Contact us anytime to know more — Kuldeep K., Founder & CEO CISIN
Continue reading if you answered yes to the above:
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The core concept of SaaS software design
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SaaS Application Development: The Benefits
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How do you develop software as a service?
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The SaaS development team and the tech stack are required.
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Development of SaaS: Challenges
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Software as a Service Application Development Costs
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How do you find a SaaS development partner that is reliable?
Now that we know what you'll be talking about, let's start with the fundamental ideas crucial to SaaS product development.
Critical Concepts of Software As a Service
SaaS is the fastest-growing market for companies providing cloud-based solutions for businesses and consumers, increasing at a real-time 18% annual rate.
Let's examine some special growth rates attained by SaaS businesses.
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Azure reported that cloud services revenues grew by more than 20%.
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Amazon web services are used by over 1,000,000 users for free and a fee.
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Salesforce sees an increase of 23,15% in revenue.
Are you encouraged by SaaS architecture's rapid development and acceptance? Let's find out more about this innovation.
What is the Meaning of the Software-as-a-Service Model?
SaaS, or software as a service, is a model for using the Internet to access web applications.
This implies that anyone could use any browser to access the program hosted on the cloud server.
Since the host takes care of all updates and maintenance, users don't need to install the app on their devices.
What is SaaS Application Development?
Cloud-based app development is referred to as SaaS development. This covers documentation creation, design, development, testing, and server deployment.
What is SaaS Different from a Web Application?
Web apps can be created using SaaS offerings. But not all online applications take advantage of SaaS. Look at this spreadsheet for comparison.
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SaaS App |
Web Application |
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SaaS apps are applications that run on cloud infrastructure. SaaS applications do not require any infrastructure requirements from their users. SaaS can be accessed via a web browser as well as a program interface. Multi-tenant backend (a feature that allows you to share costs and resources) NIST requires that the SaaS application be infinitely scalable. |
Web applications can be hosted on a server. A web app is an app that can only be accessed through a browser. Web apps also include custom WordPress sites that are run on a shared server and can be customized to act as applications. Many web applications, like scheduling apps, have a limited scalability or availability. Its backend is one tenant. |
What are the Benefits of SaaS Application Development?
SaaS has advantages for both users and startups.
The advantages that end users experience can be significantly influenced by the development strategy they choose.
Only a successful product development process will yield these advantages.
Here are a few advantages of developing SaaS products.
Benefit 1. SaaS is Easy to Deploy
SaaS is more cost-effective and faster than traditional software.
Both SaaS providers and subscribers should be pleased with this. Offerings are centrally managed, updated, and deployed by providers.
This lowers the expense of maintenance.
The software of clients doesn't need to be updated.
A SaaS firm may find it simple to purchase services using the Google Cloud Platform (GCP).
As a result, SaaS systems have the same level of security as Google services. It makes it simpler for founders to build and scale a website without being concerned about data leaks.
Benefit 2. Scalability
A scalable cloud is an optimum environment to deploy a SaaS service. Additionally, integrating with other parties is simple.
It is simpler for users to embrace improved features thanks to third-party APIs, which make it possible to incorporate third-party-enabled elements into the SaaS App.
Since users are not required to purchase a server or software, growing on the user end is simple. Only the SaaS development services that a business needs to subscribe to are required.
If their needs change, they can upgrade to a better membership. It only requires a few clicks.
Benefit 3. No Specially Required Hardware
A third-party hosting company or a lot of sophisticated software must be available to the SaaS provider. However, the platform is accessible from any internet-connected device.
Microsoft Word, for instance, requires Windows 10 and a processor that is at least 1 GHz.
However, Google Docs is a SaaS platform that doesn't require unique technology to write long-form content.
Benefit 4. Secure and Well-Designed Database
The industry-standard security protocols for SaaS database providers are SSL and TLS encryption. Because data security safeguards user communications and data, providers spend less on it.
Even more, security is required by some businesses. HIPAA compliance is a requirement if you're talking about creating a website for a US-based firm or an app for the healthcare industry.
This also applies to GDPR compliance for startups in Europe.
SaaS enables quick and straightforward integration of different protocols. For instance, you can leverage third-party connectors.
Now let's discuss how to develop a SaaS product.
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How to Develop a Software-as-a-Service Application?
Let's look at the checklist for the seven stages of the life cycle for developing a software-as-a-service application:
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idea validation
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Describe the prerequisites
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Frontend and backend development,
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UX/UI design
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testing to ensure quality
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assisting with and supporting the product launch
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SaaS product scaling
Let's discuss each thing on the list in turn.
Step 1: Idea Generation and Validation
Product conception and validation are the two most crucial steps in your creation process. The creative process known as ideation produces ideas and conveys them to the development team.
On the other hand, validating an idea before it is used in core development involves determining whether it is viable.
The startup carries out the preliminary round of idea validation. The technical parts, however, are handled by the development partner.
This checklist will help you to generate ideas and validate your SaaS product.
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Make a SaaS concept.
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Conduct an extensive market survey,
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Define the technical parameters that are required.
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Make a prototype of your application.
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Reexamine the conformance of the prototype to regulatory laws.
When you have a concept in mind, it's time to move on to the design stage.
Step 2: UX/UI Design
User experience and user interface design are UX/UI design phases for a SaaS solution.
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UX refers to the creation of a platform blueprint.
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UI is the name of the futuristic platform's look and feel.
It is crucial to remember that every button, icon, and form in the layout are extra features of this platform.
Drawing a button is quicker and less expensive than making one. Each button has infinite connections that can be made to various objects, computations, or integrations.
When building the Minimum Viable Product, keep the design in mind to stay within budget.
The design can be used to determine the cost of development and to divide the process into milestones.
It is a very condensed representation of the design. Our guide to creating a SaaS platform has further information.
Step 3: Testing and Development
SaaS development is about turning a design into an existing platform. This is what we mean:
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The designer will provide the UX/UI design files.
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The backend engineer then writes the code.
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The frontend developer connects the backend to the front end and deploys the design to the server.
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The QA tester creates and runs tests to identify and report bugs and then manages fixes.
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The project manager coordinates and manages everything from A to Z.
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Because different companies have different requirements, it is challenging to define the development process in depth.
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Some businesses employ a fixed-price model with a fixed scope and fixed team structure.
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Others employ a time and materials strategy and have the flexibility to change the scope and size of the project or team.
However, this definition focuses on the critical elements of the application development process.
Now let's discuss product upkeep and introduction.
Step 4: Product Launch and Maintenance
Here is where the SaaS platform will be released via GitHub or AWS CodeCommit.
The center of the activity is the DevOps Engineer. This team member has substantial expertise in managing the launch phase of the software.
Maintenance comes next.
Lack of budgeting for business maintenance is a standard error by tech entrepreneurs. This needs to be done immediately away during the planning stage.
SaaS maintenance costs should be at most 25% of your spending for new software. To create your software-as-a-service offering, you need $100,000.
Your maintenance budget should be at least $25,000 per year.
Step 5: Product Scaling
Let me make a few critical remarks before we continue. Although founders don't frequently consider it, it's vital to draw potential customers when the idea is still being validated.
You are one of these founders; we're sure of it.
Let's stick with the notion that your platform will be operational once you have clients.
It would help if you continued to gather consumer input for this step. There are several ways to gather consumer feedback, including surveys, customer interviews, emails, etc.
It is crucial to take this action.
Your spending on scaling and maintenance will be concentrated on the following, regardless of who your target audience is, what market sector it is, or whether it is a B2B or C SaaS:
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New features added
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Analytics and monitoring
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Product enhancement
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Support
Now that you know the stages involved in developing a Software-as-a-Service product.
Let's examine the team and technology stack needed.
Read More: How to Develop a SAAS Product Step by Step?
A SaaS Development Team and Tech Stack
There are many ways to hire and organize the software development team to create a customized SaaS. Let us recommend the best one.
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Project Manager
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Business Analyst
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UX/UI Designer
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Backend Developer
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Frontend Developer or Mobile Developer
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QA tester
The tech stack supports this. Backend and frontend technology can differ based on business needs or team preferences.
Here is a list of the tech stacks that will assist you in producing an MVP.
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Backend technologies |
Frontend technologies |
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Server: Nginx Language: PHP Laravel, Node.js Databases: MySQL, PostgreSQL, Redis Hostings: AWS and Vultr |
Libraries: Vue.js and React Languages: HTML 5, CSS 3 and JavaScript Mobile frameworks: React Native, Flutter, Objective-C, Swift, Kotlin, Java |
Let's now focus on the SaaS development challenges.
Overview of SaaS Development Challenges
Let's look at the most common pitfalls your development team might encounter.
Problem 1: Integration of Third-Party Services
In typical SaaS software, numerous features are incorporated into the platform; some of these features were created by outside developers and integrated into the Software-as-a-Service via APIs, while others had to be constructed from scratch.
The payment system is one of the most noticeable third-party elements in SaaS software. Users can utilize this feature to pay for subscriptions or carry out tasks connected to pricing or monetization.
The detailed technical requirements make integration challenging.
SaaS platforms link the most popular payment processors with Stripe, PayPal, and QuickPay. Each payment platform has its API documentation to assist users in the implementation process.
The most excellent solution for this issue is to hire a talented development staff.
Third-party integrations will be tested both manually and automatically by a skilled QA staff to make sure they function correctly.
It's essential to remember that the kind of third-party integration you'll require relies on the primary purpose of your platform's software-as-a-service.
Challenge 2: Maintaining a Secure Database
SaaS programs hold many private data that may be viewed from any device with a web browser. This makes it more vulnerable to hacking.
SaaS database service providers secure user-to-server and user-to-user connections using SSL or TLS.
However, more than this, protection is needed to safeguard the information saved by SaaS solutions.
Nations are now passing laws that guarantee security and direct platform development. American healthcare software is an example of HIPAA compliance.
Startups must seek out and hire SaaS firms to assist them with their development requirements.
The team must adhere to these procedures from the start of development.
Challenge 3: No-Downtime Deployment
The platform must be regularly updated. The platform can sometimes be difficult to access during maintenance.
Traditional systems will notify users of any downtimes when updating software. Most Software-as-a-Service platforms must, however, remain online at all times.
Thus their maintenance teams use a no-downtime deployment approach.
Popular tactics that don't require downtime include blue-green.
The application release methodology regularly moves users from an older platform version to a newer release. Both are offered.
The green environment is the more recent iteration, while the blue one is the older one.
The blue environment can be used as a template or stand-by for one fault.
Challenge 4: Management of Subscription Lifecycles
Software-as-a- The service has many features, and one of the more intricate elements is a subscription, which includes:
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Subscribing
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Trailing
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Upgrading
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Canceling
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Unsubscribing
The subscriber list management is the focus of each of these checkpoints. There are two ways to go about making them.
One is to start from scratch and use your subscription system. The second one takes advantage of APIs.
Let's discuss the distinctions between each so you can choose wisely.
When creating a system for managing subscribers, you have two choices.
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Option 1 - Use an External API |
Option 2 - Create your solution from scratch |
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You agree to use an external API to allow you to manage subscriptions to your SaaS. This is an easier and less costly method. Before integrating a third-party solution into a Software-as-a-Service, you should budget a fee for API maintenance. |
Alternatively to using an API externally, you can create your subscription management system entirely from scratch. It's more expensive as a developer would have to code the entire process into the Software-as-a-Service. But, the payment is made only once. It is also important to note that your subscription platform will require a lot of research and implementation. This option allows startups to have a more tailored subscription system that is better suited for their purpose. |
We have covered all significant components of SaaS development. Let's now discuss the pricing of SaaS development.
What is the Cost of Developing a SaaS Application?
Minimum viable product SaaS development costs range from $60,000 to $200,000.
This subject will only be briefly covered in this essay.
The precise sum will depend on several variables, including the developers' location, the application's complexity, and the kind of team working on the project.
Only the most significant pricing factors have been discussed. Please read our article on the price of creating a SaaS platform.
Let's discuss the price per team type to gain a better understanding.
Read More: Why SaaS product development has become reasonable solution for many businesses?
The Types of Teams Define Costs
Your SaaS app's development costs might be significantly influenced by the type of team you hire.
Team members at startups have a variety of options. If you have done some market research, you might need clarification on which SaaS platform is best for you.
Starting, let's determine how much each team type will cost. We'll then go into great detail regarding their subtleties.
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Types of teams |
Average development cost, $ |
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In-house |
120,000 |
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Agent local |
180,000 |
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Freelancers |
45,000 |
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Agency to outsource |
60,000 |
Instead of trying to be the cheapest, a SaaS provider should focus on getting the most for their money. You ought to aim for the finest companion.
These are the types of teams you might consider as partners:
Type 1. In-house Development Team
It's a simple situation here. You publish a job advertisement to the general public, ask prospective developers to take a test of expertise, and then make your choice.
You can meet with them daily with this option, giving you complete control over your process. For rapid fixes, you may always provide them with a call.
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Pros |
Cons |
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In-house developers will often work in your office, so they will have a better idea of the project. Except where permitted, third parties are not allowed to have any influence on your project. This team type has stricter security protocols. You will also have complete control over the source code, ensuring that you are 100% responsible for the project. |
It is difficult to hire an in-house team of developers as startups have to pay taxes, payroll, medical expenses, and work space. It is a time-consuming and costly process. There's no way to know if you will find a team worthy of your attention, even if there are enough people available. Hidden costs are a common part of the hiring process. To find out what the difference is, visit our outstaff calculator. |
Type 2. Local Development Agency
We refer to local development agencies with SaaS development teams situated in the US, the UK, and other high-income nations.
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Pros |
Cons |
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This is a more natural way to share ideas. This is because cultural and time zone issues are minimal. If both parties are within the same legal jurisdiction, lawsuits can be filed for contract breaches. |
This option can be very costly. To build the MVP of a basic SaaS platform idea, you might not have a limit on your budget. |
Type 3. Freelance Developers
They are independent, full-stack engineers with extensive hands-on experience creating Software-as-a-Service websites using a variety of tech stacks.
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Pros |
Cons |
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A freelance developer who has extensive experience in SaaS development can give you deep insight into the system’s workings. |
If they get a much higher offer, freelancers might abandon your project halfway through. Your influence is minimal on the process. |
Type 4. Outsource Development Agency
Outsourcing development companies have the potential to reap the benefits of other models of hiring with little risk.
Outsourcing development organizations offer committed staff to assist businesses in developing technological solutions in other nations.
No matter how complex or extensive your ideas are, software outsourcing companies can help you make the most of them.
These platforms need further functionality, such as blockchain technology or machine learning. SaaS development can be significantly benefited from outsourcing.
The best approach out of the four is this one. Germany, the United Kingdom, the United States, and other high-income nations are where this technique is most widely used.
Like other things, it has advantages and disadvantages.
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Pros |
Cons |
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It has the highest cost-value ratio of all options. These services also provide the added benefit of having access to a highly skilled development team consisting of business analysts as well as project managers who use agile methods. |
They have their pros, just like other options. You will need to constantly monitor team activities and ensure that they are in line with the founder's vision. This can be a temporary advantage since any comprehensive development team will naturally include a founder. |
Let's now discuss how to find reliable SaaS partners for yourself.
How to Find a Reliable SaaS Development Partner
Finding the right development team is essential to producing a successful SaaS product.
The wrong team might destroy even the most excellent and profitable concept since the invention of technology.
Let's look at some excellent suggestions for finding a reliable companion.
Tip 1. Expertise
Before choosing a SaaS development team, it is crucial to consider their prior work and grasp the nuances of Software-as-a-Service.
More than that, software engineering is required for the ultimate SaaS solution. A team that is familiar with the market is also necessary.
Select a team only if they have proven to have a solid grasp of your business model and technical proficiency in software-as-a-service.
Tip 2. Project Portfolio
Each offer you receive will come from the best development teams.
You can see their projects by browsing their portfolio.
When discussing previous cloud computing projects with SaaS, be specific.
Tip 3. Successful SaaS-Based Businesses
In addition to the portfolio, keep an eye on the SaaS development company track records for building successful Software-as-a-Service.
If none have been constructed, consider other projects' potential to do so.
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Final thoughts
Developing a SaaS application can seem intimidating, regardless of your experience or skill level. Although we tried to offer clear, concise, and instructive instructions, this method is not faultless.
It will call for improvisation and ingenuity. Receptive to new concepts, group participation, and difficulties. Utilize them to support the expansion of your SaaS product!
