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    SaaS Application Development: How to develop a SaaS App

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    Amit Shukla

    Software as a service, also known as SaaS, is quickly becoming the standard business model for organizations that develop all types of software. In this post, we discuss why SaaS products are so popular, discuss their advantages and disadvantages, and provide practical recommendations based on our own experience on how to design SaaS products and make them profitable.

     

    What is SaaS? Use of SaaS?

    Providing software as a service (SaaS) is an approach to distributing and operating software via the cloud.

    The majority of consumers and businesses now use at least one SaaS product, which includes:

    • Cloud computing and storage (Google Drive, Dropbox)
    •  Video conferencing software (Zoom)
    • Communication software is available (Slack, Trello, Basecamp,Wrike, Office 365)
    • Software for the creative process (Adobe CC, Figma, Canva)

    Both end users and software suppliers gain from the development of software-as-a-service solutions.

    Using SaaS solutions has the following implications for end users:

    • Saving money by not having to purchase readymade expensive software for each individual user. Software as a service (SaaS) solutions are mainly subscription-based, with a number of customizable options available for individuals as well as organizations of any size.
    • Installation and updating of software is simple. Users can download SaaS items from the cloud, and they may not even need to install them, instead of running them in a web browser, according to the vendor. Furthermore, SaaS solutions can be automatically updated in the background, resulting in no downtime for the user.
    • Reducing the amount of time spent on data exchange Syncing files across several devices and accounts, cloud-based software provides quick access to files on any device at any time. For team members who have access to the file, this greatly facilitates collaboration on a project.
    • Scaling is simple. It is possible for users to upgrade or downgrade their plans at any time without the need to contact a technical support specialist for the removal or installation of software.
    • There should be little to no downtime. If an application receives an excessive number of requests, cloud servers, as opposed to physical servers, are able to immediately call on additional copies of the application to share the load.
    • Data security is very important. When compared to physical servers, cloud servers come with higher levels of protection by default.
    • Support for routine maintenance. The use of SaaS solutions eliminates the need for individuals and enterprises to maintain their own in-house maintenance teams. If something goes wrong, the software’s owner will take care of it by providing maintenance and updates.

    The following are the advantages of the SaaS model for software service providers:

    • Code for software that is secure. Because cloud distribution prevents end users from having access to the app’s source code, it is difficult for them to steal the code in its entirety or in part from the app.
    • Revenue that is constant. SaaS is a subscription-based business model that generates consistent revenue streams as long as clients continue to use the product.
    • The ability to update and upgrade on a regular basis. Cloud servers have the capability of creating app clones. Because of this, it is feasible to update an app without causing users to experience any downtime: a copy of the app’s current version can continue to work while the main version is being updated. When the update is complete, the updated version will be made available for use, and the prior version can be removed from the system.

    Also read: What Are Some SaaS Product Ideas That Will Take Off In The Next Few Years?

    Types of SaaS solutions

    There are two forms of SaaS software: traditional software as a service and white-label software. Traditional software as a service is the most common type.

    In a nutshell, the following is the difference between regular SaaS software and white-label SaaS software:

    Customers who use traditional SaaS software can see who owns the program code, which is a valuable feature.

    For example, any company can utilize Slack for communication, but Slack is the brand that is well-known in the industry. In addition to Zoom, Google owns Google Workspace, Adobe owns its Adobe Creative Cloud software, and several other well-known and renowned companies.

    Unight, the software we developed for Shanghai’s nightlife, is a standard SaaS solution that assists venues in selling tickets and marketing events. Unight is the most popular ticket-selling platform in Shanghai at the moment.

    White-label Unbranded SaaS software is available for purchase. Businesses and people that purchase it have the ability to tweak the program and brand it with their own logos, with little or no mention of the code’s creators, and to resell the software’s services under their own brands.

    DashClicks, a popular drag-and-drop website builder for digital marketing businesses, is an example of an enterprise-level white-label solution. Due to the usage of custom domains on websites built using DashClicks, it is impossible for end-users to tell that the websites are not custom solutions but rather third-party software.

    Website builders, content management systems (CMSs), and hosting solutions are all examples of SaaS products that are sold under a third-party brand.

    It is necessary for white label SaaS platforms to be more adaptable than regular SaaS platforms; as a result, the white-label approach is not suitable for all types of software.

    SaaS tech stack

    Nowadays, almost anything may be offered as a SaaS product, including content management systems, customer relationship management systems, creative tools, messengers, audio/video calling apps, and more.

    Certain technological solutions, on the other hand, will be required for the most, if not all, SaaS products.

    Content delivery network (CDN)

    A content delivery network (CDN) is a network of servers —which is cloud-based if you’re developing SaaS apps — that are distributed all over the world. CDNs are used to distribute the load on the network and improve the overall performance of the platform. Users will have slower response times if your SaaS platform has servers in all of the regions where it is available, which will improve their overall user experience. Examples of CDNs are Amazon Cloudflare, Nitropack, MaxCDN.

    Types of SaaS solutions

    Application programming interfaces (APIs)

    APIs are used to provide certain functionality to a program without having to create it from the ground up from scratch. The API of the social network in question, for example, allows a website to join or link your social network profile — Facebook, Twitter, or LinkedIn — and this is made possible by the API of the social network in question.

    In addition to booking flights and reservations, there are APIs for a wide range of other functions such as streaming video and chat features as well as payments, statistics, and much more.

    Multi-tenant architecture

    An application that provides SaaS services must have a multi-tenant architecture, which is also known as multitenancy. This architecture enables a single server to execute numerous apps while also allowing multiple users to access a single program through a single interface. The tenants — whether they’re apps or users — each maintain their own identity while sharing a database, which allows them to communicate with one another.

    It is the multi-tenant cloud-based SaaS architecture that allows SaaS platforms to be as scalable as possible.

    Load balancer

    Instead of distributing content across servers to provide it to consumers faster, load balancing systems spread incoming requests/traffic across different servers to improve application performance while also distributing the demand on database servers to reduce the pressure on databases.

     

    How to make a cloud-based SaaS application

    Our ideal SaaS development method will be demonstrated in this part, according to our observations. This procedure appears to be rather complicated, but it is also adaptable enough to accommodate a wide range of SaaS software.

    Step 1. Clarify your idea for yourself

    The fact that you understand your requirements — to some level, at the very least — is critical when approaching engineers. You could wish to conduct some preliminary research and survey your existing customers and/or potential platform users to find out what they require from your platform.

    • Is there a specific problem you’d like the system to help you solve?
    • What alternatives to your concept are currently available on the market, and what do they lack?
    • Is SaaS the most appropriate business model for your product or service?
    • Which model do you prefer: a typical SaaS offering or white-label software for your customers?
    • What specifications do you have in mind for your software?

    Experienced software developers will assist you in refining your idea, will provide you with solutions for your required functionality, and will estimate the cost and timescale for your SaaS development project. However, the more information you supply at the outset of a partnership, the more quickly the team will be able to begin working on the project.

    Step 2. Find developers

    Choosing SaaS developers is a serious decision that should not be taken carelessly. Software-as-a-service cloud technology is sophisticated, and SaaS platforms are frequently required to comply with local and national regulations.

    You have the option of hiring in-house developers or outsourcing the development of your product to a SaaS application development business or to independent contractors. You’ll also need to think about where you’ll be seeking developers, because software development specialists can be found all around the world, including your home country. Finding professionals can be a difficult and time-consuming procedure.

    You may learn more about the hiring process for software development partners by reading the following articles:

    • When it comes to software development, the choice is between in-house and outsourcing.
    • How to Hire Remote Software Developers: A Step-by-Step Instructional Guide.
    • In 2021, here’s how to outsource software development.

    Step 3. Research and validate your idea

    The first thing that most reputable development businesses will offer is to undertake extensive market research into your concept before proceeding. Developers require a great deal of information in order to construct a successful product, and you’ll need to make certain judgments during the early stages of development.

    • Is your idea still valid in its current form?
    • What additional options are available to handle the same problem as the one being discussed?
    • What do you have to offer that makes your product or service stand out from the competition?
    • When it comes to your platform’s target audience, who they are and what do they need from your SaaS products are important questions to ask.
    • What strategies should you employ to attract visitors to your platform?
    • What metrics should you use to evaluate the performance of your platform?

    It will be easier to establish a business plan for your platform if you have resulted from your research. It will also assist your team to prioritize features and generate road maps for developing your software as a service offering.

    How to make a cloud-based SaaS application

    Step 4. Make prototypes

    Designers will produce many prototypes to ensure that you and your team see your SaaS platform in the same way.

    • Navigation concepts serve as the foundation for user experience (UX) development.
    • Early user interface designs were developed using low-fidelity prototypes.
    • Fully Detailed, color and occasionally interactive prototypes are known as high-fidelity prototypes.
    • In order to fully understand how the platform will function and fine-tune it to provide the greatest possible user experience, it is necessary to test a prototype at each stage of the design process.

    Step 5. Build an MVP

    A minimal viable product (MVP) is a product that has the bare minimum of functionality that can be released to the public without risking failure. An MVP performs a variety of functions:

    • It assists you in better gauging the interest of your target audience.
    • Developers may put the product through its paces on real users, who can provide honest feedback. It also aids in prioritizing features for future development stages.
    • It opens the door to prospects for brand recognition and the acquisition of your first devoted customers.
    • In some instances, an MVP enables you to receive a return on your investment.

    According to the type of SaaS product you’re developing, the scope of MVP development will differ. An MVP typically only requires the most basic capabilities, as well as your unique value proposition, and its design may be straightforward.

    An MLP — a minimum loved product — can be used as an alternative to an MVP. Although an MLP possesses the same fundamental functionality as a standard product as well as a distinct value proposition, its user interface and user experience (UI/UX) are typically more sophisticated, with the goal of increasing consumer recognition and emotional attachment.

    Mobile App Development Ad

    Step 6. Launch marketing

    Marketing is a critical stage in the development of SaaS software, and it cannot be overlooked. For as long as your SaaS platform is life (which, hopefully, will be a long time after the full launch), you’ll need to run marketing campaigns, so it’s critical that you use your MVP to figure out the top marketing channels, estimate the cost of campaigns, and perform your marketing plans based on actual client data.

    Often, it makes sense to initiate marketing campaigns before a product’s introduction in order to gauge demand, increase brand recognition, and create anticipation among users.

    Another advantage of marketing is that it enables business owners to forecast future expenditures and earnings as well as examine the success of their products and services.

    Step 7. Analyze performance

    You must determine whether your platform is operating as intended or whether it is necessary to make adjustments to its functionality, marketing, or overall company plan and strategy in order to improve its performance.

    It is possible to examine MVP and marketing performance using unit economics, which is one of the most useful techniques available.

    With the data you’ve collected from performance analysis and customer feedback, you’ll be better equipped to make more informed decisions and continue to build your software as a service product.

     

    How much does it cost to develop a SaaS app?

    Given the fact that almost any software can be converted into a SaaS platform, providing precise predictions for a generic SaaS application is nearly difficult. When compared to video conferencing software such as Zoom, for example, a fully configurable white-label website builder with multiple themes and built-in capabilities will have a completely different set of functionality than the latter.

    Depending on the sort of platform you want to build, its feature set, the market segment you want to target, the development timescale you choose, and the price tag of the development team you choose, the cost of developing your product will be higher or lower.

    The cost of establishing a SaaS platform is comprised of several components, including extensive research and design prior to real creation, testing, and marketing efforts. It also involves a number of specialists, including:

    • Project manager
    • Team Leader
    • UI/UX designer
    • Backend developer
    • Frontend developer for a web-based SaaS platform
    • iOS and/or Android developers for mobile app
    • Quality Analyst

    According to on our experience, the development cost for a typical (white-label) web-based SaaS platform will start at approximately $15,000 for an MVP and will increase as you add and fine-tune functionality. For a platform in the form of a mobile application, expect to hear figures in the range of $30,000 and upwards per platform.

    Two-factor authentication is well supported by Twilio’s Authy app. An app of this nature could cost anywhere from $5,000 to $15,000, depending on its purpose and capabilities.

     

    Possible pitfalls in SaaS platform development

    It is commonly known (and appreciated) that cloud-based platforms come with excellent levels of security by default, and that they have virtually no downtime. It is not true, however, that a cloud-based product can’t go wrong in any situation. Cloud-based platforms, on the other hand, have their own set of landmines.

    One of those hazards — and, we believe, the most significant — is the cost of cloud servers. Cloud service providers service for everything, including:

    • Requests for content, both incoming and departing
    • The amount of information that is brought in and out
    • The number of machines that you employ.
    • Cloning your servers at the time these machines are operational
    • as well as further information

    Because of this, setting up cloud servers is not a simple undertaking. You require skilled developers who can distinguish between what you require and what will cost you money but provide little or no advantage to you.

    The second point to consider is whether or not your software will be in conformity with the legislation and laws of the countries in which it will be launched. To be sure, cloud servers provide extremely high levels of data protection. Local restrictions, such as the General Data Protection Regulation (GDPR) in Europe or the California Consumer Privacy Act, may, nevertheless, need the implementation of specific protections. It’s critical not to rely just on cloud service providers to handle everything.

    It is important to work with a reputable and competent SaaS development company that will assist you in researching the topic and implementing necessary functionality to avoid falling into any traps.

    We hope that this post has been of assistance in answering at least some of your queries about how to construct a SaaS application for the web or mobile devices. Creating a SaaS product is a successful business venture that will continue to gain in popularity in the future, according to industry experts. The time has come to get started.

    In the event that you have any further questions regarding how to design a SaaS online or mobile application, please do not hesitate to contact us for a no-obligation consultation.

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    The Author
    Amit Shukla
    Director of NBT
    Amit Shukla is the Director of Next Big Technology, a leading IT consulting company. With a profound passion for staying updated on the latest trends and technologies across various domains, Amit is a dedicated entrepreneur in the IT sector. He takes it upon himself to enlighten his audience with the most current market trends and innovations. His commitment to keeping the industry informed is a testament to his role as a visionary leader in the world of technology.