How Much for a Cloud-based App? The Surprising Cost Breakdown Revealed!

Unveiling the True Cost of Cloud Apps
Abhishek Founder & CFO cisin.com
In the world of custom software development, our currency is not just in code, but in the commitment to craft solutions that transcend expectations. We believe that financial success is not measured solely in profits, but in the value we bring to our clients through innovation, reliability, and a relentless pursuit of excellence.


Contact us anytime to know moreAbhishek P., Founder & CFO CISIN

 

The SAAS apps are highly demanding cloud-based solutions that can also increase the mobility of every business platform in the market.

Software as a Service is a cloud-based application that delivers and maintains the business of its user. The maintenance and deliveries are done on a subscription basis.

As it is a cloud-based product, the users can host it in their cloud. And doesn't need to be installed on a system or have a product license.

Suppose you are a user of SaaS software. In that case, you don't have to deal with any updates or complex configuration settings.

SaaS product development companies will always give you access to the latest update. One of the great examples of SaaS software is Adobe's Creative Cloud which has been altered from the traditional model to a SaaS model in recent years.

To know more about cloud-based apps and how much investment is needed to develop SAAS apps. Please continue the blog.


What are Cloud-Based Apps or SAAS (Software As A Service)?

What are Cloud-Based Apps or SAAS (Software As A Service)?

 

These cloud-based apps, or SAAS, are ubiquitous in the cloud market as they are easily accessible. You need a device and an internet browser with internet connectivity to access your data.

The vendor organizations can also handle and fix any user technical issues. For that, you do not need to hire IT experts separately.

Many business owners and entrepreneurs find these cloud computing services as a self-provision technology.

But others also opt for third-party services for integration, customization, and security. To handle the analysis, evaluation, and design of the SAAS applications, you will gain knowledge of the different components used in the systems.

Here are some of the features of cloud-computing solutions

  1. SAAS (Software as a service).

  2. PAAS (Platform as a service).

  3. IAAS (Infrastructure as a service).

SAAS services provide several advantages to its users in a flexible and energy-saving manner. Suppose you choose SAAS services.

You have to focus on growing the business. The other aspects, like updates, installations, management, and other tedious work, will be handled by the SAAS service provider.

Some third-party SAAS services build the application within the cloud infrastructure and provide users with better accessibility options.

The users can access the software from any mobile device with internet access and a web browser. Usually, the users can opt for three types of SAAS models, which are defined by the NIST (National Institute of Standard Technology) organization,


Public cloud

The cloud is built so that the public can access the infrastructure at any time. This cloud setup is usually created and managed for open businesses, educational institutions, and government sectors.

Anyone can gain access to the cloud infrastructure when they are on the premises of the cloud provider.

  1. Private cloud

This type of cloud infrastructure is developed for only specific organizations. And the people who are associated with the organization can only access the cloud.

Access to the cloud can be on-premise or off-premise or accessed after registering the device from the organization's admin. Usually, the cloud infrastructure is managed and controlled by third-party SAAS services, which are hired by the organization only.

  1. Hybrid cloud

This type of unrestricted cloud is usually created based on public clouds. But it can change in the private cloud infrastructure when needed or due to high demand.

The proprietary technologies that control the cloud control the application portability according to the traffic in the cloud.


What are the Advantages of Using Cloud-Based Apps?

What are the Advantages of Using Cloud-Based Apps?

 

Cloud-based services, or SAAS, are reasonably priced, recurring revenue models. Using its advantages any small business can disrupt the present market condition effectively.

Plus, it also offers users faster deployment than any other on-premise or off-premise cloud-based infrastructures in the market. Here are some of the advantages of SAP Development Services,

  1. Operational Management

If you opt for SAAS development services, you don't have to worry about the authorization aspects, such as traditional licensing management.

Including the installation and timely updates of the cloud infrastructure, as the cloud-based app service providers will handle those.

  1. Scalability

When you opt for SAAS development services, you can provide much more services to your users. Plus, the users can pay for those services they opt for from your organization.

This increases the user base of cloud-based apps. Usually, the users feel safer with the flexible services you will be able to provide them.

  1. Analysis

You can analyze the data reports any time you want according to the needs of your business. This is possible with the help of some inelegance tools present in the SAAS development services.

These tools can detect the issue in the system workflow and provide the users with practical suggestions to overcome or fix the detected problem.

  1. Accessibility and Persistence

By choosing the SAAS cloud-based services, you will be able to serve your customers 24X7. They can call for your assistance from any device connected to the network.

This helps the organization provide better customer service and increase its brand value. The accessibility of the services can be gained at any time and from anywhere in the world if it is off-premise cloud infrastructure.

  1. Cost-effective

If you opt for the SaaS application services, you have to pay only for the services. Plus, you can save money on the hardware as it needs none.

  1. Security

The SAAS cloud-based services provide their users with multi-layer security services. Plus, as a user, you will get better assistance in case of any breach from the security specialist.

In case of any cyber threat or virus, the system automatically provides you with security warnings and practical suggestions to safeguard the user's or organization's data.

  1. Storage

As SAAS is a cloud-based service, you can subscribe to unlimited amounts of data at a reasonable cost. You can save every piece of data available in the organization and provide hierarchical access to them.

  1. Automatic Updates

The updates of the service will be provided to you by the SAAS service providers. So that you don't have to worry about launching and integrating the updates with your existing version of the application.

In the case of the on-premise cloud-based app, the number of IT professionals needed to execute this type of work is less.

  1. Payment Flexibility

The SAAS development services offer a vast number of benefits to their users. These services can be selected on a subscription basis.

The users will have to pay only for the chosen service per their business model. Thus, the cloud-based application provides more payment flexibility to their users.

Here are some of the scenarios where SaaS Development Companies will be able to provide better services,

  1. In the case of established companies, the owner can opt for SAAS development services for shorter projects. Also, the projects which will only be needed during the year are best for these types of services.

  2. The development services are best for small businesses or start-ups entering this competitive market as they can get the expertise of developing their software along with accessible on-premise or off-premise deployment at a reasonable cost.

  3. The server can be accessed from both stationary and mobile devices, which increases the efficiency of the workflow along with the accessibility of the software.

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What are the Challenges while Using Cloud-Based Apps?

What are the Challenges while Using Cloud-Based Apps?

 

Along with many advantages, the SAAS cloud-based services also come with their own challenges. The first and most important thing is that you need a good quality internet connection to use all the benefits of SAAS services.

So if you have to depend on the internet connection while assessing the cloud infrastructure, it is for cloud-based services.

Although internet connectivity is not an issue nowadays. People can connect to the internet from almost every part of the world with the help of the advancement of technologies and also smartphones.

Here are some of the challenges that you might face if you choose SAAS development services,

  1. Limited customization Option

There is a very limited amount of customization options present in cloud-based apps. The users can choose the various development services the SAAS provider provides.

But they are not allowed to customize those according to the organization's requirements.

  1. Risk of a security Breach

This can happen when your business usually deals with sensitive data of customers. However, you can opt for on-premise private cloud options which provide multi-layered data protection.

But then also you have to take more security measures to safeguard your data.

  1. Loss of Control

You have to be entirely dependent on the SAAS service provider. As they are the ones who will control the development process along with the customer services according to your organization.

So, you have to maintain a better relationship with the service-providing company so that they provide better services to your customers.

  1. Slower internet Speed

This is one of the biggest challenges for SaaS development service providers.

As if you have slower internet connectivity, you will not be able to enjoy the advantages of cloud-based apps. There are places where people have lower internet speeds; for that area, using on-premise services can be the best option for storing the client's data.

  1. Lesser audience Base

As a one-of-a-kind software, SaaS has a shallow audience base, which is needed to bring substantial profit to your business.

To avoid this, you must expand your business's functionality and features. Plus, you have run business analyses often to know more about your competition, customer requirements, and ongoing trends in the market.

  1. Lack of customers Loyalty

With customer loyalty, you will be able to succeed in the market. For established SaaS development companies have their fixed customer who will always opt for them every time.

But in the case of start-ups, you have to convince your users. Features like user data security, better user experience, and interface, and better branding on logos usually prove loyalty to their customers.

  1. Poor execution of Ideas

Every idea has a flourishing time. Take the example of CD players; in the past, it was a great idea, but now in 2020, the use of CD players has become almost obsolete.

So, it's better to execute a vision that meets the ongoing trends and requirements of the users. This proves the fact that there are no bad ideas. Sometimes, the execution of the pictures could be better.

Read More: What Are Examples Of A Cloud-Based Application?


Factors that Govern the Cost of Developing a Cloud-Based App

Factors that Govern the Cost of Developing a Cloud-Based App

 

In SAAS development, you will need better developers to provide the best customer service to your users and increase your brand value.

As a client, you have to pay for the development services, including the support fee, to the SAAS service providers. Usually, the cloud-based development process only needs a little coding. A considerable part of the development cost goes to desired staff.

Suppose you hire a better and more experienced SAAS development team. In that case, they can assure you of a better product for your organization.

The more experience, the more developers will be the development fees they charge you.

You can hire multiple individual developers with capabilities in various aspects of the SAAS development process.

But then you have to fill in their hourly rates and calculate which needs time and effort. Instead, you can opt for SAP Development Company where you will find a group of specialized developers who will take over your project.

Plus, you have to pay only to the company and enjoy the benefits provided by the developers for your business. Four factors can affect the SAAS development cost such as,

  1. Planning

A properly planned project always provides a better result to the client company and ensures a smoother workflow.

During this step, valuable development aspects, such as aim, goal, revenue model, etc., should be appropriately documented and developed with an experienced SAAS specialist. Usually, a proper plan takes more than 30 hours.

It would be best if you did not consider the time at this stage. By allowing a considerable amount of time in this stage, you will achieve a better and cost-effective development process that will be best for your business.

This stage is critical because you can estimate the cost investment you need during the development process.

  1. Project Management

When you hire the SAAS developers individually, you have to hire a better project manager who can ensure proper coordination among the developers.

Then only you will be able to get a better end product and better support.

In this case, you must go through a prolonged hiring process where you have to invest time, effort, and money to get the best outcome.

Thus, if you successfully get the best developers and designers present in the market, they will not let down your organization.

  1. Validation

The validation step is also crucial during the development process, which will help to decide whether your application is worth buying for the users.

In this step, you must gain knowledge about the existing competitors in the market and their products. Also, you should know whether the product is free or has a price tag. Then only you can attract users by providing better services and functionality at a reasonable cost.

In this step, you might also have to communicate with potential customers to determine their requirements. The best way to do that is to survey the target audience.

The best way to complete the validation process is to validate every aspect of your app, including the customer requirement and market value. This can take more than 10 hours, depending on the number of elements in your application that need to be validated.

With better validation, you can provide a value-for-money product and services to your customer and increase brand value.

  1. UX/UI design

Every user wants enhanced users to interface with smooth and simple functionalities. Integrating high-end functionality to attract new users can compromise the computation performance of the application.

So, it is better to incorporate simple functionality without compromising the application's performance.

The main aim of the SAAS developers is to provide a comfortable user interface to the customers. To achieve this, you will need extensive effort and innovative ideas and a skilled designer who can execute those ideas.

Conduct the designing stage after the validation process. You will be able to confirm the design according to the potential users. This can help you increase your organization's user base and revenue.


Cost of Developing Cloud-Based Apps

Cost of Developing Cloud-Based Apps

 

Getting the estimated cost of developing a cloud-based application depends on the various functionalities integrated into it.

An application that is custom-made according to the requirements of the business costs more than the basic ones. Here are some of the functionalities that can affect the cost of development of the SAAS application,

  1. Platforms and device Support

In order to increase the customer base, you have to develop your application for the existing mobile app store. Nowadays, there are many hybrid frameworks available in the market where you can create an application for both the iOS app store and the Play store of Android.

It will also help if the cloud-based application can be accessed from any mobile device. This can increase the efficiency of the workflow.

  1. Visual Objects

Suppose you want to implement high-end visual objects like videos and pictures. In that case, it can jack up development prices and affect performance.

So you can use actual visual content to maintain the budget.

  1. Maintenance Plan

This is required after the development process is over. You have to support your users and maintain the excellent reputation of your organization.

  1. Integration Points

Try to keep more integration points so there will be space for integrating upcoming trends and features through future updates.

  1. Hardware Features

Technologies like GPS navigation, NFC, Motion sensors, and more can be integrated with cloud-based apps. It is better to implement those you require to fulfill the customer targets to stay within the budget.

The cost of implementing these functionalities can vary for different cloud integration services. The SAAS development services present in the market will consistently deliver a better dynamic and feature-packed product at a reasonable cost.

Here is the price for developing a differently typed application

  1. A simple app with basic functionalities and features can cost you around 40,000 to 60,000 US dollars.

  2. Medium functionality applications can cost you around 61,000 to 120,000 US dollars.

  3. A complex app with high-end features and functionalities can cost you more than 150,000 US dollars.

  4. You also have to maintain user support from the SAAS service providers, which can cost you around 90,000 US dollars annually.

All the above values are approximate values for developing and supporting the cloud-based application so that they can vary for the different cloud integration services. If you are fixed on the requirement and aim of your business outsourcing the development process to countries like India.

You can bring down the development cost as low as 5000 US dollars.

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Conclusion

The development cost of a cloud-based application can be very intimidating to the business or new entrepreneur entering the market.

It can only be solved by hiring the best SAAS development service provider companies available in the market with the help of extensive market research, as the best development service can ensure better products and customer service at reasonable rates.