, its business model is based on concepts similar to those of SaaS, including behavior-driven engagement loops, platform stickiness, recurring users, and continuous optimisation.

Swiggy doesn't simply wait for users to open the app when they're hungry. It prods them. The platform anticipates user intent before users even express it by providing time-sensitive offers, personalised suggestions, and contextual push notifications.

However, it's frequently forgotten how much user engagement data has influenced Swiggy's product development. Why was Swiggy One introduced? Why branch out into mini, medicine, or groceries? In order to keep users engaged rather than merely satisfied, they were monitoring behaviour patterns, comprehending drop-offs, and continuously iterating, in addition to tracking clicks.

Leaders must zoom out at this point to see that user engagement is the R&D department that isn't being used to its full potential.

A story is told with each click, pause, and reorder. Additionally, intelligent SaaS platforms, like Salesforce for business or Swiggy for food, treat engagement data as product fuel rather than merely performance metrics.

Therefore, "How do we improve our SaaS offering?" is not the true question for leaders. "How do we design a system where engagement is so deeply ingrained that leaving the product feels like a disruption?" is the question at hand. Your roadmap becomes more intelligent when you begin there.

Something about Subscription Management & Payments

It's similar to automating your payments with recurring billing. After a user registers, the system takes over and charges them automatically on a monthly, quarterly, or annual basis, allowing them to continue using your service without constantly checking out. It lessens the manual labour of chasing payments and provides a stress-free method of maintaining a consistent cash flow.

Usually, this system is available in two varieties:

  • When the payment is fixed, it remains constant throughout each cycle.
  • Charges based on usage, such as bandwidth, users, or storage, are known as variable billing.

Subscription management now gives you and your clients even more flexibility with that same system. Giving your users more control over their subscriptions is more important than simply billing them.

SaaS companies that use subscription management can offer:

  • Trial periods
  • Tiered or flexible pricing
  • The ability for users to pause, upgrade, or downgrade as they need

Subscription management prioritises user experience, flexibility, and long-term partnerships, while recurring billing helps guarantee steady revenue and fewer late payments. While you're still automating, you're also personalising now.

Picking the Right Subscription Model for Your SaaS Business

There is no standard subscription model because no two SaaS companies are alike. Based on your product, users, and growth objectives, you must determine the best structure.

Let’s walk through the most common types of SaaS subscription models:

1. Free Trial

For a set period of time, say seven or thirty days, users have complete access to your product. It's a fantastic way to give them time to consider what you have to offer before committing.

Free trials allow you to get useful feedback while also assisting users in becoming acquainted with your platform. They work particularly well for smaller businesses and are perfect for self-serve SaaS models.

Do you want better quality leads? Credit card information can be requested up front. It tends to increase conversion rates in the long run, even though it might slightly decrease sign-ups.

2. Freemium

Give away your product's basic version for free, then charge for more features, enhanced customisation, or faster performance. This tactic increases brand recognition and user trust at scale.

The catch is that in order for it to succeed, you need a large user base. Converting enough users to paid plans could be difficult unless you have tens of millions of active users.

Nevertheless, its high potential reach and cheap acquisition costs can attract investors, and it's excellent for visibility.

3. Fixed Subscription

Everybody receives the same features and pays the same flat fee. It's straightforward, manageable, and fantastic if you provide a single solution.

It also means steady income. However, if your clientele is varied, some may feel overcharged, while others may receive too much for too little, which could cost you money or cause you to lose business to more specialised rivals.

subsription model

4. Pay-Per-User

The number of users on your platform determines how much your customers pay. Customers value that they only pay for active users, and it is scalable.

More users onboarded equate to greater reliance on your product, and it also promotes deeper adoption across teams. However, it can become complex if groups attempt to share accounts in order to save money.

5. Usage-Based (Pay As You Go)

Users only pay for what they use in this case. It is particularly prevalent in tools that provide cloud services, APIs, or data storage.

For startups and smaller companies looking to start small and expand, this model is ideal. Customers think it's fair, but it makes it more difficult for you to forecast revenue. To prevent billing surprises, usage transparency is essential.

For instance, with this model, Zapier allows users to scale according to their real automation needs.

6. Base Subscription + Add-Ons

Provide a basic plan with supplementary options. Consider it a customisable starter kit.

Customers now have the freedom to add what they need and omit what they don't. As users' needs change, it keeps your product adaptable and your users interested.

Customers feel more in control of their interactions with your brand, which increases customer satisfaction and fosters enduring relationships.

There is no mutual exclusion between these models. In order to meet clients where they are and foster long-term growth, the majority of prosperous SaaS companies actually combine two or three of these.

Understanding your target market, their decision-making process, and the level of flexibility they anticipate from your platform as it grows is crucial. Consider your customers' journey when developing your model, not just your revenue goal.

What are the real benefits of SaaS subscription management?

Managing subscriptions is a strategic growth lever for SaaS businesses. More value can be unlocked than you may imagine with a thoughtful subscription management system.

These three main advantages, which extend beyond automation, make the question worthwhile: Are you making the most of subscription management?

Saas management

1. Create recurring and customised models to generate consistent revenue

Your revenue isn't left up to chance when your product operates on a subscription basis. You're creating steady, long-term revenue streams rather than merely making one-time sales.

Payments that are made on a monthly, quarterly, or annual basis come in like clockwork, improving your company's cash position and simplifying financial forecasting. You can make better investments, plan ahead, and develop with greater assurance if you have that kind of clarity.

However, it goes beyond the numbers. Customers who receive recurring billing feel as though they will always have access to the value you provide without any reminders or disruptions.

2. Reduce involuntary turnover and increase customer retention

Customers run the risk of not renewing or re-subscribing each time they must do it manually. Life gets in the way, not because they don't like your product. That gap can be closed with subscription management.

In addition to preventing lost revenue, maintaining a smooth and uninterrupted experience also strengthens customer loyalty and trust. The stronger the relationship, the more seamless the customer journey.

Additionally, loyal customers are more likely to interact with your future offerings, upsells, and new features, stay longer, and provide better feedback. This translates into increased long-term value, more referrals, and better retention.

3. Provide more adjustable prices for all kinds of clients

Every customer is unique. While some prefer to begin small, others want enterprise-level solutions right away. You can modify your pricing strategy to satisfy both if you have an intelligent subscription management system in place.

Do you want to give a big customer a one-time discount? Completed. Do you want to test a usage-based plan in addition to your main packages? Simple. Do you want to add custom terms to a free trial? Yes, you can.

One competitive advantage is the ability to customise feature access, discounts, and billing cycles. Additionally, the more adaptable your model is, the more opportunities you have to reach new clientele and generate more steady income.

Ultimately, improving business models is the main goal of subscription management. It keeps your financial metrics stable and predictable while assisting you in streamlining cash flow, decreasing attrition, strengthening relationships, and meeting users where they are.

Therefore, consider whether your SaaS is gaining traction or merely selling subscriptions.

Develop a SaaS application for scalability

Every line of code, database choice, and feature release in the development of a SaaS application should be guided by the same principle: Can this scale?

Building a system that can expand without malfunctioning, sluggishly operating, or turning into a tech debt nightmare is known as scalability. It's the distinction between launching a product and maintaining a platform.

This is what building for scalability actually means.

1. Think beyond your first 100 users

Many SaaS products are built for today’s needs, but for tomorrow’s demand. You might have 500 users now, but what happens when you hit 5,000? Or 50,000?

Scalable SaaS apps are designed with a mindset that anticipates growth. That means decoupled architecture, cloud-native infrastructure, and modular development where you can add features or remove them, without pulling apart the entire system.

2. Focus on performance under pressure

A slow app is a dead app. As your user base grows, your backend systems must be able to handle not just volume, but complexity, concurrent users, large data sets, spikes in usage, and unexpected behavior.

Scalability means being proactive: caching where it matters, optimizing queries, and stress-testing the system before your users do it for you. You’re not just keeping the app alive, you’re keeping the experience seamless.

3. Scale people, not just tech

It’s not just your servers that need to scale your support, onboarding, and communication layers do too. A scalable SaaS product also includes self-serve documentation, automated onboarding workflows, and intelligent customer support.

Because as you grow, you can’t manually guide every new user. Your product should be able to explain itself, and adapt to different user needs, whether that’s an individual freelancer or a global enterprise team.

4. Plan for the business model you haven’t reached yet

Your SaaS product might launch with one pricing tier or one region, but what happens when you go international? Or introduce usage-based pricing? Or serve customers in highly regulated industries?

Scalable development means building systems that are flexible. Currency handling, localization, compliance requirements, and user roles- bake those in now, not when it’s urgent.

Therefore, when you develop your SaaS application with scalability at its core, you’re not just preparing for growth; you’re inviting it. Because in SaaS, success doesn’t happen overnight. But when it does, your app needs to be ready.

How to build a scalable saas application?

Building a SaaS product is exciting. But building a scalable SaaS product? That’s where the real game begins.

Scalability is the ability of your app to support more users, more data, and more complexity without falling apart. And while you don’t need to over-engineer on day one, you do need to build with tomorrow in mind.

So here’s a practical, real-world breakdown of how to build a SaaS app that scales as fast as your ambition…

1. Start with a clear architecture strategy

The foundation matters. Choose an architecture that supports growth from the beginning.

  • Go cloud-native: AWS, Azure, or Google Cloud make it easier to scale up or down depending on load.
  • Design for modularity: Microservices or service-oriented architecture helps you isolate features and scale them independently.
  • Use containers: Docker and Kubernetes help manage deployments as your app evolves.

2. Pick the right tech stack for longevity

Choose tools and languages your team can grow with, not just what's hot right now.

  • Backend: Node.js, Python (Django), or Java (Spring Boot) are safe, scalable bets.
  • Frontend: React or Vue offers modularity and community support.
  • Database: Use scalable databases like PostgreSQL, MongoDB, or Firebase for early-stage apps.

3. Design with multi-tenancy in mind

If your SaaS serves multiple businesses (tenants), your infrastructure should support isolated data and configurations for each one.

  • Choose between shared, hybrid, or isolated multi-tenant models.
  • Make sure security, billing, and analytics can scale per tenant.

4. Automate everything you can (early on)

Scaling is about reducing human bottlenecks.

  • CI/CD pipelines for faster, safer deployments
  • Automated tests and performance monitoring
  • Auto-scaling and load balancing are built into your cloud environment
SaaS application

5. Build smart onboarding and self-serve tools

As your user base grows, you won’t be able to handhold every customer.

  • Interactive product tours (think Intro.js or Appcues)
  • Detailed docs and FAQs
  • In-app guides and behavior-based prompts

6. Design flexible billing and subscription logic

Growth brings complexity with tiered pricing, usage-based billing, free trials, regional taxes, etc.

  • Use services like Stripe, Chargebee, or Paddle for subscription management.
  • Build billing to support flexibility (discounts, coupon codes, add-ons, prorated changes)

7. Keep security and compliance non-negotiable

You won’t get far, especially with enterprise clients, if your app isn’t secure.

  • Encrypt data at rest and in transit
  • Implement strong role-based access controls
  • Stay ahead of regulations (GDPR, SOC2, HIPAA if needed)

8. Test for scale before scale happens

Simulate what your app looks like with 10x traffic before it actually happens.

  • Use load testing tools like JMeter, Locust, or Artillery
  • Identify and patch bottlenecks before they become outages

A scalable SaaS app isn’t one you build once. It’s one you build intelligently, with systems and strategies that evolve as your users do. Start lean, but stay thoughtful. Make decisions with tomorrow in mind. And remember, real scalability is cultural, strategic, and continuous.

Cost of SaaS app development

Developing a SaaS app is an investment in a long-term revenue and growth engine, not just a product launch. Let's face it, though: SaaS development is not inexpensive, and the cost varies depending on what you're building, who is building it, and where.

Rather than picking a random figure, let's examine what really affects the cost and what you should budget for based on your stage, objectives, and level of complexity.

What affects the cost of SaaS app development?

Saas app development cost

Geographical location and the type of hiring (in-house, agency, or freelance) can have a big impact on costs. Let's examine every aspect.

1. Complexity of Features

Simple apps will be less expensive than complex ones like Salesforce.

2. Location of the team

Working with a talented team in India will be less expensive than hiring developers in North America.

3. Design Specifications

Highly personalised, branded experience with animations and microinteractions will cost more as compared to the basic UX specifications.

4. Security & Compliance

Building secure infrastructure and adhering to regulations will increase your costs if you're working with sensitive data.

5. Third-party Integrations

APIs, payment gateways, cloud services, analytics, and automation tools all add up, especially if you're integrating several systems.

6. Time to Market

A fast-track timeline often means a bigger team, longer hours, and higher rates.

SaaS App Development Cost Comparison

Development Type Time Estimate Average Cost (USD) Use Case Team Involved
MVP / Basic SaaS App 2–4 months $25,000 – $50,000 Simple tools, single user role 1 PM, 2 Devs, 1 Designer, QA
Mid-Level SaaS Platform 4–6 months $50,000 – $100,000 Multi-role, dashboards, integrations 1 PM, 3–4 Devs, 1–2 Designers, QA
Enterprise-Grade SaaS 6–12 months $100,000 – $300,000+ Role-based access, billing, and compliance Full-stack team, DevOps, Architect, QA
Ongoing Maintenance Monthly Retainer $2,000 – $10,000/month Updates, bug fixes, and minor features 1–2 Devs, QA, Support

How to reduce SaaS development expenses without sacrificing quality?

  • Before scaling, start with an MVP to test your concept and confirm user needs.
  • When feasible, make use of pre-built components and open-source libraries.
  • Make wise outsourcing decisions and collaborate with development teams that are well-versed in SaaS (not just code, but product thinking).
  • Build modularly so that you can scale or add features without having to rewrite your core.

Developing a SaaS application is an ongoing financial commitment. Building from the ground up, avoiding superfluous complexity, and maintaining a laser-like focus on what your users truly need will yield the true return on investment.

Why choose Antino for SaaS application development?

Antino is the ideal place to start if you want to create a SaaS product that is not only useful but also prepared for the future. Our team offers practical experience, exposure to real-world projects, and a thorough comprehension of the requirements for creating scalable, high-performing SaaS applications.

We keep up with the most recent developments in technology and industry best practices so you can concentrate on the "what" and not worry about the "how." With our SaaS mobile app development services, we can help you create a better, faster, and more intelligent product, whether you're starting from scratch or trying to enhance an existing one.

Are you curious about what SaaS can do for your company? Let's have a conversation. Get in touch with us, and we'll handle the rest.

AUTHOR
Aditya Pranav
(VP- Engineering, Antino)
Aditya actively collaborates with cross-functional teams to construct customer-centric products. He guides team members in developing clearly defined software functionality aligned with identified business objectives. His skill set encompasses Business Processes, Architecture, Databases, AWS, Process Improvement, PostgreSQL, JavaScript, and Node.js.