What type of business is SaaS?

Software as a Service (SaaS) is a new business model disrupting the industry in recent years. It is seeing significant growth as more people do tasks remotely on their phones and gadgets. You probably use one regularly without even knowing it!

There are plenty of different types of SaaS, and depending on the service it offers, it can either be a B2B (business-to-business) or B2C (business-to-customer) company. For example, Netflix is a SaaS company; so are most of the apps you’re using for work, like Slack, Asana, or Dropbox.

What Is SaaS?

A SaaS business hosts software on a cloud infrastructure (i.e., online) to provide users with externally managed, owned, and delivered services, eliminating the need for installing traditional software. Instead, users can access SaaS products through any device connected to the Internet with a web browser.

Users can activate the software by paying a fee, through a licensing service, or by subscribing to a plan.

The Rise of SaaS

With its remarkable growth, it’s no wonder that so many new players are trying to get into the SaaS market. But a large percentage of these startups don’t see the light of day.

The reason why most SaaS companies fail is due to a combination of market problems (e.g., the fintech market size), business model failure, poor management, financial issues, and bad products.

If you have an idea and are thinking about entering the industry, an excellent way to ensure your success is to know how to design a SaaS product. If you’re unfamiliar with the space, hiring a user experience and design (UI/UX) development agency like Merge can get you a beautifully crafted, high-functioning, scalable product.

Types of SaaS

There are several different types of SaaS, which means that you can explore a thousand ideas that you want to bring to life. Here are some examples to get you inspired.

SaaS types
SaaS types

Content Management System

A content management system (CMS) is software, or a toolkit, designed to help users create and manage a website or app. It lets you create, manage, upload, and modify content without knowing how to code. Examples include WordPress and HubSpot’s CMS Hub.

Customer Resource Management

A customer resource management (CRM) software, such as Zendesk or Salesforce, allows you to manage customer information and track sales through a pipeline. Sales and marketing teams often use these products.

Project Management

Company teams use project management software to track their projects. Project managers find value in the software because it includes assignments, progress tracking, and goal-setting features. Basecamp, Trello, and JIRA are examples of these.

Web Hosting and E-commerce

Web hosting and e-commerce software, like Wix and Shopify, allow business owners to create websites and e-commerce shops simply (i.e., without knowing how to develop online platforms). These also often double as CMS, allowing you to manage content on the site.

Human Resources

Some SaaS companies offer products that assist in human resources management, including payroll management, hours tracking, benefits administration, etc. Some greats ones include BambooHR and Deputy.

Data Management

Data management SaaS companies offer features such as storage, as you see in Dropbox, Microsoft OneDrive, and Google Drive.


Communication software, which includes the likes of Slack and Discord, lets people connect with others more seamlessly. You can communicate in channels, teams, or via direct messages, and these often have features that help make your conversations richer.

Get into SaaS Today

Do you have a SaaS idea that you think could solve a problem people face day-to-day? The next step to turning that idea into reality is to consult a UI/UX design and development agency like Merge to kickstart the process of making your product. You might end up with a winning effort that makes people's lives better!

Sergey Gyluyk

Head of Growth

Head of Growth and Customer Success. I'm interested in design, new tech, fashion, exploring new places and languages. My mission is to make our clients happy.


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