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SaaS Application Development: What You Should Know to Build a Successful SaaS Business?

Suresh Choudhary

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When was the last time you attended an online meeting using Zoom?

Be it a small business or larger corporations making use of the online video conferencing software to stay connected with their customers or employees.

Now, you might be wondering why we are talking about Zoom? This post is supposed to focus on SaaS application development.

Do we seem to be veering off course? Nope, we’re staying on course.

Zoom video conferencing software is a great example of SaaS which provides you with a simple and stress-free way for conducting online meetings without requiring you to configure the software physically on your system.

In case your organization is compiling an idea to develop software, do you think SaaS application development is the best route to go?

In this guide, you will get answers to all your questions related to SaaS application development including the benefits, challenges and how much it costs to develop a SaaS application, and so forth.

What is Software as a Service (SaaS)?

SaaS stands for Software-as-a-Service. Basically, it refers to a cloud hosting application that serves the user over the internet with the help of a web browser. Instead of traditional days software requires to be physically installed on your hardware to work.

Furthermore, the update and maintenance tasks of the SaaS application are also hosted on the cloud and set the user’s physical resources free from any burden.

Software-as-a-Service products are typically not sold with a lifetime license, rather they are purchased on a subscription basis, which means that users subscribe to the service on a monthly, quarterly, or annual basis.

In addition, SaaS applications are platform-independent, so whether you are on your smartphone or computer, you can access the application anytime as long as you have a working internet connection.

Following a discussion of what SaaS is, we will then discuss how popular SaaS applications are.

Why SaaS Application is So Popular: Market Overview

With each passing day, SaaS applications are reaching greater heights of popularity due to their affordability and ease of use.

The following picture provides you with a current market overview and a look at how the SaaS application market will develop in the coming years.

Image Credit: statista.com

Image Credit: mikesonders.com

What are the Benefits of SaaS Application Development?

We have now gained a greater understanding of the growth of cloud-based SaaS applications, so it is time to review the benefits of SaaS application development.

The following are a few of the benefits of SaaS app development;

1. Simple and Straight-Forward Setup

Since SaaS applications are developed in the cloud, physical resources are freed from all burdens. Due to this, the process of deploying an application becomes faster than using off-the-shelf software. It only takes picking a trustworthy SaaS application development company and letting the experts handle the rest.

2. Lower Cost

This is one of the benefits that SaaS developers and clients alike reap from SaaS. SaaS can reduce the software development and infrastructure cost for a business when it is selected over custom software development.

Moreover, if it turns out that your SaaS app needs additional features, your developer can easily integrate them through development tools and technologies. Consequently, your developer is able to minimize investment risks as well as save time and money. This means that when the app or platform is upgraded, the additional features will automatically be updated, so the app or platform keeps running smoothly.

3. Flexibility and Scalability at High Levels

Flexibility is essential for businesses to meet the constantly changing demands of their customers. SaaS application development is something that comes with a great level of flexibility. The cloud-based SaaS-based businesses are easier to update with an assortment of new features and seamless integration with third-party services.

Furthermore, SaaS applications come with a subscription-based model that can be easily scaled up in accordance with your business growth.

4. Security is No Longer an Issue

SaaS assures clients of the highest level of confidentiality and security for all their business data. With the use of cloud-based solutions like AWS, SaaS application developers can alleviate all security concerns. Data from every client is isolated, and the client maintains a strong set of unique identifiers, such as usernames and passwords, to make sure only authorized personnel can access the information. Furthermore, depending on the needs of the business, the data can be stored on shared servers or dedicated servers.

5. Frequent Update

Since SaaS applications are stored on cloud servers, it becomes easier for the developers to provide updates. While in the case of traditional software, whenever a new update is applied to the software, the users need to spend a certain amount of data on installing the updated version.

6. Access Anytime, Anywhere, on Any Device

This is one of the most yet the most popular benefits of SaaS application development. Since SaaS applications are hosted in the cloud and are accessible through the web browser, these applications are no longer bound to be used by a specific type of device.  Users can access SaaS-based applications over any device, from anywhere as long as they have access to a steady internet connection.

Are There Any Risks Associated With SaaS Application Development?

Positives and negatives are inherent to everything in the world. The same thing can be said for SaaS application development. So before steering on the SaaS application development, it is advisable for you to be aware of the drawbacks of the SaaS platform development.

1. Custom Third-Party Payment Integration

Payment functionality is required by almost all SaaS applications. A majority of SaaS-based applications depend on third-party payment services including Cashfree, Billdesk, Paypal, CCAvenue, Payu, etc to facilitate smooth payment functionality.

The problem begins when developers need to create a custom payment system with specific features by examining the technical aspects and offering a secure payment facility to the users.

2. Security Concern

Cloud-based applications enable enterprises to store confidential and essential information outside their servers. Further concerns about these data’s security arise, which can negatively impact privacy protections and access management, leading certain industries sensitive to these issues to have skepticism toward SaaS providers.

3. Performance

SaaS applications store data on cloud-based servers and then send that information to their users over the internet. As a result, performance issues are raised as compared to locally installed software. Whenever there is a problem with internet connectivity, it will take a longer time for the application to load and perform the operations.

Different SaaS Application Development Solutions

On the market, there are many Software-as-a-Service solutions available in the market serving different objectives, usages, and niches.

In this section, we have discussed the most common types of Software-as-a-Service solutions:

CRM SaaS Products

Customer relationship management (CRM) products are used to offer organizations effective ways to keep track of their customer’s behavior to lead organizations to make more informed decisions.

Salesforce is a great example of SaaS-based CRM software.

Project Management CRM Software

Many organizations have found that developing project management software from scratch is an expensive option. Therefore, to keep track of their applications, most of them choose SaaS-based project management software such as Jira or Monday.

Saas-Based Collaboration Tools

The primary purpose of the collaboration tools like Google Drive, Google Docs, One Drive, YouTube, TeamViewer is to make the remote work culture a smooth and flawless experience.

Fintech SaaS Applications

Billing and financial transactions can be automated using such applications. Stripe is one of the great examples of fintech SaaS applications that comes with the secure payment gateway and subscription model.

ERP Applications

Additionally, web-based tools are in the process of replacing conventional enterprise applications. Business analysts and dashboards support SAP ERP platforms, allowing businesses to gain better insight into their operations.

What are the Steps Involved in SaaS Application Development?

Now, you have gained familiarity with the major of the SaaS application development stages, the time arises to discuss the process of SaaS application development.

The following is a clear roadmap that explains how to develop SaaS applications:

1. Take the Time to Research

In order to advance the concept of SaaS platform development, it is important to gain a deeper understanding of the market.

Study your target market, competitors, trends shaping the industry, and which technologies would make the best choice for your application development.

2. Choose a Revenue Channel that is Right for You

No matter what type of cloud-based SaaS application you develop, without a proper monetization model, you won’t be able to make money from it.

Establish communication with the SaaS application development company to know different monetization models that can be applied to your SaaS application and how these models will generate revenue for you.

3. Choose a Reliable Cloud Infrastructure Provider

To serve a wide number of users while maintaining the best level of security and performance, it is inevitable to hire a reliable cloud infrastructure provider.

It is advisable to go for the proven and reliable cloud provider, rest you can have a conversion with your SaaS application developers to make the informed selection of the cloud infrastructure provider.

4. Create a Minimum Viable Product

Before you invest your money and resources in the development of the SaaS application, it is recommended to develop MVP first.

MVP or minimum viable product can be said as the trial version of the application with the basic set of the features. This will help you examine your idea of a cloud-based application before the actual process of development takes place.

5. Test MVP and Implement Appropriate Changes

If the impression of the MVP is not matched up with your satisfaction level then you can ask your SaaS application development service providers to make changes in the application during the next step of the development.

6.    Now Comes the End Product Development

Once the MVP model is approved by you, the team of the SaaS application developers will proceed with the coding phase. Your idea will be breathed into life through a thousand lines of code.

7. Testing Must Not Be Ignored

Why would you spend a lot of time, resources, and capital on SaaS application development if your app fails to impress your audience or isn’t efficient? There is no substitute for testing.

The testing process ensures that the end application deployed to your audience meets their expectations and performs the best.

How Much Does it Cost to Develop Software as a Services (SaaS) Platform?

Be it custom application development or SaaS application development comes with a certain price tag. When estimating the cost to develop a SaaS application, you must consider many factors, including the product’s complexity, features, integration with other services, and the developer’s location as well.

Basically, the process of the SaaS application development is consist of multiple stages including:

In the SaaS application development process, each stage has a price tag, and a final estimate of the development costs is provided following an analysis of these stages. Each of these steps is different for each application, so calculating the cost of development becomes a complicated task.

To figure out the exact cost of SaaS application development, it would be very helpful if you could communicate with your SaaS application development firm.

Learn how much it would cost to create a SaaS application!

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How to Find a Reliable SaaS Development Company?

Now you are all set to take your idea of SaaS application development one step further. However, without the right team of SaaS application developers by your side, you won’t be able to unlock the full potential of your idea.

So, now, the question comes like how to find a reliable SaaS development company?

Choosing a reliable SaaS company isn’t as difficult as you may think as long as you follow the steps given below:

If you want to hire a reliable SaaS application development company or need further consultation about SaaS, feel free to get in touch with us.

FAQs

1. How long does it take to develop a SaaS application?

This can differ based on the expertise and knowledge of SaaS that your new hire has. Your development time will be dramatically reduced when you hire a company that offers SaaS software development services.

2. What are the various monetization models that could be applied to your SaaS application?

The following monetization models can be applied to your SaaS application;

3. How does the SaaS application work?

The SaaS model in general refers to the software delivery model that allows users to access an application’s functions online rather than having to install it. Here the SaaS application vendors host the software and business rent the software instead of buying and maintaining it.

4. What are some of the most popular SaaS products?

Below are a few examples of successful SaaS products running in the market:

5. What are the steps required to move an existing application to the SaaS model?

Here is how you can migrate your existing application to the SaaS model;