What is a SaaS Company?

What is a SaaS Company?

A SaaS company is a type of business that provides software as a service (SaaS) to customers over the internet. Instead of buying a license and installing software on a local computer or server, customers access and use the SaaS application on-demand through a web browser or mobile app. SaaS companies typically charge a subscription fee based on the number of users or usage time, and offer different plans with various features, integrations, and levels of support.

Examples of SaaS applications include project management tools, customer relationship management (CRM) systems, marketing automation platforms, accounting software, video conferencing services, and many more.

How to Follow the SaaS Business Model

To succeed as a SaaS company, you need to follow a business model that is different from traditional software vendors or hardware providers. The SaaS model is based on three main phases: setup, growth, and stabilization. Here's how to approach each phase:


  • Identify a market need: Find a gap in the market where your SaaS application can solve a specific problem for a target audience.
  • Create a prototype: Build a minimum viable product (MVP) that showcases your value proposition and features the core functionality that customers are looking for.
  • Test and iterate: Get feedback from early adopters and beta users, and use it to improve your product and user experience.


  • Scale your product: Add more functionality, integrations, automation, and customization options that appeal to a wider audience.
  • Expand your market: Target different segments, industries, or regions where your SaaS application can offer unique value and generate more revenue.
  • Invest in sales and marketing: Use multiple channels, such as social media, content marketing, SEO, paid advertising, and events, to reach and convert potential customers.


  • Optimize your operations: Streamline your processes, automate repetitive tasks, and improve your delivery and support capabilities to ensure customer satisfaction and retention.
  • Reduce churn rate: Monitor your customer lifetime value (LTV) and customer acquisition cost (CAC), and implement strategies to reduce churn and increase upsells or cross-sells.
  • Increase profitability: Focus on growing your revenue while controlling your expenses, such as hosting, development, salaries, and taxes, to achieve sustainable profitability.

SaaS Products

There are many types of SaaS products that cater to different industries, functions, and use cases. Some of the most popular categories are:

  • Project management: Examples include Asana, Trello, and Basecamp.
  • CRM: Examples include Salesforce, Zoho, and HubSpot.
  • Marketing automation: Examples include Marketo, Pardot, and Eloqua.
  • Accounting: Examples include QuickBooks, Xero, and FreshBooks.
  • Video conferencing: Examples include Zoom, Skype, and WebEx.

B2B SaaS

B2B SaaS (business-to-business SaaS) is a subset of the SaaS market that targets other businesses as customers. B2B SaaS applications tend to be more complex, customizable, and integrated than B2C SaaS applications, as they need to handle larger data volumes, compliance requirements, and multiple stakeholders.

Top SaaS Companies

There are thousands of SaaS companies in the world, ranging from early-stage startups to established enterprises. However, some stand out based on their performance, innovation, and market share. Here are some of the strongest, fastest-growing, biggest, and most popular SaaS companies and products:

Strongest SaaS Companies and Products

  • Microsoft Office 365: The dominant productivity suite for businesses, offering cloud-based versions of Word, Excel, PowerPoint, and more.
  • Amazon Web Services (AWS): The leading cloud computing platform, providing a plethora of services for developing, deploying, and managing applications and infrastructure.
  • Atlassian: The maker of collaboration tools for software development teams, such as Jira, Confluence, and Bitbucket.

Fastest-Growing SaaS Companies & Products

  • Stripe: The leading payment processing platform for online businesses, offering easy integration, global coverage, and innovative features.
  • Zapier: The ultimate automation tool for connecting and syncing different apps and workflows through simple rules and triggers.
  • Monday.com: The intuitive and visual project management platform that is loved by remote and in-house teams alike.

Biggest SaaS Companies

  • Adobe: The creative software giant that offers a range of SaaS products, such as Creative Cloud, Document Cloud, and Marketing Cloud.
  • Salesforce: The CRM pioneer that dominates the B2B market with various cloud-based solutions, such as Sales Cloud, Service Cloud, and Marketing Cloud.
  • Oracle: The enterprise software giant that provides a wide spectrum of SaaS applications, such as ERP Cloud, HCM Cloud, and CX Cloud.

Top B2C SaaS Companies

  • Netflix: The leading video streaming service that has revolutionized the entertainment industry with its original content, personalized recommendations, and global reach.
  • Spotify: The dominant music streaming service that offers free and premium plans, along with podcasts and social sharing features.
  • Zoom: The video conferencing service that skyrocketed in popularity during the pandemic and became a verb for remote work.

Set Goals for Your SaaS Company

Now that you know what SaaS companies are, how they work, and which ones to watch out for, it's time to set your own goals and strategy. Here are some questions to ask yourself:

  • What problem do you solve and for whom?
  • What makes your SaaS application unique?
  • How do you generate leads and acquire customers?
  • What metrics do you track and optimize?
  • How do you measure success and ROI?

By answering these questions and using the tips and tricks in this article, you can build, grow, and succeed as a SaaS company in 2022 and beyond.