What is SaaS?
SaaS (software as a service) is software delivered over the internet on a subscription, hosted and maintained by the vendor. You access it through a browser and pay a recurring fee instead of buying or building it.
SaaS products are centrally hosted and updated by the vendor, so customers use them via the web without installing or maintaining infrastructure. Pricing is usually per seat or per usage on a monthly or annual subscription. SaaS is fast to adopt and cheap to start, which makes it ideal for common, commodity needs. Its limits are fit and cost at scale: you adapt to the product’s roadmap, and per-seat fees grow with your team. Businesses often pair SaaS for commodity functions with custom software for their differentiating core. Building your own SaaS product is a common goal of custom software projects.
Related: Custom Software Development · Custom Software · MVP (Minimum Viable Product) · API Integration
Is it cheaper to use SaaS or build custom software?
SaaS is cheaper to start; custom can be cheaper long-term because you own it and avoid per-seat fees. The right choice depends on fit, volume, and whether the workflow is a differentiator.
How much does it cost to build a SaaS product?
A sellable MVP SaaS typically starts around $45,000, and a full multi-tenant production platform near $120,000, depending on scope.
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