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You have to be aware about all the advantages and disadvantages of SaaS application development process to make proper decisions for hiring a development team, marketing of the product, and allocating the budget.
In the 21st century, the SaaS application models gained a lot of popularity as one of the most beneficial model for every business and almost every type of software. The SaaS solutions help developers as a tool to fix any issues or problems of users and for business owners, it is a profitable product.
Building and deploying a Software as a Service application requires money, time, resources, and most important a thorough research of the market, just like various other business projects. However, in between the way of successful-cloud based app development and execution, there stands a complex SaaS development process.
As a renowned SaaS development company, we are very well aware that this development process is not only about deploying an attractive solution in the market, but it is about building a software from scratch so that customers can use it as per their convenience. In this article, we will be discussing about every stage of SaaS solution development and how you can introduce a unique software for your users. But before going with the development process, let us first understand the definition of SaaS application.
What is a SaaS Application?
A SaaS solution is a software which is licensed through Software as a Service business model. With the SaaS application development approach, the software is not delivered to users on a lifetime license basis or till a new version is released with latest updates. Instead, companies offer software to users as SaaS, typically through subscription model. As the SaaS services are hosted on cloud, users do not have to physically install them on their systems. The hosting of SaaS solutions on cloud offers a handful of advantages:
Cost Efficient
With SaaS, users do not have to purchase and maintain expensive hardware, they just have to pay for the services they use.
Scalability
As per your business needs and requirements, you can easily upgrade or downgrade the membership plan in just few clicks.
Reliability
A cloud is a network of servers connected with various servers from all over the globe. So even if one server goes down, your app will still remain online.
Security
Cloud service providers integrate high security measures in the SaaS solutions to ensure that your data is safe and stored in a secured place.
Cloud hosted applications can be easily accessed from every corner of the world. Moreover, the users will always have the access to latest version of the solutions as they do not have to download and install the updates manually on their devices. As SaaS solutions are cloud based, they have major advantages over traditional or on-premises applications.
The difference between SaaS solution and on-premises solution can be easily illustrated by a simple example. Let's consider about a product that recently migrated from traditional software to SaaS model; Adobe Photoshop. If you know any employ who works as a visual creator, you will know that Photoshop is in action. Looking back, earlier, Photoshop was made available to users with a one-time price. Once the user has paid the price, they were given a lifetime subscription to a particular version of Photoshop.
But now the coin has flipped and things have changed. As Photoshop can also be accessed directly though cloud, it now no longer offers a one-time payment based services to users. Instead of paying a one-time cost for accessing the software, users now have to sign up for a monthly subscription on Adobe Creative Cloud. The monthly subscription is cost effective as compared to the old model. Moreover, the users get access to latest features and version of Adobe Photoshop.
Read Also: Software As A Service (SaaS) To Fuel The Growth Of The Lease Management Companies
Things to be Considered for SaaS Product Development
There are various factors that needs to be considered before developing a SaaS application. These are divided into two categories as per their level of technicality.
Technical Characteristics of SaaS Applications
A seamless SaaS application offers flawless services in following aspects:
Databases
Although it is important to have secure, reliable, and flexible databases, but it is also important to have a specific database that suits your business. The database that you should choose depends on various factors such as data load and type, scalability, budget, and programming language.
Scaling
Scalability is an important part of SaaS development process from the beginning. The software you are developing will be scaled in future bothy vertically and horizontally, so make sure it doesn't create any problem for you in future.
Frequent Updates
There is nothing like a perfect software. The needs and expectations of client grow with every single passing day, so your software must accommodate them. Rolling out regular updates for your SaaS solution is must to keep it running smoothly on end user's devices.
Third-Party Integrations
By enabling integration of third-party applications, you can increase the marketability of your SaaS solution. So build a solution that can easily consume or accept the integration of APIs as well as documentation. Moreover, integration of popular bots such as Slack can help you to win the market.
Non-Technical Characteristics of SaaS Applications
Being a scalable piece of technical software is just a half part of the success of your SaaS solution. The remaining part depends on the user-friendly, so you should make sure that your solution has:
Market Fit
Before beginning with the development process, you should first understand the needs and demands of the market. Analyse the requirements of the market and then visualize the position of your solution and then move forward accordingly.
Client Acquisition Process
As you are developing application for your users, you should ensure that it is appealing and targeted to right audience. So caring for your clients means creating an application with fair pricing policy and lifecycle.
Various Packages
Offering multiple subscription packages to your users for your SaaS solution will help you in attracting more clients. Moreover, the users will love your application as they will have the option to choose the subscription model as per their business needs. Now as you have a knowledge about the essential technical and non-technical characteristics you need to pay attention to, finally it time to being with the development process.
Benefits of SaaS Application Development for Businesses
The increasing demand of SaaS solution development can be explained by the benefits it offers to businesses. But what are those benefits? Let us find out:
Quick setup
As compared to on-premises software, SaaS solutions do not require any downloading and installation of the software. This significantly reduces the time required for deployment of the software on device.
Cost-effectiveness
The SaaS solutions model offer various choices to users for subscription plans whereas with the on-premises software, the users have to pay for license with an upfront cost.
Effortless updates
As there is no need to download the SaaS solution, the users always have access to the latest version of the software.
Great flexibility
With the SaaS software the users are open to multiple subscription tiers. They can choose the model which suits best to their growing business needs.
Read Also: How to Build a Cloud-Based SaaS Application in 10 Steps
A Step-by-Step Guide for SaaS Product Development
So now you have decided to build a SaaS solution for your business, it is important to study and involve every aspect to transform your idea into a tangible product. Here is guide from research to deployment to begin with you SaaS web app development:
Identify your Target Audience
Before beginning with the development process of your SaaS application, you must know who will be using your application. Without having a knowledge of customer's need, you will end up in offering an average solution to multiple audiences. So focus on the needs of your clients before beginning the development.
Market research is an important approach that decides the fate and success of your SaaS solution development. So do a thorough research about your industry, define your niche, explore the needs and expectations of your customers, and then create an accurate buyer persona for your SaaS solution. Moreover, for better results, specify geographical location and age groups, lifestyle and purchase patterns of your potential clients.
These insights will help you gain a clear understanding of what they want today and what they will want tomorrow. This way, you can build your product keeping those needs and wants in mind.
With thorough market insights, you can have a clear understanding about what your customer wants today and what will be their choices in the future. In this way, you can offer an excellent solution to cater the needs of your clients.
Define Why Users Will Use your SaaS Product
Now as you have an idea about the expectations of your users from your SaaS solution. Although, you must filter out the core features from the list of desired functionalities.
To determine the core features that, you should be including in your SaaS product, consider it as a solution, not as a product. User's persona will help you to know about the problems that your users will be facing and identify how your solution can serve with the best services to your users. The more clarity you will have about your users, the more accurate will be your SaaS solution for them. To increase the chances of generating profits and revenues from your product, you should ensure that your solution offers recurring benefits to your users.
Outline an MVP
By this point, you must now have knowledge about your targeted audiences, their needs, and how your solution will be answering to those needs. So, now is the time to build a Minimum Viable Product (MVP) for your SaaS product. An MVP is the most basic version of your final solution to derive reviews and value from your users. The main purpose of and MVP is to know whether your SaaS solution is feasible for market or not.
Launching an MVP before launching the final product is important as it will help you to know whether your solution is best fir for market or not. If you launch the final product directly, there are chances that your users will not like the solution and you may end up in loss of huge money and resources.
To begin with the development process of your MVP, you must prioritize the functions and features that you have filtered out earlier. Divide these features into two categories: nice to have and must-have.
In the "must-have-features", include the most essential features that will serve as the core functionality of your MVP. While creating an MVP, you should enable your MVP with user needs. The user should be able to choose what they want to do the features you are adding into your MVP. Creating an MVP of your SaaS solution will help you to know about your ideal customers and whether they want the solution you are offering or not.
Decide Technical Requirements
Apart from core additional features, it is also important to note down other technical requirements of your SaaS product. Before beginning with the development process, you should decide the programming language, UI components, and frameworks. Otherwise you will end up re-writing the code as per the changing scenario. The options for data security and privacy, and customization requires attention before the development process begins. Another thing that needs to be consider is the permission for integration of third party APIs and services.
To maximize the value of your services and products, you must allow the integration of other applications so the users can do more than one things with your software.
Integration of smart outbound tools can also help you in increasing revenues of your business. However, you must ensure to streamline your business process through following some successful integration strategies.
Choose a Pricing Model
Featuring a carefully-vetted pricing model for your SaaS solution is also an important factor for improving the market value and engagement of your product. Keeping the buyer's persona in mind, decide the pricing tiers for your SaaS product so that every user can feel the value of choosing your solution. You can offer a variety of pricing models to you users.
For SaaS products, the most beneficial and successful strategy is to offer free version of your solution with some advanced features that users can avail by purchasing premium subscriptions. This will help the users to know about how valuable your product is and if they are once satisfied with your services, they will prefer buying premium subscription.
Another pricing tier you can offer to your users is a fixed annual or monthly plan after the free period ends. As the users will know about the potential of your product during the trial period, they will think about buying the full version of your SaaS solution.
Finally, you can also go with the one-time payment option model where the users can buy your product for once and then use it for lifetime.
It is important for you to consider the purchasing patterns according to your target audience as well as the type of services your SaaS solution offers.
Determine the Total Budget
The budget cost of SaaS product development is affected by various factors such as designing, development, and promotion of your product in the market. Without careful planning of financial requirements, you may find it difficult to lead your idea and will result in going over budget.
The total cost of developing your SaaS solution depends on the scalability, marketing strategies as well as functionalities of your product. Apart from this also consider some regular costs such as maintenance costs, server costs, and software monitoring costs. Also, be prepared for unexpected issues and delays during development. Indulging every aspect of budget will help you to face any unexpected challenges and keep the development process afloat.
Put Together the Development Team
Now as you have every detail regarding your product, it is time to begin with the real work. Undoubtedly the development stage is most significant as well as most vulnerable stage during the application development process. TO ensure that you get best of your services, choose a trustworthy SaaS app development firm to ensure development of best solution.
Team Required for SaaS Solution Development
Although the need of team members varies as per the requirements of business, there are various roles you need to fill for developing a SaaS solution.
Project Manager
A role who is responsible to plan the whole development process, assign tasks to team members, and follow up with the team as well as the client on regular basis to ensure that the development process is going in the right direction.
Business Analyst
A person who analyses the scope and role of the product in the market and creates a documents for progress as well as the business model for you.
UX/UI Designer
A person who creates and implements the user interface of your application to ensure that it is easy-to-use attractive, and works well on end user's devices.
Backend Developer
The person who handles and works on the server side part of your solution to ensure that it functions well as per the plan.
Frontend Developer
A person who looks for the server side management of your application to turn the codes into design with JavaScript or frameworks.
QA Engineer
A person who performs multiple test to eliminate bugs and errors from the final product so that it can run smoothly on the user's devices.
Depending the size and requirements of the project, the team size may vary and you may need other technical specialists such as content writers, DevOps engineer, and a marketing specialists. We recommend partnering with a professional Software application development company that can cater to your project needs and demands.
Cost of SaaS Application Development
The major share of development costs is the salaries of the software developer and other members of the development team. If you are working with an in-house team, you must be prepared for adding the cost of hiring new tech specialist to the team. If you choose to go with outsourcing software development team, the price may include hourly charges of the developer plus the fee of the vendor.
As per the latest survey report from YouTeam, the average rate of developers varies around the globe:
- United States:$46.32/hour
- United Kingdom:$71/hour
- India:$30/hour
- Ukraine:$37/hour
Looking at the above mentioned figures, considering to outsourceSaaS web application development to a vendor is the optimal choice and cost-effective approach.
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The Key Takeaway
There is no doubt that SaaS model has opened up a wide range of opportunities for businesses. As SaaS products do not require any installation, updates, configuration, and also they do not have any compatibility issues. It is forecasted that the SaaS will be one of the fasted growing market in the upcoming five years. We hope that our guide has helped you to establish a relevance for developing SaaS solutions, and you must have a clear image of what is needed to succeed with your solution. As a leading SaaS software development company we can help you to make a product for your business that can be the next breakthrough in the SaaS industry.
