SaaS adoption is on the rise globally, thanks to the scalability, ease of access, and customization options offered by SaaS applications. Realizing the importance of digital transformation, businesses are now striving to automate their operations across a wide scale.

As companies have started migrating their business applications to SaaS, their IT infrastructure requirements have also changed. To ensure a smooth transition towards subscription-based services, organizations need a robust SaaS application architecture. This will help them achieve higher productivity, operational efficiency, and cost reduction while maintaining quality.

In this article, we will discuss key components of SaaS application architecture to help our readers effectively use SaaS applications to achieve higher growth.

So, let’s get started!

Understanding SaaS Application Architecture

SaaS application architecture refers to a software delivery method that allows users at different locations to access SaaS applications over the internet. Recent advancements in cloud computing have significantly increased the importance of SaaS architecture.

Similarly, a robust and scalable SaaS application architecture allows developers to build custom cloud-based software with powerful features. Besides, SaaS applications backed by a strong SaaS architecture show exceptional performance and deliver impeccable results. Hence, developers need to be extremely careful while working on the SaaS architecture and building cloud-based applications.

Types of SaaS Application Infrastructure

There are two broad categories of SaaS infrastructure:

1. Based on Functionality Coverage

1. Vertical SaaS

Vertical SaaS is a type of SaaS infrastructure that specifically targets industries like agriculture, logistics, retail, healthcare, and finance. Since 2020, vertical SaaS has shown a remarkable growth of 28% because it serves the broader needs of a single industry.

Besides, vertical SaaS offers various functionalities that enable organizations to depend on a single application. However, vendor dependency is a drawback that might restrict businesses from adopting this type of architecture.

Vertical SaaS AppIndustry
Meditate SolutionsHealthcare
ToastRestaurant Management
Applied EpicInsurance

Common Examples of Vertical SaaS

2. Horizontal SaaS

Unlike vertical SaaS which is confined to industry requirements, horizontal SaaS focuses more on functionality and software category. Instead of defining application features for a particular sector, horizontal SaaS applications offer functionalities for marketing, sales, and similar operations.

Moreover, horizontal SaaS enables businesses to improve the quality of their operations and achieve excellence in specific fields. At the same time, this type of SaaS architecture forces companies to purchase different SaaS applications depending on their organizational needs. Eventually, they have to invest in multiple solutions that might increase their operational costs.

Horizontal SaaS AppFunctionality
SlackTeam collaboration
Workforce ManagementHR and staff management
SalesforceRelationship management
MailchimpMarketing automation
ZendeskCustomer support

Common Examples of Vertical SaaS

2. Based on Component Shareability

1. Single-Tenant Architecture

A single-tenant architecture is designed for a single customer only who subscribes to the specific features of a SaaS application. As the name suggests, this type of SaaS application carries a single infrastructure, database, and database.

The benefit of the single-tenant architecture is that there is no need to share database resources with other users. Instead, the buyer gets exclusive access to dedicated software and customizes the dashboard as per his/her organizational needs. Hence, single-tenant SaaS applications offer extended scalability options along with better security.

A popular example of a single-tenant SaaS application is Oracle Cloud.

2. Multi-tenant Architecture

Multi-tenant architecture is currently the most popular type of SaaS application infrastructure. It serves multiple tenants and shares a common database and application information. While multi-tenant SaaS applications are feature-rich, they offer limited data security as compared to single-tenant SaaS applications.

Take the example of Google Workspace, which is a renowned cloud-based application built on multi-tenant SaaS architecture. Several tenants at multiple locations can access this SaaS application by utilizing the shared database of Google Cloud. However, despite a common database, Google Workspace offers the highest levels of data security and privacy.

3. Mixed-tenant Architecture

A mixed-tenant architecture doesn’t have predefined boundaries and functionalities. Instead, these SaaS applications use both shared and dedicated infrastructure. In this model, specific components of the SaaS application are dedicated to each tenant while the rest are shared among all users.

Qualities of the Best SaaS Application Architecture

Keep the following qualities in your mind to develop the best SaaS application architecture:

  1. High-level personalization
  2. Functional performance
  3. Easy integration with third-parties
  4. Better user control
  5. QA testing & debugging
  6. Quick releases & updates
  7. Access to specialized features
  8. Scalability & Accessibility

Wrapping Up

The development of a high-performing cloud-based solution starts by choosing an optimal SaaS application architecture. It serves as the foundation of your SaaS application and plays a key role in optimizing user experience. Besides, the overall performance of your SaaS product entirely depends on your chosen SaaS architecture.

There are two broad categories of SaaS application architecture based on functionality and component shareability. The former comprises vertical SaaS and horizontal SaaS architecture, while the latter includes SaaS applications based on single-tenant, multi-tenant, and mixed-tenant architectures.

If you are looking for a competent SaaS development company to build a robust SaaS application, choose Khired Networks as your SaaS partner. We specialize in developing robust and feature-rich SaaS applications that contribute to your corporate growth and optimize user experiences.