Types of SaaS Applications: Categories and Examples

Learn about different types of SaaS solutions and the most widely used SaaS categories to create your own successful Software as a Service product!

Today, almost any company, from small startups to large enterprises, uses SaaS solutions in its day-to-day operations. With various types of SaaS products becoming essential for business operations, more and more companies are considering building SaaS applications.

If you want to know how to build a SaaS app, learning about the types and categories of these solutions is critical. With this knowledge, you can create a more comprehensive blueprint for your future product and have a deeper understanding of the modern SaaS market.

****About SaaS solutions****

Software as a Service (SaaS) is a software distribution model that allows users to access applications via the Internet on a subscription basis. SaaS is a subset of cloud computing due to the absolute majority of software-as-a-service apps being cloud-based.

Unlike traditional desktop apps, you don’t need to download and install SaaS solutions. Cloud computing allows users to enjoy all of the features and functionalities using remote servers.

The SaaS model began to gain traction in the late 1990s due to the success of web-based CRM systems, such as Salesforce. With the emergence of affordable cloud providers, many companies started to build SaaS products. Let’s talk about the main advantages of the SaaS model:

• Cost-effectiveness. Companies and individuals can usually choose the one that fits them best from several subscription plans. Almost any SaaS offering will still be cheaper than buying traditional software, plus there is no need to spend money on hardware and infrastructure, the responsibility for maintenance, upgrades, and scalability lies with cloud service providers.
• Accessibility. Cloud-based SaaS applications can be accessed from any device with an internet connection and web browser. With just a web browser, users can interact with Software as a Service product without the need to install or update anything manually.
• Scalability. Scalability is often an issue for web applications and websites with traditional, client-server architecture. But you don’t need to worry about how to build a SaaS website or app that can provide scalability without sacrificing performance. Cloud services allow businesses to scale their product back and forth without significant investments or operational downtime.
• Security. Protecting sensitive data is one of the main tasks in the modern software development industry. Reliable cloud providers offer a high level of security due to their decentralized nature. With information being stored in several places at once, it is more difficult for malicious actors to access it.

****SaaS categories****

When experts in SaaS application development describe different types of SaaS solutions, we can often hear two terms: horizontal and vertical. An experienced SaaS development company can consult you on which type of app you need, but it is still essential to have a basic understanding of these classifications yourself. Let’s talk about these two categories:

• Horizontal SaaS. If you wonder how to develop a SaaS application that will meet the needs of businesses across multiple industries, horizontal solutions are for you. These products offer features and services that can be applied to various business settings. Horizontal SaaS platforms are often used for improving day-to-day operations, streamlining processes, and increasing productivity.
• Vertical SaaS. If you, on the other hand, want to develop a SaaS application that is designed to meet the needs of a specific industry or organization type, this option is perfect for you. Vertical Software as a Service product is used in healthcare, retail, fintech, and governmental projects. You need specific SaaS development expertise in your team to create vertical apps.

****Types of SaaS Applications****

Vertical and horizontal are the key types of Software as a Service solution, but to know how to build SaaS applications with impressive functionalities and competitive advantage, you need to learn about the most widely used categories of SaaS.

****CRM software****

This is one of the most popular types of B2B SaaS software that almost any company has experience with. Customer Relationship Management (CRM) system is an essential part of any business workflow and enables companies to keep track of customer data and gain valuable insights about clients’ preferences and behaviour.

Most of the modern CRM solutions offer task automation, advanced analytics, and even predictive analysis based on customer data. The most well-known CRM software today are Salesforce, Hubspot, Zoho, and Microsoft Dynamics 365.

If you want to learn more about developing SaaS applications like these, take a closer look at their core features and implementation of cutting-edge technologies like AI and ML, and consult with a SaaS application development company that has successful cases of building CRM SaaS products.

****CMS software****

Content Management Systems (CMS) enable individuals with no experience in the software development process to create and manage web pages and digital content. Unlike the majority of SaaS types on our list, CMS is not designed specifically for business use, but companies still can benefit from them, creating basic websites without a development team.

Today, there are four top CMS SaaS products: WordPress, Drupal, Shopify, and Joomla. Each solution has its long list of pros and cons, struggling in certain aspects and excelling in others.

To build a SaaS app that will be as good if not better than these five, you need to not only have a good understanding of the SaaS model and have a reliable SaaS app development partner but also to become familiar with the most widely used CMS SaaS products and their features and functionalities.

****ERP software****

Enterprise Resource Planning (ERP) software is used by companies of any size for managing business processes. These SaaS applications offer such features as inventory and order management, operations scheduling, customer relationships management, and handling of accounting tasks. Many ERP solutions try to integrate CRM, project management, accounting, and HR modules, making them the types of SaaS software that companies need for managing day-to-day operations.

The most prominent players in the ERP industry are SAP, Oracle, NetSuite, and Microsoft Dynamics 365. As you can see, Microsoft Dynamics appears in our list in the second category already due to its different functionalities and features that can be used in various processes. It can serve as a lesson for anyone interested in how to create a SaaS application that is always in demand.

****Project management software****

Project management tools are widely used today for planning, executing, and monitoring projects. They help to improve efficiency by creating workflows, enabling teams to keep track of different tasks, and reducing the chance of miscommunications and errors. Modern project management software also leverages AI capabilities for repetitive task automation, data visualization, and report generation.

The most successful SaaS project management tools today are Trello, Asana, Jira, Microsoft Project, and Notion. These solutions offer essential features and capabilities needed for efficient project management, but each one has its own unique additions and distinct user interface. By researching these tools, you can learn how to create SaaS applications that can be used for project management tasks by companies from different industries.

****HR software****

Human Resources (HR) software enables organizations to seamlessly manage employee data and create a streamlined HR process from recruitment to retirement. It allows companies to save time, administrative resources, and money. No wonder that more and more SaaS development companies have decided to develop SaaS applications for HR purposes.

The most widely used and acclaimed HR software products are SAP, ADP, Workday, Zoho People, and BambooHR. These tools not only provide features and capabilities for managing all of an organization’s HR operations but also work seamlessly with third-party integrations and offer robust analytics. Of all the types of SaaS products, this is one of the most promising ones, considering that businesses of any size and industry have employees and HR tasks that need solving from time to time.

****Accounting and billing software****

Every company needs tools for processing payments and managing finances. Accounting and billing SaaS solutions offer an efficient and cost-effective way to control finances and streamline operations. The most widely used accounting Software as a Service platforms are Xero, QuickBooks Online, and Freshbooks. All of these solutions offer such benefits as easier compliance with regulations, real-time data insights, and improved collaboration between departments.

As for billing software, it is crucial to find reliable solutions with perfect reputations. Among the most well-known and established payment gateways you can integrate within your platform during SaaS platform development are PayPal and Stripe. By researching and comparing accounting and billing software, you can gain valuable insights into building a SaaS product for efficient financial management.

****Communication software****

During the global pandemic, communication software grew in popularity beyond the boldest projections, and today, more and more companies dream of building a SaaS platform that will be used for remote work and corporate communication.

The most popular SaaS communication software today is Slack, Google Meets, Zoom, Skype, and Microsoft Teams. Most of these tools are free, with some additional features available for an extra price. Modern communication tools provide such capabilities as file sharing, screen sharing, chat recording, and remote control. With remote work becoming more and more popular, developing SaaS applications for communication and collaborations seems like a safe bet and an excellent investment.

****Conclusion****

With numerous types of SaaS services available today, it can be easy to get confused, but a deep understanding of these basics is the first step to becoming a real expert in SaaS software development. Of course, you can just hire a SaaS application development services provider; however, without your input at the planning stage and a clear vision for the final product, chances for success are much lower.

After choosing the type of Software as a Service product you want to develop, you and your development team can choose the right tech stack, avoid many SaaS application development challenges, and build the SaaS application of your dreams.

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