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Best SaaS Development Companies

Olga Gubanova

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February 14, 2025

Remember when software came in a box, and you had to install it on your computer? Feels ancient, right? Today, nearly every tool we rely on—from Slack to Notion to Stripe—is SaaS. And if you’re building a startup, chances are your product will be too.

Here’s what’s happening: the SaaS market is exploding. It grew from $273.55B in 2023 to $317.55B by the end of 2024, and by 2032, it’s expected to hit $1.23T. That’s not just steady growth—it’s a full-blown shift in how businesses operate. In fact, by 2025, 85% of all business applications will be SaaS-based.

SaaS isn’t just about technology—it’s about how businesses make money now. If you’re still thinking in terms of one-time software purchases, you’re already a step behind.

  • Scalability – No expensive infrastructure, no distribution headaches. Your product lives in the cloud and scales as your users grow.
  • Predictable Revenue – Investors love Monthly Recurring Revenue (MRR). Subscriptions = stable cash flow.
  • Faster Adoption – No downloads, no installations. Customers can start using your product the second they sign up.

You need the right SaaS development team who understand:

  • How to architect scalable infrastructure (AWS, GCP, Kubernetes).
  • How to design frictionless onboarding (because churn is your biggest enemy).
  • How to ensure security and compliance (because one data breach can sink your business).

In this guide, you'll learn how to choose a SaaS development company that understands startup dynamics, the most common mistakes founders make when building SaaS products (and how to avoid them), and which top development teams can turn your vision into a scalable, high-growth platform.

Ready to estimate your SaaS development cost, timeline, and optimal tech stack in minutes? Use our AI App Cost Calculator to get a precise breakdown right now.
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What is SaaS, and Why Do Most Startups Choose It?

If you’re launching a startup, you’ve probably been told:

“Go SaaS—it’s scalable, predictable, and investors love it.”

But what does that actually mean for you? Why are so many startups choosing SaaS over traditional software?

Software as a Service (SaaS) is a business model where software is hosted in the cloud and offered to users on a subscription basis. Instead of installing programs on their computers, customers access the software via a web browser.

For a startup founder, SaaS means:

1 - No installations or downloads – Users can access your product instantly.

Traditional software: More users = More installations, more support, higher maintenance costs.

SaaS: More users = More revenue, minimal extra effort.

2 - Predictable revenue – Subscription models create stable cash flow.

Selling software for $500 per license = $500 per user (one-time).

Offering a SaaS subscription for $20/month = $240 per user per year.

If a user stays for five years, that’s $1,200 per user—more than double the revenue of a one-time sale.

3 - Scalability – Your platform can grow without major infrastructure changes.

4 - Lower upfront costs – No need to manage on-premise servers or issue software licenses.

If you’re building a B2B tool, an AI-powered platform, or a subscription-based consumer product, SaaS allows you to focus on growth without worrying about software distribution.

Learn how AI is transforming SaaS in 2025—from automation to smarter decision-making. 👉 How ChatGPT is transforming SaaS for every industry.

Successful Startups That Scaled With SaaS

Many of today’s biggest tech companies started as SaaS startups. Here are a few examples of how they scaled from an MVP to a global platform.

Stripe – The API That Simplified Online Payments

  • Started as a developer-friendly payment gateway.
  • Integrated into thousands of SaaS platforms.
  • Now valued at over $50 billion.

Slack – From Internal Tool to Essential Business Software

  • Originally built for internal use at a gaming company.
  • Pivoted into a B2B SaaS for workplace communication.
  • Acquired by Salesforce for $27.7 billion.

Notion – A Productivity Tool That Went Viral

  • Began as a note-taking app for individuals.
  • Scaled by focusing on team collaboration and integrations.
  • Now a multi-million-dollar SaaS platform with millions of active users.

Each of these companies focused on SaaS fundamentals—scalability, subscription-based revenue, and cloud-first architecture—to grow into billion-dollar businesses.

How to Choose the Right SaaS Development Company

SaaS requires specific expertise in scalability, cloud architecture, and security. A strong SaaS development company will help you:

  • Select the right tech stack – AWS, Node.js, Python, etc.
  • Build an MVP within 3–6 months – Speed is critical in SaaS.
  • Ensure smooth scaling – Your product should be ready to handle growth.
  • Optimize cloud costs – Overpaying for infrastructure will eat into your margins.

Choose the best software developers worldwide at competitive rates Best countries for software development outsourcing.

What to Look for in a SaaS Development Team

A trusted SaaS development agency will go beyond just writing code—they’ll help you build a scalable product that supports long-term growth.

  • Do they have SaaS-specific experience, or are they generalist developers?
  • Can they provide real case studies of SaaS products they’ve built?
  • Do they follow best practices for multi-tenant architecture?
  • Do they offer post-launch support and DevOps services?

Top 6 SaaS Development Companies

Full-cycle Software Development Companies

Here’s a curated list of SaaS software development companies with a proven track record, experience working with startups, and the ability to deliver scalable, cloud-based applications.

Ptolemay

Ptolemay is a full-cycle software development company headquartered in Walnut, California. Since its founding in 2020, it has established itself as a trusted partner for startups and enterprises looking to build scalable, cloud-based solutions.

Comprehensive SaaS Development Services

Ptolemay provides end-to-end solutions, including product strategy, web and mobile app development, UX/UI design, AI integration, and IT staffing. This full-service approach ensures that startups don’t just get a development team, but a strategic partner who understands how to build SaaS products that scale.

A Team of Experienced Engineers

With 50+ highly skilled professionals, Ptolemay has built a reputation for delivering high-quality SaaS applications. Their team members have an average of 7+ years of experience, bringing deep technical expertise across cloud computing, machine learning, and DevOps.

Trusted by Industry Leaders

Ptolemay has worked with global brands like Samsung, Coca-Cola, and Knauf, demonstrating its ability to deliver enterprise-grade software solutions. This level of trust from established companies validates Ptolemay’s technical excellence and commitment to quality.

Agile and Startup-Friendly Approach

Startups require speed, flexibility, and cost efficiency—Ptolemay understands this. The company follows an agile methodology, allowing clients to iterate quickly, reduce development risks, and launch MVPs in 3–6 months.

See what SaaS founders say about working with Ptolemay. Read Oohvatcom’s review on LinkedIn.

What SaaS Founders Say About Working with Ptolemay

ScienceSoft

ScienceSoft is a distinguished IT consulting and software development company with a rich history dating back to its founding in 1989. Over the past 35 years, the company has evolved from a small AI product firm into a global provider of comprehensive IT services.

Extensive Experience

With over three decades in the industry, ScienceSoft has amassed a wealth of knowledge across various domains, enabling them to deliver tailored solutions that meet diverse business needs.

Global Presence

Headquartered in McKinney, Texas, ScienceSoft operates internationally, serving clients across the U.S., the Gulf Cooperation Council, and the European Union.

Diverse Service Portfolio

The company offers a wide range of services, including software development, IT consulting, application services, data analytics, and cybersecurity. This comprehensive suite ensures that clients receive end-to-end support for their IT initiatives.

Industry Recognition

ScienceSoft has been featured in the Inc. 5000 list of the fastest-growing private companies in America and recognized among the Global Outsourcing 100 by IAOP. These accolades underscore their commitment to excellence and client satisfaction.

Fingent

Fingent is a US-based software development company founded in 2003, specializing in custom technology services and consulting. Headquartered in White Plains, New York, with additional offices in Australia, India, and the UAE, Fingent has established a global presence to serve a diverse clientele.

Comprehensive Service Offerings

Fingent provides a wide array of services, including custom software development, web and mobile application development, IT consulting, analytics and visualization, product development, and IT infrastructure services.

Diverse Industry Expertise

The company has crafted sophisticated solutions for sectors such as financial services, real estate, logistics, healthcare, and media. This cross-industry experience enables Fingent to deliver tailored solutions that address specific business challenges.

Global Clientele

With over 600 employees, Fingent has delivered more than 700 projects to clients across four continents, serving over 150 businesses, including startups, SMBs, and Fortune 500 enterprises.

Commitment to Quality and Security

Fingent is ISO 27001:2013 certified, underscoring its dedication to maintaining high standards in information security management. Additionally, the company was recognized by Inc. 5000 in 2022, highlighting its rapid growth and excellence in the industry.

Netguru

Netguru is a Polish software development and consultancy company founded in 2008. Headquartered in Poznań, Poland, with additional offices in Warsaw, Kraków, Wrocław, Gdańsk, and Białystok, Netguru has established a global presence, serving clients worldwide.

Comprehensive Service Offerings

Netguru provides a wide array of services, including web and mobile application development, product design, IT consulting, and the creation of SaaS marketplaces. Their expertise spans various industries, enabling them to deliver tailored solutions that meet diverse business needs.

Diverse Industry Expertise

The company has crafted sophisticated solutions for sectors such as finance, retail, proptech, and healthcare. This cross-industry experience allows Netguru to address specific challenges and deliver impactful products.

Global Clientele

Netguru collaborates with some of the world's largest brands, including UBS, Merck, Volkswagen, IKEA, and Keller Williams, as well as fast-growing innovators in the financial, education, and robotics industries.

Commitment to Quality and Innovation

The company emphasizes outstanding user experiences and has been recognized among the fastest-growing digital consultancies in the EU. Their agile approach ensures that clients receive innovative and efficient solutions.

DockYard

DockYard is a Boston-based software consultancy specializing in Elixir and Phoenix, technologies built for high-concurrency, real-time SaaS applications. Unlike standard development firms, DockYard ensures long-term maintainability, fault tolerance, and seamless scalability—ideal for fintech, telehealth, and high-growth SaaS startups.

Why Choose DockYard?

  • Masters of Elixir & Phoenix – Perfect for scalable, low-latency SaaS platforms.
  • Built for Growth – Helps startups avoid technical debt and scale without performance issues.
  • Product-Driven Approach – From MVP to full-scale SaaS, ensuring UX-driven, intuitive apps.
  • Trusted by Industry Leaders – Clients include Netflix, Apple, Nasdaq, and Harvard.

For startups that need a real-time, high-performance SaaS platform, DockYard delivers future-proof architecture and expert engineering.

Altar.io

Altar.io is an award-winning product and software development company founded by former startup founders, offering a deep understanding of the startup ecosystem. With offices in Lisbon, London, and Milan, they specialize in transforming innovative ideas into market-ready products.

Key Services:

  • Product Scope: A structured 15-day process to align your product vision with business goals.
  • UX/UI Design: Crafting engaging, user-friendly, and functional designs.
  • MVP Builder: Rapid development of high-quality Minimum Viable Products to expedite market entry.
  • Dedicated Teams: Providing specialized development teams tailored to project requirements.
  • Custom Software Development: Applying lean frameworks to create innovative software solutions.
  • AI Development & Enablement: Strategic integration of Machine Learning and Generative AI to future-proof businesses.

Altar.io's approach includes a co-founder mentality, lean methodologies, and a product-led strategy, ensuring that every project is handled with precision and efficiency. This combination has led to exceptional results for their clients, with many achieving significant funding and industry recognition.

SaaS Development Company Roadmap – Finding the Best Fit for Your Startup

Choosing the right SaaS development partner depends on your startup’s priorities—whether it’s speed, scalability, AI capabilities, cost-efficiency, or compliance. This roadmap helps you navigate the options based on key needs.

Startup Needs and Constraints Best SaaS Development Company Why Choose This Company?
Fast MVP development (3-6 months) Altar.io, Netguru Both focus on lean MVP development, with structured processes to validate ideas quickly.
Scalability and High Availability DockYard, ScienceSoft DockYard specializes in Elixir and Phoenix for real-time scalability, while ScienceSoft ensures enterprise-grade stability.
AI and Machine Learning Integration Fingent, Ptolemay Fingent brings AI into SaaS automation, while Ptolemay offers generative AI, NLP, and deep learning solutions.
Budget Constraints (Cost-Effective Development) Netguru, Fingent Netguru offers a balance of affordability and UX, while Fingent provides AI-driven cost optimization.
Enterprise-Level Security & Compliance ScienceSoft, DockYard Ideal for fintech, healthcare, and regulated industries with a focus on GDPR, HIPAA compliance.
Custom Software with UX/UI Focus Ptolemay, Altar.io Ptolemay prioritizes conversion-focused design, while Altar.io integrates UX research into SaaS strategy.
Real-Time Data and Performance Optimization DockYard Strong focus on high-concurrency, real-time applications using Elixir/Phoenix.
SaaS Product Strategy and Business Guidance Altar.io, Ptolemay Both offer startup-focused development, combining technical execution with strategic consulting.

How Much Does It Cost to Develop a SaaS Product?

SaaS development isn’t cheap, but the real question is: what are you actually paying for? Whether you're bootstrapping an MVP or building an enterprise-grade platform, understanding the cost structure helps you plan smarter and avoid surprises.

Breaking Down the Costs

  1. MVP Development: Expect anywhere from $30,000 to $150,000+ depending on complexity. A lean SaaS with essential features sits at the lower end, while a robust, AI-driven platform costs significantly more.
  2. Hourly Development Rates: SaaS developers charge $40 to $150 per hour, depending on location and expertise. Eastern Europe and Latin America offer solid talent at more affordable rates than the US.
  3. Security & Compliance: If your SaaS deals with finance, healthcare, or enterprise data, compliance with GDPR, HIPAA, or SOC 2 adds extra costs—especially for data encryption, access control, and auditing features.
  4. In-House vs. Outsourcing: Hiring an in-house team means $80K–$150K per developer per year, plus benefits.

Outsourcing lets you scale flexibly and access top-tier engineers at lower costs.

How Do SaaS Companies Make Money?

A successful SaaS isn’t just about launching a product—it’s about building a revenue engine. Here are the most common models:

  • Subscriptions – Monthly or annual pricing (e.g., Notion, Slack).
  • Transaction Fees – A cut of every payment processed (e.g., Stripe).
  • API Access – Charging developers to use your platform’s features (e.g., Twilio).
  • Freemium to Paid Upgrades – Offering basic features for free, but charging for advanced tools (e.g., Dropbox, Canva).

The Rule of 40: Are You Building a Profitable SaaS?

There’s a simple formula that many investors and SaaS founders swear by:

Revenue Growth Rate (%) + Profit Margin (%) ≥ 40%

For example, if a startup is growing 30% annually and has a 15% profit margin, it’s in great shape (30+15=45%). If you’re below 40%, you may need to rethink pricing, reduce churn, or optimize costs.

Plan Your SaaS Budget Before You Build

The worst mistake? Guessing costs instead of planning. Every extra feature, integration, or compliance requirement changes the budget. Before committing, get a detailed cost breakdown tailored to your needs.

🛠 Use this AI-powered SaaS cost estimator to get a realistic budget estimate—so you know exactly what you're signing up for.

FAQ: Everything You Need to Know About SaaS Development Companies & Services

Where can I find SaaS developers?

You can find SaaS developers on specialized development agencies, freelance platforms (Upwork, Toptal), and B2B marketplaces like Clutch and GoodFirms. Many startups also hire through referrals, LinkedIn, or developer communities like GitHub and Stack Overflow.

What does a SaaS engineer do?

A SaaS engineer develops, maintains, and scales cloud-based applications. They handle backend architecture, APIs, database management, and cloud deployment while ensuring security and performance. For example, they might optimize an app's infrastructure on AWS or Google Cloud to handle thousands of users efficiently.

What is SaaS development?

SaaS development is the process of building and deploying cloud-based applications that users access via a subscription. Unlike traditional software, SaaS apps run on remote servers and are updated continuously. Examples include Slack, Notion, and Stripe, which deliver seamless experiences without requiring local installations.

How to identify a SaaS company?

A SaaS company offers software as a service via cloud hosting instead of selling licenses. It typically provides subscription-based pricing, automatic updates, and multi-tenant architecture. Companies like HubSpot, Dropbox, and Salesforce are classic examples of SaaS businesses.

Do SaaS companies make money?

Yes, SaaS companies make money primarily through recurring revenue models like monthly or annual subscriptions. The SaaS industry is projected to reach $908 billion by 2030, with high-margin growth due to scalability and predictable revenue streams. Companies like Zoom and Shopify generate billions in annual revenue from SaaS subscriptions.

What is SaaS and how to make money?

SaaS is a cloud-based software model where users subscribe to access an application instead of purchasing it. Startups make money by offering tiered pricing, freemium models, enterprise plans, or transaction-based revenue. For instance, Stripe charges a fee per transaction, while Notion monetizes premium features.

What is the rule of 40 in SaaS?

The Rule of 40 states that a SaaS company’s revenue growth rate + profit margin should exceed 40% for sustainable growth. For example, if a startup is growing at 30% annually and has a 15% profit margin, it meets the Rule of 40 at 45%, signaling strong financial health.

What is the 80/20 rule in SaaS?

The 80/20 rule in SaaS means 80% of revenue often comes from 20% of customers. This principle helps startups prioritize high-value users, optimize pricing, and focus on enterprise clients. For example, B2B SaaS companies often see a small group of enterprise clients driving the majority of revenue.

What are two examples of SaaS?

Two well-known SaaS examples are Slack and Shopify. Slack provides cloud-based team communication tools, while Shopify enables businesses to build and manage online stores without hosting their own infrastructure. Both run on subscription-based pricing and cloud architecture.

Is PayPal a SaaS company?

No, PayPal is a financial services company, not a SaaS provider. It operates as a payment gateway rather than a cloud-based software service. However, PayPal does integrate with SaaS platforms like Shopify and WooCommerce for online transactions.

Is Microsoft 365 a SaaS or PaaS?

Microsoft 365 is a SaaS product, as it delivers cloud-based applications like Word, Excel, and Teams via a subscription model. However, Microsoft Azure is a PaaS (Platform-as-a-Service) that developers use to build and deploy applications in the cloud.

What is a standard SLA for SaaS?

A SaaS Service Level Agreement (SLA) defines uptime guarantees, support response times, and data security policies. A standard SLA often includes 99.9% uptime (three nines), data recovery terms, and penalty clauses for service disruptions. For example, AWS commits to 99.99% uptime in its SLA.

Why would a company want to use SaaS?

Companies use SaaS because it reduces IT costs, scales easily, and enables remote access. SaaS platforms eliminate the need for on-premise infrastructure, allowing businesses to focus on operations instead of software maintenance. Salesforce, Asana, and Zoom are widely adopted SaaS tools.

Is SaaS still a thing?

Absolutely—SaaS adoption is accelerating, with over 85% of business applications expected to be SaaS-based by 2025. Cloud-first strategies and AI-driven SaaS innovations are driving industry growth, making SaaS more relevant than ever.

Is software development the same as SaaS?

No, software development refers to building any application, while SaaS development specifically focuses on cloud-hosted, subscription-based applications. A mobile app, for instance, is traditional software, but a web-based CRM like HubSpot is SaaS.

Is SaaS the same as Salesforce?

No, Salesforce is an example of a SaaS company, but SaaS includes many types of cloud applications beyond CRMs. Other SaaS businesses include Figma (design), Slack (communication), and Stripe (payments), each offering software through cloud-based models.

Find the Right SaaS Development Company & Get Your Project Scope Now

Picking a SaaS development company isn’t just about finding coders—it’s about choosing a team that gets your vision and builds for growth. Whether you need a fast MVP, AI-powered features, or rock-solid scalability, the right dev team makes all the difference.

But before you dive in, let’s get real about scope, budget, and timeline. No vague estimates, no surprises. Get an Accurate SaaS Development Estimate with AI to map out exactly what your SaaS build will take—fast, free, and built for founders like you.

Meet Our Expert Flutter Development Team

Our full-cycle Flutter development team at Ptolemay specializes in building high-quality, cross-platform apps from start to finish. With expert skills in Dart, backend integrations, and seamless UX across iOS and Android, we handle everything to make your app launch smooth and efficient.