Software as a Service, SaaS, is transforming tech industry in this dynamic environment, it redefines the way business traditionally functions. Many organizations, of all sizes, implement one or other form of SaaS solutions, they increasingly move ahead with SaaS adoption with every passing year. According to Statista, SaaS market value is estimated to reach approximately 247 billion U.S. dollars by 2024 from 197 billion U.S. dollars in 2023, a significant trajectory, we can say.

SaaS development has made a paradigm shift in companies, they are now open to a world of less explored possibilities and opportunities. Organizations that adopt SaaS have the opportunity to explore skilfulness and creativity, they can evolve while they manage as well as exceed customers’ growing and changing demands. SaaS is mostly characterized by booming growth and modernized IT infrastructure, this necessitates us to understand the fundamentals of SaaS, maybe we can start with the most primal question of what exactly is SaaS. Additionally, we will cover various aspects associated with SaaS product development:

• What is SaaS
• Why do you need SaaS
• What are the Steps Involved in Developing a SaaS Product
• Some Key Considerations in SaaS Product Development
• How Much Will It Cost to Develop a SaaS Product
• What Challenges Are Faced in SaaS Product Development and How to Address Them
• What to Avoid in SaaS Product Development
• What Are the Best Practices to Follow

What is SaaS

In simple terms, SaaS product is a software that you can use from cloud platforms. Unlike traditional software applications, SaaS apps do not require you to install and deploy in on-premise platforms. SaaS is maintained by third party service providers, these products come packed to use readily. It runs on subscription base, this means you need to pay subscription fees to use SaaS software, it depends on the amount of time you use. What’s fascinating about SaaS is you do not require sizeable hardware infrastructure to deploy them, SaaS products come with ready-to-use way, and moreover, the service provider comprehensively covers the maintenance.

SaaS can be understood in a simple way, probably with an example. Let’s take Netflix for example, you can use this app to watch movies and TV shows, but you do not need to host this app. Its service provider takes care of hosting the app and do maintenance and updates, this is a classic example of how SaaS products work. Like how you pay subscription fees periodically to use Netflix, in a similar way, you can use SaaS products on the go.

Why do you need SaaS

SaaS products increasingly witness a faster adoption by various businesses, the main reason being SaaS addresses the gaps hitherto that are challenging for many businesses. The following reasons underscore why you need to consider adopting SaaS solutions.

Faster Time-to-Market

As you’re able to use SaaS products on the go without complex installation and deployment, this increases time-to-market. This gives you a competitive advantage, you can readily start monetizing using SaaS apps. It comes as a critical phenomenon especially when you try to address a market gap, because being first in the market gives you a formidable position.

Lowers the Cost

Traditional software development is a big process, it takes considerable capital to set up or hire a development team, purchase license and to follow other procedures. But SaaS simplifies the overall process, it cancels out the hefty initial investment, you can use apps on a simple subscription basis, this helps you predict expenditure which will be highly beneficial for small businesses and startups.

Flexible and Scalable

SaaS offers scalability to firms that use its apps, it facilitates businesses to scale up or down the usage as per the demands. On contrary, traditional software works in a kind of rigid setup, scalability is not an option with that. Furthermore, you will be able to integrate SaaS apps with your existing systems, you can easily do this without being fully dependent on IT team. Moreover, since SaaS apps are hosted from cloud based platforms, you can use these apps from anywhere, this makes it simple even for businesses operate in remote setup, it further facilitates easy collaboration.

Easy to Upgrade

It won’t be without any solid reason why SaaS is considered as a modern solution that a business needs. SaaS apps automatically upgrade their versions, the service providers take care of that. They are always ready with recent upgrades, you do not need to manually update every time. This helps businesses to keep the apps in line with recent developments and changes in demands.

Better Security

SaaS service providers ensure their apps remain intact, this is from different forms of security breaches and cyber threats. They provide necessary security as they implement robust security measures, in addition to that, if you prefer, you can also secure your cyberspace. Additionally, you will be able to check for security upgrades periodically, the service providers also facilitate easy backup and disaster recovery measures.

So, the reasons to choose SaaS products are profoundly significant, here’s the digested benefits with some more of them:

• Faster time-to-market
• Less initial investment
• Easily flexible & scalable
• Easy upgradation features
• Highly secure applications
• Competitive advantage
• Better customer satisfaction

What are the Steps Involved in Developing a SaaS Product

Now that you know about what SaaS can do to your business, it’s time to focus on the actual steps involved in developing a good SaaS application. As you know, the need of businesses differ, as a result, SaaS applications need to be developed and remodelled as per the business requirements.

Conduct a Market Research

What’s more important than jumping right away into developing SaaS products is an important question to address. A thorough market research helps identify the opportunities as well as challenges prevailing in the market, you can use these insights to develop a SaaS application that correctly addresses the gaps. You got to understand customers and their pain points, this helps you come up with better SaaS solutions.

Define Scope of the SaaS App

Once you are clear of the product that you want to develop, it’s time to clearly define the scope of the SaaS app, this needs a detailed plan. Make the SaaS application’s features, key functionalities, user experience, and other features defined well, based on this you can formulate a plan and work accordingly.

Choose your Cloud Model

Since SaaS apps run on cloud platforms, you need to pick the right cloud service provider, to do that, carefully analyze different cloud providers, then pick the right platform. While doing that, check for cloud security measures, the pricing and scope for flexibility and scalability, these features help shortlist a suitable cloud service provider.

Develop SaaS Applications

Set up a conducive environment for design and development of your SaaS application, you can either utilize or hire an in-house team, or another option which is to partner with a SaaS development company, they help you design the right SaaS software as per your needs.

Your overall development process is fast paced by adopting to agile methodology, this helps the development team to work in sprints. This approach facilitates developers to easily collaborate among themselves, it improves the speed as well as efficiency.

Some Key Considerations in SaaS Product Development

While developing SaaS products, there are several key factors that go into the making of SaaS application development process. The factors could be about the composition of the development and testing team, what is the projected cost of the project, what kind of framework and tech stack that you use, and many more. Here, we will look through some of them one by one.

Understand your Audience

Clearly understand who will be the consumers of your SaaS application, or if you are planning to develop one for your internal use, consider which departments it will benefit. It helps in a great way to ideate and develop application, defining its interface, and costs associated. It helps your product align with user needs if you take into account the demography, tech proficiency of users and other factors.

Setting up a Team

The first and foremost thing you got to do is to set up your team or identify a right SaaS development partner. Your SaaS application’s performance depends on the proficiency of people who work from developing to testing. The composition of your team also matters, it takes right number of talents across different departments. Here are some core experts you may require:

• Project Manager
• Developers
• UI/UX Designers
• Testing & Deployment Professionals
• DevOps Experts
• Business Analysts
• Scrum Master
• Quality Assurance Engineers

Modify your team’s composition as required by your project.

Choose the Tech Stack

After finalizing your team, it’s time to move ahead and choose your tech stack and a proper framework to start building your SaaS product. Always go for relevant as well as latest technology, because the tech landscape is evolving constantly, and to keep in line with these changes, it’s important to choose your tech stack that fulfils your needs completely. To decide on the right framework, let’s explore some important ones.

Angular

Angular, comes as an upgraded version of Angular JS from Google, is a good framework that you can use especially for SaaS development, it helps with code consistency and comes with components that you can reuse.

ReactJS

This open source framework is suitable to carry out UI and UX, you can create fluid user experience for SaaS applications using its components. Its flexibility in reusing various components is coupled with better rendering features, this comes handy when developing complex interfaces.

Django

It is a Python framework, suits well for developing SaaS applications of different scales. If you look for faster deployments, then it’s your go to framework, this is mainly because it has built-in interfaces that you can access easily.

Express.js

A strong backend development is facilitated by Express.js, based on Node.js, it’s used by several tech giants. This model helps you build backend apps that are API-based. You’re able to build backend and server side works with this framework efficiently.

Laravel

For faster developments, you can utilize Laravel, it’s a PHP based framework that uses object-relational mapping. It helps you direct access and manipulate data, also comes with a comprehensive library with pre-programmed functionalities.

These are only a few frameworks that are best in Software as a Service product development, you will get to many other frameworks when you explore further.

How Much Will It Cost to Develop a SaaS Product

SaaS product development costs depend on the size and type of SaaS product you build, there are many factors at play when it comes to determining the cost of SaaS products. On an average, it costs around $40,000 in case of micro SaaS products, this can go up to $500,000 and even beyond that in case of large SaaS applications.

The SaaS pricing also varies based on SaaS application scale:

• Micro SaaS Applications- $10,000 - $25,000
• Basic SaaS Applications - $25,000 - $50,000
• Average SaaS Applications - $50,000 - $150,000
• Large Scale SaaS Applications - $150,000 - $450,000

What Challenges Are Faced in SaaS Product Development and How to Address Them

No technology comes without challenges, likewise, SaaS also has its unique challenges, they need to be addressed carefully. Let’s look at them.

Issues with Integration

SaaS application works at its best only if it can be integrated with your existing systems, they can be on-premise systems or other cloud system. To address this, make sure if your SaaS consists of properly documented APIs and has provisions for integration.

Issues with Scalability

Cloud based SaaS applications are known for their ability to scale up or down, however, the demands are also increasing on one side, this puts extra pressure on SaaS applications to be scalable as per the changing demands. Ensure your SaaS app is structured to handle demands and sudden surges. For better results, it’s best to keep in mind the scalability of the application right from the planning phase.

Security Problems

Cyber threats increased multi-fold from previous years, there is an alarming rise in the number and size of breaches happening. This brings us to the concerning question – Are my SaaS products safe? Cloud service providers ensure the platform is safe and ready to counter any threats that may occur, however, from your side, you need to implement security measures. Below measures could help.

• Data Encryption
• Access Control
• Multi-Factor Authentication
• Security Audits
• Zero-Trust Architecture

Choosing the Pricing Model

It is a challenging as well as daunting task to come to conclusion about the pricing model that suits you best, this is because of plethora of options available. Some common pricing models include:

• Flat-Rate Model
• Freemium Model
• Usage-Based Model
• Tiered Model
• Per Active User Model
• Per Feature Model

Understand that each pricing model has its own set of advantages and limitations, it’s best to understand your usage and pick the right pricing model that suits you best. It’s a critical one, you need to find the right balance between the service you provide to your customers and fairly compensated for that.

What to Avoid in SaaS Product Development

You need to go a step further than learning about the benefits of SaaS development; it is important to know what not to do too, this sets your development path clear.

• Not taking into account the scalability for future needs
• Overwhelming users with complicated interface and features
• Deploying applications without thorough testing
• Insufficient research of market conditions
• Not taking extra efforts to implement security

What Are the Best Practices to Follow

To successfully build and deploy SaaS applications, make sure to adhere to industry best practices, the reason is that they are already well tested under various stress conditions real-time.

• Maintain Centralized Operational Hub
• Ensure Heightened Security to your SaaS Products
• Go for Low-Code & No-Code Platforms
• Use Microservices rather than Monolithic Architecture
• Go for Multi-Tenancy instead of Single-Tenancy
• Take up the Approach of Minimum Viability Product – MVP

To Wrap Up

To develop a successful SaaS product, it requires careful analysis of market and proper execution. Researches and studies in this field project that the positive impact of SaaS is going to be multi-fold in the coming years, an increased investment pie in tech landscape may go to SaaS. These projections signal businesses to adopt SaaS early, they can benefit by building viable SaaS products. It’s also best to partner with a SaaS development company, like Tech.us, they will take care of building SaaS applications of your need, where you can focus on strategizing how to best get returns from SaaS applications.