What is Embedded SaaS?
Embedded SaaS is a Software as a Service (SaaS) product built to be an integral part of other SaaS products, and not stand alone. Embedded SaaS products typically include 3 main elements: APIs, UI components, and Rich Documentation & Support.
For example: CheckHQ is an Embedded SaaS Payroll product that allows any other SaaS product to offer payroll. Squire - a one stop shop solution for running a barbershop, now offers payroll to its clients by Embedding CheckHQ. Squire's clients only see that Squire has new payroll functionality and are happy to get more value from their product. At the same time, Squire did not need to invest the massive costs required to build and maintain its an end to end payroll solution. Win-Win.
Said another way, Embedded SaaS products allow other SaaS products (many times Vertical SaaS products) to embed them fully as if they were a native part of the product (and not an integration of two separate products). The end-users won't necessarily see who is the provider of which functionality. They will see one unified product.
Embedded SaaS will allow others SaaS companies to increase revenue, reduce churn, grow faster and provide a better solution to their users.
What's the difference between Embedded SaaS and API integration of SaaS products?
API-based integration has existed for quite a while and has done amazing things for software delivery, Embedded SaaS takes this to the next level. Here are the main differences:
- Single System: Typically when two products are integrated via APIs the user still needs to log in to both systems and perform actions in one system or the other. The integration allows the products to communicate with one another, but they are still separate in nature. With Embedded SaaS the user only needs to use one application that contains the other.
- No "double" configuration: Embedded SaaS was built from day one to be delivered to the client within another product therefore will be tailor-made for that. For example, user management and configuration will not need to be "double" configured as is the case with simpler API integrations. This might seem simple, but in practice causes tremendous issues, requiring technical support and reducing much of the value from the integration.
- Embedded UI Components: In addition to APIs, Embedded SaaS provides UI Components making it much faster for host applications to Embed and launch. A UI component can be a window, visual element, or a set of screens that are presented to the user when they navigate to the relevant area in the host application.
The world of embedded SaaS is growing quickly, here are a few additional examples:
- Embedded Websites/Front ends: Duda.co
- Embedded Future of Work: This is a large category, but we see it growing daily, a simple example is Embedding Airtable Tables inside SaaS applications to get all of the Airtable functionality, look and feel etc. immediately.
- Embedded Fintech (Payments, Lending, Banking, Card Issuing, Banking, etc):
