Top challenges of SaaS development

Gone are the days where we needed to install softwares on our machines and contact the software personals for updates and maintenance. Nowadays, most companies go for SaaS development (Software as a Service), ditching the traditional offline softwares.

With the hit of the pandemic, the use of Saas has increased dramatically for Work from Home culture. SaaS has changed the overall face of softwares during this time that has led to more companies opting for SaaS.

Why should you develop your SaaS application?

There is no better time to develop Saas application rather than now. Nowadays, almost every company uses SaaS for business operations like Accounting, Invoices, emailing, task management, attendance, and more. Because of this streak, it is expected in 2022 that SaaS will contribute to 80% of office apps. Right now, building your own SaaS is much more accessible, thanks to SaaS development companies, who can help you develop your application.

Saying this, there is nothing good that comes so easy without any challenges—like that, SaaS development also has many challenges that we have to overcome so that we get a good ROI. Along with challenges, you should also have profound goals for SaaS development. Without proper steps and goals, your SaaS application might not be able to serve its purpose. 

Challenges of SaaS development

SaaS development Challenges

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Developing a SaaS application has its challenges and hurdles to pass. We do not develop SaaS application for a particular or specific organisation but different organisations. Therefore there arise the challenges of delivering the applications to their users. Here are some of the top challenges apart from the quality of the software that are both technical and general you’ll face while SaaS development.

  • Data protection

Data security is the most outlooked thing in the world by everyone. With the multi-tenancy nature of the SaaS application, a proper data security framework is demanded by the users. Along with data protection, you should also practise multi-tenancy as it will help cut down expenses. Also, the GDRP restriction has made data protection the main criteria for SaaS applications. You implement the GDRP requirements at the initial phase of the system. Some of the other compliances are Sarbanes-Oxley (SOX), Payment Card Industry Data Security Standard (PCI DSS), Health Insurance Portability and Accountability Act (HIPAA).

They choose AWS or Azure cloud platforms for better data security as they offer better security and are made for multi-tenancy purposes. Each organisation can have access to the data only if it is stored on one server. Overall most companies choose their cloud platforms for SaaS applications. They offer you secured cloud data storage with other features for fast data recall.

  • Future updates

Regular future updates are one of the essential features that every application users want. Anyway, who doesn’t want new feature updates and bug fixes in their applications? Only with regular updates, your clients will be subscribed to your SaaS application. If another SaaS offers more features and reliability at the same or a bit expensive fee, your clients will subscribe to them.

With this long gone are the days where we have to buy CD’s to update the software installed on the desktop. This will make it easier for your clients to update the application online.

Payment Options are also another essential part of SaaS applications. If the application is integrated with payment options like Stripe, it will make everything easy for your subscribers and their customers.

  • Different user customisation

User customisation is another important part of SaaS development and application. We can’t have the same interface and features for the employee and the director. Even there are different types of employees/member/users, everyone may or may not need all the features. So different user customisation should be part of your SaaS application. Not everyone needs to have access to all the features, data, and modules. The SaaS application should be flexible as possible to each user’s needs.

The customisations are always the user’s/customer’s/subscriber’s decision. It can vary from the user interface to the underlying system.

  • Third-Party service integration

Most clients prefer applications with third-party service integrations to use one application for everything rather than using multiple apps. On average, an organisation uses 50-70 apps, and it depends on the size of the organisation. Without data automation, their life would be a nightmare, so they prefer applications with API for third-party service integrations.

Payments options that we discussed earlier come under third-party services. Right now, most payment solution providers are ready to give away their API, which makes the process smoother. But most of the developers, after integrating the services, does not give importance to automated or Manual testing of the function. The easier way to integrate is to go for service providers, which provide more support for integration. Also, do test cases on scenarios if you have customised features with payment solution providers.

  • Zero downtime Deployment

No one likes downtimes on apps. We all hate. It is most recommended to keep a Zero-downtime deployment strategy onboard. A SaaS application is widely accessed by a large number of people from anywhere at any time. So when they are using the app, there shouldn’t be any unavailability on the app. When some SaaS apps are updated, the user won’t be able to access all the features on the application. How lame and irritating is that?

To have a Zero-downtime deployment, you can make sure the server doesn’t start serving the changed code before the deployment process is complete. Availability of the application is a priority in this era, unlike the traditional way, where the user is notified about the app downtime, which is not acceptable now. You can expect the customers to stick to your SaaS application if you have regular downtimes. So while SaaS development, make your developers opt for a Zero-downtime deployment strategy.

  • Time and cost management

Time and cost are significant factors while doing or creating anything. The same is in the case of SaaS development. SaaS development needs both time and cost for development. Creating an application takes over 5months. If the approach is straightforward and if not it’s not, it will take more time to complete.

Next is the cost and time for integration and incorporation of the application. This takes like half a year to complete, which is a long time. Integrating the existing third party services with the SaaS requires expertise, which you can get from software development companies or hire technicians. Another way is to go for IaaS (Integration as a Service). It has received recognition and popularity over the years. This will help you cut down your cost on integrations.


With this article, I hope you learned the crucial challenges one has to face while developing SaaS applications. Without overcoming these challenges, you won’t reap a good ROI and serve your customers the way they want.

Customers are the core of every business, and if we cant drive them properly, there is no success. Keep your customers in mind while going through all the steps/processes in SaaS development.

Key Takeaways

The main challenges of SaaS development you should be aware of are:

  1. Data Protection
  2. Future Updates
  3. Different user customisation
  4. Third-Party service integration
  5. Zero downtime deployment strategy
  6. Time and cost management

There are many challenges, and it’s uncountable. The main challenges that can reckon your hard work are stated above. Overcoming these can help you succeed smoothly and maintain it. Follow the stepwise process to develop SaaS applications and Keep your goals clear. While choosing your SaaS development company, go for the one proving everything you want and overcome the challenges.

I hope you and your family are doing well. Thank you and have a good day ahead.