SaaS Software Architecture— Components, Types & Benefits

December 6, 2024

Software as a service (SaaS) adoption has been growing over the last few years, with more and more businesses opting for this software distribution model. Whether you’re building SaaS software from the ground up or deliberating if an internal SaaS-based solution is better than an on-premise one, the concept of SaaS architecture is bound to come up. In the case of the latter, it can be challenging to decide if, in your unique circumstances, a SaaS architecture is the right fit. However, don’t worry; we will help you through this post. 

A Glimpse Of Software-As-A-Service (SaaS) Architecture

Before we begin, let’s understand what SaaS architecture is and how it impacts modern software development and usage. SaaS, software as a service, is a modern method designed to provide end-users with valuable and usable cloud solutions.  

SaaS software solution is usually for small and large enterprises. However, a more general audience can also use these services. SaaS architecture refers to a SaaS application’s overall layout, design, and presentation.

It simply refers to delivering software to end-users through the Internet. With this approach, businesses target many enterprises as their audience and smoothen their business experience. In other words, they can use your SaaS with a subscription-based fee without needing to download or maintain the system on their side.

In a SaaS architecture, all of the app’s information is hosted on remote servers instead of on-premises at the client’s site. Therefore, based on this reason the technical work requirement is eliminated. 

CRM systems, design tools, communication apps, accounting software, and the like rely on a SaaS architecture, and many businesses employ them.

Key Components Of SaaS Software Architecture 

Well, when talking about the components of SaaS software architecture, its application is distinguished from the others. Here are some of the key components that every SaaS application would have. 

• A Unique Infrastructure

The primary advantage of this SaaS architecture is that it is easy to tailor to your business needs and can be scaled up or down depending on business requirements. For instance, customers can decide which components would benefit their business and pay only when needed. 

Once the paid period is over, customers will return to their previous infrastructure model. Your SaaS targeted audience can purchase access to software via the billing system on a monthly or yearly basis. The requirements can be scaled up or down according to business and user needs. Therefore, having a personalized SaaS platform architecture is a must.

• Subscription-Based Billing Model

The essence of a SaaS application is the high availability of the software as a service. This service is outstretched on a flexible billing cycle that allows the targeted users to have full access to whatever they need and as much as they want.

• A CRM system

A CRM (customer relationship management) system differentiates a SaaS application from others. Since this SaaS provides a common platform for multiple tenants, it requires a single repository for multiple user accounts and their account details for management purposes.

• Automated Provisioning

Automated provisioning of a SaaS platform enables an easy user onboarding process to establish a service delivery of the cloud-based application. Automation upgrades the operational efficiency of independent software vendors (ISVs) as required framework-related updates are quickly pushed to subscribers. However, it also removes the stress of managing release schedules for deployments, patches, or upgrades.

• Support & Analytics 

A SaaS software’s customer support and analytics module provides a toolkit for platform management and checking metrics. It enables SaaS businesses to cater to their targeted users’ expectations while improving their customer experience and meeting market demands. 

Types Of Architecture For SaaS Applications

The growth and popularity of SaaS applications seem unfaltering. Even during the pandemic, SaaS applications enabled enterprises and their employees to work remotely. Although the pandemic did not impact 22.5% of organizations’ SaaS expenditures, more than 30% of global organizations increased their SaaS expenditures by an average of 10-20%.

So, what exactly makes SaaS platform architecture unique? Well, the answer lies within—The Architecture.

SaaS architecture is sui generis. However, it can be divided into distinct categories based on industry, tenancy model, or software type.

Broad Categories: As Per Industry And Functionality Coverage 

Vertical SaaS

The first architecture is vertical SaaS, which is designed based on specific industry verticals. This SaaS platform architecture includes healthcare, agriculture, real estate, finance, retail, logistics, and several other industries. While it might seem to be a narrower approach to developing SaaS software, it serves the broader requirements of a single industry. 

Here are some vertical SaaS software examples: 

Providing multiple functionalities and services for any specific industry seems more profitable than enabling a single functionality since any organization can depend on a single application. While there are multiple chances of third-party dependency, it is totally up to the decision-makers to analyze the pros and cons according to their requirements, budget, and market demands.

Horizontal SaaS

Compared to vertical SaaS, horizontal SaaS primarily aims at functionality rather than industry requirements. This SaaS architecture type focuses on a software category, irrespective of the client’s industry. For instance, marketing, sales, and communication software are used across all sectors, and a SaaS application that provides these functionalities can meet specific business requirements. 

• Slack 
• Hubspot 
• Salesforce 
• Dropbox 
• Zendesk
• Mailchimp 
• Quick books
• Microsoft 365

Since SaaS software architecture type is highly known for a single functionality or service, your targeted can be specific about their conditions and choose the software they require. However, this also means that the same users must invest in multiple SaaS applications to meet their requirements.

Saas Tenancy Models: Based On Component Shareability

Tenancy models are based on the key components of a SaaS application—the tenants. A tenant is every single customer who uses your SaaS platform and gets access by paying a subscription fee.

Do note that your tenancy model does not affect your platform’s performance. Instead, it will help you align with user demands, ensure flexible solutions for developers, set the cost, as well as maintain operational complexities.

Single-Tenant Architecture

Let us start with the first SaaS tenancy model, a single-tenant architecture. It is specifically designed to serve a single user who pays for it. The tenant gets their dedicated SaaS software architecture, server, and database. The single architecture dramatically enhances user engagement as your targeted vendors don’t have to share their database resources on a common platform with other customers. Moreover, vendors can get a tailored software according to their business needs and scale up or down whenever they want.

Multi-Tenant Architecture

When we talk about SaaS, many businesses consider that the underlying architecture is the multi-tenant. That is not at all true. Due to its key characteristics, multi-tenant architecture is highly suitable when designing a SaaS application. By definition, every single instance of this SaaS model serves more than just one tenant. That means all the clients share one common database and information of the application— with the exception that every tenant’s data is secured. 

Mixed Tenant Architecture 

Like single-tenant and multi-tenant, where boundaries and functionalities are laid out, mixed-tenant is a different concept. Imagine an instance where a tenant uses resources. 

Imagine a situation where a tenant utilizes resources from a shared infrastructure. However, specific business requirements force them to have one or two dedicated components. These can be the database, instances, or some other combination of components while utilizing the shared infrastructure. This is exactly where a mixed-tenant architecture stands out. 

Within this model, one or two parts of the application are dedicated to each tenant, while the rest are shared between all the tenants.

Benefits Of SaaS Software Architecture

So, have you ever stressed your mind on why do so many entrepreneurs choose SaaS software? There are many reasons for the increase in SaaS software architecture value. Here are some of the reasons: 

Speedy Implantation 

SaaS architecture-based Enterprise solutions are more manageable and iconic choices for your targeted audience to implement since your business hosts and maintain them. Hence, instead of spending ample time on development, setup, or installation, your targeted audience simply subscribes to your provided package that suits their needs best. Simply,  they can quickly access all the required features and functionalities via a web browser.

Predictable Costs 

With the help of SaaS software, businesses ensure that their target users will likely pay a subscription-based fee depending on their usage needs. Eventually, this makes it easy to predict how much users will spend each month. Additionally, businesses will avoid significant upfront costs and ongoing maintenance fees as the provider takes care of all that, and it is usually automatically included in your chosen package.

Scalability

One of the SaaS apps’ significant benefits is its scalability. This means that you, as the user, can seamlessly scale capabilities up or down, depending on your ever-changing business needs. For instance, adding more users or features will be easy if your organization expands without investing in more hardware or software.

Empower Your Business With RichestSoft 

But why choose RichestSoft? 

This is because we own for strengthening businesses with our colossal knowledge and forward-thinking strategies. Our specialization as a technology solution provider makes us the most iconic choice for empowering businesses with SaaS software development. We deliver multiple services, including web development and mobile app development. Businesses can also expect to get UI/UX design, cloud solutions, and SaaS platform architecture development, not just with these services. 

Our team closely works with our clients, comprehending their distinct requirements and obstacles and devising customized solutions that align with their business goals.

Whether building robust software applications, enhancing online presence through strategic digital marketing, or implementing cutting-edge technologies, Richestsoft empowers businesses to stay ahead in today’s competitive market. With a commitment to delivering excellence and fostering long-term partnerships, RichestSoft stands as a trusted partner for organizations seeking to harness the full potential of technology for sustainable growth and success.

Conclusion 

Overall, the information above is the SaaS architecture diagram. However, businesses need to understand that the SaaS platform architecture stands as the backbone for their global adoption, consistently yielding revenue growth and fostering expensive economics. When you step into the SaaS platform, you carve your path to success and contribute meaningfully to societal progress.

However, remember to choose the right development team if you want sustainable growth in your business. And go nowhere other than RichestSof! We are a top-notch SaaS platform development service. Our expertise will help you stand out in the market.