Microservices vs Monolith: Choosing the Best Approach
SaaS Development

Microservices vs Monolith: Choosing the Best Approach

06 February 2026
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5 min read
When developing a SaaS, one of the most critical decisions is choosing the right architecture. In this article, we will explore the pros and cons of microservices and monolithic architectures, and provide guidance on how to make an informed decision for your business. By understanding the benefits and drawbacks of each approach, you can create a robust and scalable SaaS that meets the needs of your users.

Introduction to SaaS Development

Software as a Service (SaaS) has become an increasingly popular delivery model for software applications. By providing software over the internet, SaaS enables businesses to reduce costs, increase flexibility, and improve scalability. However, developing a successful SaaS requires careful consideration of several factors, including architecture, security, and user experience. In this article, we will focus on the architecture aspect, specifically the debate between microservices and monolithic architectures.

According to a report by Gartner, the cloud services market is projected to grow to $397.4 billion by 2025, with SaaS being a significant contributor to this growth. As the demand for SaaS continues to rise, it is essential for businesses to make informed decisions about their architecture to ensure they can meet the needs of their users and stay competitive in the market.

What are Microservices?

Microservices is an architectural style that structures an application as a collection of small, independent services. Each service is designed to perform a specific function and can be developed, tested, and deployed independently of other services. This approach allows for greater flexibility, scalability, and resilience, as individual services can be updated or replaced without affecting the entire application.

Microservices are often compared to a colour palette, where each service is a unique colour that can be combined with others to create a complete picture. This analogy highlights the modular nature of microservices, where each service is a self-contained unit that can be easily integrated with others to form a cohesive whole.

A well-known example of a microservices architecture is Amazon Web Services (AWS), which provides a range of services that can be combined to create complex applications. Other examples include Netflix and eBay, which have both adopted microservices architectures to improve the scalability and flexibility of their applications.

Benefits of Microservices

  • Scalability: Microservices allow for individual services to be scaled independently, which can improve the overall performance and efficiency of the application.
  • Flexibility: Microservices enable the use of different programming languages, frameworks, and databases for each service, which can simplify the development process and reduce costs.
  • Resilience: Microservices can improve the overall resilience of the application, as individual services can be designed to fail independently without affecting the entire application.
  • Easy Maintenance: Microservices can simplify the maintenance process, as individual services can be updated or replaced without affecting the entire application.

Challenges of Microservices

  • Complexity: Microservices can introduce additional complexity, as individual services must be designed to communicate with each other and manage data consistency.
  • Higher Costs: Microservices can be more expensive to develop and maintain, as individual services require separate infrastructure, testing, and deployment.
  • Integration Challenges: Microservices can introduce integration challenges, as individual services must be designed to work together seamlessly to provide a cohesive user experience.

What is a Monolithic Architecture?

A monolithic architecture is a traditional approach to software development, where the entire application is built as a single, self-contained unit. This approach is often compared to a single block of stone, where the entire application is a single, cohesive entity.

Monolithic architectures are often preferred for smaller, less complex applications, as they can simplify the development process and reduce costs. However, as the application grows in size and complexity, a monolithic architecture can become increasingly difficult to maintain and scale.

A well-known example of a monolithic architecture is Microsoft Office, which is a self-contained application that provides a range of productivity tools. Other examples include Adobe Creative Cloud and Salesforce, which have both adopted monolithic architectures to provide a cohesive user experience.

Benefits of Monolithic Architecture

  • Simpler Development: Monolithic architectures can simplify the development process, as the entire application is built as a single, self-contained unit.
  • Lower Costs: Monolithic architectures can be less expensive to develop and maintain, as the entire application is built and deployed as a single unit.
  • Easier Testing: Monolithic architectures can simplify the testing process, as the entire application is built and deployed as a single unit.

Challenges of Monolithic Architecture

  • Scalability Limitations: Monolithic architectures can be difficult to scale, as the entire application must be scaled as a single unit.
  • Inflexibility: Monolithic architectures can be inflexible, as changes to the application can be difficult to make without affecting the entire application.
  • Higher Risk: Monolithic architectures can introduce higher risk, as a single error or bug can affect the entire application.

Comparison of Microservices and Monolithic Architecture

When comparing microservices and monolithic architectures, it is essential to consider the specific needs and goals of your SaaS. Microservices can provide greater flexibility, scalability, and resilience, but can also introduce additional complexity and costs. Monolithic architectures, on the other hand, can simplify the development process and reduce costs, but can be less flexible and more difficult to scale.

According to a report by Gartner, 80% of organisations will use microservices by 2025, while 20% will use monolithic architectures. This trend highlights the growing popularity of microservices, but also underscores the importance of considering the specific needs and goals of your SaaS when making an architectural decision.

When to Choose Microservices

  • Large, Complex Applications: Microservices are well-suited for large, complex applications that require greater flexibility, scalability, and resilience.
  • Multiple Development Teams: Microservices can simplify the development process when working with multiple teams, as individual services can be developed and deployed independently.
  • Highly Scalable Applications: Microservices can provide greater scalability, as individual services can be scaled independently to meet changing demand.

When to Choose Monolithic Architecture

  • Small, Simple Applications: Monolithic architectures are well-suited for small, simple applications that do not require greater flexibility, scalability, or resilience.
  • Single Development Team: Monolithic architectures can simplify the development process when working with a single team, as the entire application is built and deployed as a single unit.
  • Low-Risk Applications: Monolithic architectures can be suitable for low-risk applications, where the consequences of failure are minimal.

Conclusion

In conclusion, choosing the right architecture for your SaaS is a critical decision that can impact the success of your business. Microservices and monolithic architectures each have their pros and cons, and the right choice will depend on the specific needs and goals of your SaaS. By understanding the benefits and drawbacks of each approach, you can make an informed decision that will help you create a robust, scalable, and flexible SaaS that meets the needs of your users.

As a UK-based business, it is essential to consider the expertise and resources required to develop and maintain a SaaS. Professional services, such as digital transformation consultants, can provide valuable guidance and support to help you make the right architectural decision and ensure the success of your SaaS.

Ultimately, the key to success is to choose an architecture that aligns with the needs and goals of your business, and to be prepared to adapt and evolve as your SaaS grows and changes over time. By following the guidelines and best practices outlined in this article, you can create a SaaS that is robust, scalable, and flexible, and that will help you achieve your business goals and succeed in the competitive SaaS market.

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