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Composable Architecture: How to Master Modularity in 2025

SaaS Product Management
Oct 2, 2024
Composable Architecture: How to Master Modularity in 2025

The future of business is composable. According to Gartner, more and more businesses build their organizations with modularity. Everything can be swapped, from product offerings no longer relevant to technologies that no longer fit your stack.

But what does composability mean for SaaS products? In this article, you’ll learn what composable architecture is and how this approach can help you scale your SaaS business quicker.

What is composable architecture?

Composable architecture is a new way to do software design. In this approach, developers combine small, self-contained software units to build complex products and digital experiences. 

Imagine composable architecture like Lego blocks for developers. You can re-use the same pieces to build new solutions, which makes it much easier to roll out new features or products and seize market share quickly.

It’s not to be mistaken with The Composable Architecture (TCA), a well-known example of this approach, developed by Point-free. TCA is a framework for Swift – a programming language for Apple app development (iOS) – and comes with a library of tools to build modular, testable applications.

In this article, however, we will focus on composable architecture as a wider software development movement.

The principles of composable architecture – MACH

For many modern-day software builders, the traditional approach to development no longer works. A monolithic architecture with everything in one single codebase is difficult to maintain. One part of the codebase must be updated, and you run into dependency after dependency. Ultimately, you’re updating the entire application just for a straightforward change.

MACH is a group of principles and technologies that modernize the architecture of enterprise apps. It fits perfectly with the idea of composable architecture. MACH stands for Microservices, API-first, Cloud-native and Headless. Let’s look at each of these principles and what they mean.

composable architecture

Microservices

Microservices are small, independent services you can couple together to build software applications. Each represents one business capability, whether it’s authentication, search, recommendations, or data analytics. You can develop, deploy, and scale each little piece independently.

In short, developers have way more flexibility to change or scale certain application parts, without affecting other parts.  For an in-depth look at the benefits, consider exploring the microservices advantages in detail.

API-first

In API-first applications, the Application Programming Interface (API) is designed before the actual software and user interface. This also means the API can often do more than the user interface. New features are added and documented with the API first, followed only later in the user interface.

As a result of prioritizing APIs, it will become easier to build a unified user experience because certain software components are clearly defined.

Cloud-native SaaS

Cloud-native is a way to build and run responsive and scalable apps anywhere, whether in public, private, or hybrid clouds. An app is "cloud native" if built from the ground up to exist in cloud environments. Cloud-native apps are more scalable, flexible, and easily manageable with automatic updates.

Headless

If your architecture is “headless”, it means the front-end is decoupled from any backend logic. So, no matter which programming language or framework is used, how certain things are presented in the front-end can vary across devices or use cases. 

Benefits of composable architecture

Organizations building their apps with modular building blocks have saved countless hours on development and maintenance.

From a technical point of view, using a composable architecture has many advantages for engineering teams.

  • Adaptability. Developers have more flexibility when making changes because you can replace or modify specific modules without changing your entire system.
  • Scalability. You can grow your application by linking small building blocks rather than creating one super complex structure.
  • Smoother testing. Writing tests for individual components is easier and faster than for large codebases, as is the debugging process. State management becomes easier because each component has its local state.
  • Faster development and time-to-market. Developers get access to reusable components, saving them days or even weeks of development time along the process.
  • Better user experience. You can provide consistent and tailored experiences across different platforms.
  • Reduced dependencies. Minimize the risk associated with updating or changing parts of the system.
  • Cost efficiency. It’s possible to optimize resource utilization by scaling only the necessary components. Besides more efficient workflows for engineering, your go-to-market teams will also reap the benefits of a composable software architecture.
  • Faster time-to-market. With reusable components, developers can deliver new features quicker and produce more features in less time. 
  • Better user experience. Developers can create custom UIs for web, mobile, etc., but linked to the same backend – which leads to tailored but consistent customer experiences.

Challenges of composable architecture

Although composability has many advantages, it comes with some challenging side effects as well. If you’re considering a modular approach to building apps, here are the most common pitfalls to watch out for.

  • Complexity. The deployment, monitoring, and management of a large number of components separately can also be complex, even though small components can be managed on their own.
  • Connectivity: Reliable network connectivity is crucial for inter-module communication.
  • Integrations. Making sure that your ecosystem of components integrates natively and communicates with each other can be a challenge. When neglected, it can worsen your user experience.
  • Learning curve. It can take time to learn the ins and outs of new technologies and tools you need to build out specific components.

Real-World Examples of Composable Architecture

Shopify

Shopify uses composable architecture to deliver a highly customizable e-commerce platform. Integrating microservices and APIs, Shopify enables merchants to tailor their online stores with modular components, such as payment gateways, inventory management, and advanced analytics. To maximize earnings on Shopify, you can just grab one of the many existing plugins and components in their marketplace.

shopify's composable architecture

This flexibility allows Shopify to continuously roll out new features and integrate with third-party services, giving merchants full control over their store’s tech stack while maintaining scalability and adaptability.

Netflix

Netflix relies on composable architecture to efficiently manage its large user base and streaming infrastructure. Through the use of microservices, each responsible for specific business capabilities like user authentication, data monetization, content recommendations, and video streaming, Netflix can independently scale and optimize different parts of its platform. 

netflix composable architecture

This architecture allows Netflix to deploy updates rapidly and ensure better user experience without affecting the overall system's performance, enhancing both scalability and resilience in managing global demand.

Peloton

Peloton, known for its connected fitness products, leverages composable architecture to deliver a seamless, personalized workout experience. 

By integrating various APIs, microservices, and modular components, Peloton ensures that different parts of its platform – such as live streaming, user profiles, leaderboards, and subscription management – can evolve independently. 

peloton composable architecture

This allows Peloton to quickly roll out new features and update specific parts of their service without disrupting the entire platform. The modular design enables Peloton to maintain high scalability while adapting to its users' growing demands for personalization and interactivity.

Spotify

Spotify utilizes composable architecture to provide a seamless and personalized music streaming experience to its global user base. Spotify decouples key functionalities such as music recommendations, user playlists, and real-time streaming. 

spotify composable architecture

Each module operates independently, allowing Spotify to quickly introduce new features like personalized playlists or podcast integration without affecting other parts of the platform. 

This modular approach not only enhances scalability but also ensures a consistent user experience across different devices and operating systems. With composable architecture, Spotify can maintain agile product development cycles while keeping its backend flexible and efficient.

5 software tools to add to your composable tech stack

With a composable architecture, it becomes easier to add new functionalities that aren’t necessarily core to your platform. However, these add-on functions can be a huge value-add for your customers, leading to higher satisfaction, more expansion revenue, and a higher LTV.

Especially with powerful low-code software that exists today, you can simply plug in new building blocks in days, instead of months. Below, you’ll find 5 examples that fit perfectly into a composable stack.

Auth0: for authentication

Auth0 is a drop-in solution for authentication and authorization for web apps. You can manage social logins, single sign-on, multi-factor authentication and more, all from a central dashboard. 

It integrates seamlessly with your existing stack, allowing your DevOps team to maintain security best practices without building a custom solution.

Auth0 as composable building block for authentication
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Luzmo: for interactive dashboards

Luzmo is an embedded analytics platform that adds reporting capabilities for end-users to any SaaS product. Build interactive dashboards with simple drag and drop, and integrate them seamlessly as a component in any web app or SaaS platform. 

You can even embed a full BI interface so that customers can mine insights according to their specific needs.

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Contentstack: for content management

Contentstack is a headless CMS, which fits perfectly with the idea of composable architecture. Contentstack takes care of content creation, storage, and delivery via API. But how you present that content is completely up to you and your development team! Use any front-end technology you like to integrate content where and how you want. 

Contentstack as a composable building block for content management
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Algolia: for search

Algolia is a cloud-based tool for adding search functions to websites and SaaS applications, without having to build it from scratch. It’s a modular component that integrates seamlessly into any tech stack and scales independently as you need more (or less) search functionality.

Algolia as a composable building block for searcj
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Twilio: for communication

Twilio lets you add communication capabilities directly into any software application without building them from the ground up. 

Whether you need a chatbot, or send 2FA passcodes, or notifications via SMS and other channels, Twilio takes care of your communication across the entire customer journey. And it comes with plenty of automation options too.

Twilio as a composable building block for communication
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Present implications for composable architecture

In the ever-evolving landscape of SaaS, open-source technologies play a pivotal role in driving digital transformation. Platforms like GitHub provide access to vast repositories of open-source projects that can streamline development processes. Developers often rely on tools such as SwiftUI to create adaptable and responsive user interfaces, essential for delivering seamless customer experiences across devices.

For many SaaS applications, maintaining efficient business logic is critical to ensure smooth concurrency and performance. A common design pattern used to handle state management in Swift-based applications is the reducer pattern, where developers define actions and their resulting state changes in a clear, maintainable way. This is often paired with observable objects to track real-time updates within the app’s struct-based models.

Moreover, integrating dynamic data structures such as enum can simplify conditional logic and make the codebase more scalable. Storing and sharing these code elements in a repo on GitHub allows teams to collaborate more effectively, ensuring that their business logic and application frameworks remain flexible and scalable.

With digital collaboration becoming the new norm, professional platforms like LinkedIn also contribute to this transformation by fostering communities around open-source projects and sharing best practices for SaaS development.

Getting started with composable architecture

SaaS builders who are using a composable architecture are speeding up their product development drastically. Instead of spending months on developing an add-on, they go live with new features in days by using plug-and-play building blocks.

If you're looking to add interactive analytics in record time, consider Luzmo for seamless integration into your tech stack. Get in touch with our product experts to see how our composable analytics can enhance your SaaS offering. Or better yet – start a free 10-day trial and experience it firsthand!

Frequently asked questions

What is the difference between composable and monolithic architecture?

A monolithic architecture is a traditional model where all components are interlinked and dependent on a single codebase. In contrast, composable architecture breaks down the application into independent, self-contained modules, enhancing adaptability and scalability.

How does composable architecture benefit SaaS companies?

Composable architecture allows SaaS companies to develop and deploy new features faster, improve scalability, and provide a better user experience by enabling tailored solutions. It also reduces time to market and enhances the ability to respond to changing market demands.

What are some challenges when adopting composable architecture?

Challenges include increased complexity in managing multiple services, the need for robust API management to ensure seamless integrations, a potential learning curve for development teams, and the necessity for reliable connectivity between modules.

How do microservices fit into composable architecture?

Microservices are the building blocks of composable architecture. Each microservice represents a specific business capability and operates independently. This modularity allows for greater flexibility and scalability within the application.

Can you provide real-world examples of composable architecture?

Yes, companies like Shopify, Netflix, and Spotify use composable architecture to build scalable and adaptable platforms. They leverage microservices and APIs to offer specialized functionalities while maintaining overall system integrity.

Mieke Houbrechts

Mieke Houbrechts

Content Marketing Manager

Mieke Houbrechts is a long-time blog contributor and content marketing expert at Luzmo. Covering anything from embedded analytics trends, AI and tips and tricks for building stunning customer-facing visualizations, Mieke leans on her background in copywriting, digital marketing, and 7 years of industry knowledge in the business intelligence space.

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