SaaS (Software as a Service) has become the dominant model for delivering software. The global SaaS market is projected to exceed $300 billion by 2026, creating massive opportunities for businesses that can solve real problems with well-built products.
What Makes SaaS Different
SaaS isn't just software hosted in the cloud. It's a business model that combines recurring revenue with continuous product delivery:
- Subscription pricing creates predictable revenue
- Continuous deployment enables rapid iteration
- Multi-tenancy amortizes infrastructure costs across all customers
- Usage analytics provide data-driven product insights
Planning Your SaaS Product
Validate Before You Build
The biggest risk in SaaS isn't technical — it's building something nobody wants. Validate your idea before writing code:
1. Interview potential customers about their pain points
2. Analyze competing solutions and their limitations
3. Build a landing page and measure interest
4. Create a proof of concept with the smallest possible scope
Define Your MVP
Your Minimum Viable Product should solve one core problem exceptionally well. Resist the urge to build every feature before launch. Ship fast, learn from users, and iterate.
Technical Architecture
Multi-Tenancy Models
Shared database, shared schema: All tenants share tables with a `tenant_id` column. Most cost-efficient but requires careful access control.
Shared database, separate schemas: Each tenant gets their own database schema. Better isolation with moderate overhead.
Separate databases: Maximum isolation and security. Higher cost and operational complexity. Common for enterprise SaaS.
Technology Choices
For most SaaS products, we recommend:
- Frontend: Next.js + React + TypeScript
- Backend: Node.js with serverless functions or Convex
- Database: PostgreSQL or a managed backend like Convex
- Auth: Clerk or Auth0 for authentication and user management
- Payments: Stripe for billing and subscription management
- Hosting: Vercel for the frontend, serverless for the backend
Key Infrastructure Concerns
- Horizontal scaling: Design for scale from the start, even if you don't need it yet
- Background jobs: Use queues for email, notifications, and heavy processing
- File storage: Use object storage (S3, R2) for user uploads
- Real-time features: WebSockets or server-sent events for live updates
Billing and Payments
Pricing Models
- Flat-rate: Simple, easy to understand. $29/month for all features
- Tiered: Different feature sets at different price points
- Usage-based: Pay for what you use (API calls, storage, users)
- Hybrid: Base subscription + usage overage charges
Stripe Integration
Stripe is the gold standard for SaaS billing:
- Subscription lifecycle management
- Prorated upgrades and downgrades
- Automatic retry for failed payments
- Customer portal for self-service billing management
Security for SaaS
- Tenant isolation: Ensure users can never access another tenant's data
- Encryption: Encrypt data at rest and in transit
- Audit logging: Track who did what and when
- SOC 2 compliance: Required for enterprise customers
- Regular penetration testing: Identify vulnerabilities proactively
Growth and Scaling
From 0 to 100 Customers
Focus on manual onboarding, direct customer feedback, and rapid iteration. This is where you discover product-market fit.
From 100 to 1,000 Customers
Invest in self-service onboarding, documentation, and automated support. Optimize conversion funnels and reduce churn.
From 1,000 to 10,000+ Customers
Build enterprise features (SSO, RBAC, audit logs), expand your team, and invest in infrastructure scalability.
How RCB Software Builds SaaS Products
We partner with founders and businesses to bring SaaS ideas to life. Our process starts with strategic validation, moves through rapid MVP development, and scales with you as you grow. We build on battle-tested technologies and design for maintainability from day one.