How to Build a SaaS Application?

Software-as-a-Service (SaaS) applications have become a game-changer in the software industry, projected to become an $800 billion industry by 2027. By providing unmatched versatility, SaaS applications have made their mark across various industries such as finance, healthcare, marketing, and retail. With this skyrocketing trend, organizations are racing to build their own cloud-based SaaS applications. This guide aims to demystify the process of building a SaaS application while emphasizing the immense value it brings to your organization.

An Overview of Building a SaaS Application

SaaS app development is a hot topic in the IT industry because of its rising usage. The following is a detailed process of creating a cloud-based SaaS application. Remember that this is a generic process and should be customized per the project requirements.

Step 1: Market and Trend Analysis

Before commencing the development, it is crucial to understand the market, target audience, and competitors. Start by identifying the current trends that are leading the SaaS industry. The trends can be new technologies, including machine learning or artificial intelligence, low-code/no-code development, API-first development, and edge computing. Furthermore, it would be best to analyze the potential target audience and competition in-depth. Learn about various actions your competitors perform to retain users and identify the gap you can fill with your SaaS application.

Step 2: Security Planning

As legions of users will use the cloud-based SaaS application, they are often targets of cyber attackers. Facing reliability issues and security risks are more common than most people think. One of the best ways to better security is to pick a reliable cloud vendor. Such providers implement several security layers and best practices to protect client data.

Some of the most prominent cloud vendors are Amazon Web Services, Google Cloud Platform, and Microsoft Azure. By picking a reliable provider, you not only improve security but minimize reliability issues as well.

However, it's important to remember that they don't absolve you of your security responsibilities. As a developer, performing security actions like thorough threat assessments, implementing strong authentication and authorization mechanisms, encrypting data at rest and in transit, and monitoring user activity and logs for suspicious behavior can help further enhance the security of your SaaS application.

Step 3: Shortlist Technology Stack

Building a cloud-based SaaS application requires specific technologies for various areas, including frontend, backend storage, and database. Picking the optimal technology is the key to effective SaaS app building.

• The most common languages used for the server side of SaaS apps are JavaScript, Ruby, PHP, and Python.
• Most SaaS apps use CSS and HTML for the front end of the app.
• For backend storage, MySQL and PostgreSQL are among the most preferred names.

Step 4: Minimum Viable Product (MVP)

An MVP is a basic version of your SaaS app with limited features, provided to the stakeholders and users to let them feel what the app will provide them. MVP may also be considered a proof-of-concept and gain the parties' confidence regarding the app development and release.

It also helps evaluate the user's app acceptance, allowing the developer to make the necessary changes to the development approach without spending hefty expenses.

Step 5: Refined Development

Following the valuable lessons learned from MVP, this stage focuses on meticulously crafting your full-fledged SaaS application. The developers will incorporate user feedback, focus on functionalities that resonate with users, and address identified pain points. Implementing agile methodology is a common practice in building SaaS applications due to its iterative approach. This approach helps in continuous testing and development and reduces delivery time. Make sure to put all those technologies to good use during the development process.

Step 6: Testing

Before releasing the application to the users, it should undergo rigorous testing to identify and eradicate bugs. Even though testing is part of the entire development process, specific tests should be performed on the SaaS app. Beta testing is among the most effective tests where the app is released for people who use it and provide feedback to the developers. Developers can use this feedback to fix any underlying issue and stabilize it before the final release.

Step 7: Release and Maintenance

 The final stage in building a cloud-based SaaS application is releasing it to the target audience. After testing and fixing all the issues, the SaaS app becomes ready for deployment. Depending on your monetization model, the users can access the app. However, the work does not end after deployment.

Maintaining the app and releasing frequent updates should also be in your pipeline. The SaaS app should be upgraded with new features every once in a while to provide something new to the users. Also, continuous technical support should be offered to fix any issues the users may face.

Bringing Value with Different Types of SaaS Applications

SaaS applications come in several types, and elaborating on all of them is not possible in a single article. However, here you will learn about some of the most popular SaaS types organizations are implementing.

1. ERP: ERP or Enterprise Resource Planning apps help manage everyday business tasks for better work efficiency. SaaS apps like NetSuite, SAP Business One, and Zoho One are as popular as ERP due to their features and feasibility. 
2. CRM: Customer Relationship Management apps allow organizations to track and manage user data. Companies can accumulate business information through these SaaS apps, automate sales, or communicate with users. Salesforce, HubSpot CRM, and Pipedrive are among the top SaaS CRM names in the industry that help foster stronger customer relationships.
3. Human Resource Management: Several SaaS apps are made specifically for human resource management. Such cloud-based apps can perform staff-related actions like managing job offers, performance tracking, gathering information, and many others. Popular options include Workday, Zoho People, and BambooHR, offering user-friendly interfaces and robust functionalities to simplify HR processes.
4. Project Management: Managing complex projects efficiently has become significantly easier with the widespread adoption of SaaS apps. Tools like Trello, Asana, and Jira offer intuitive interfaces, seamless team collaboration capabilities, and real-time progress tracking. These features make project management more manageable and uncomplicated.

Factors to Consider During SaaS App Development

Developing a cloud-based SaaS application is not highly complicated when done correctly. However, certain factors should be considered while developing a SaaS application. These factors will ensure that your SaaS app functions as intended.

1. Tenancy Model: Single-tenant and multi-tenant are the two tenancy models in a cloud-based SaaS app. In single-tenant architecture, the software, resources, and database are used by a single tenant, whereas multiple tenants will share the same in multi-tenancy architecture. The suitable model depends on the app's requirements.
2. Monetization: Generating revenue is essential for maintaining and releasing new features for SaaS apps. Multiple monetisation models include freemium, subscription, tiered pricing, and pay-as-you-go. Monetization strategy is among the most crucial factors as it will help shape the application's future.
3. Development Team: No matter how influential the SaaS app idea is, the app will not leave the desired impact if the development team is not proficient in their job. For a development team, you can either have an in-house team or outsource the development process. Both have pros and cons, but the most preferred method currently is outsourcing the process to a SaaS app development company.

The Benefits of Outsourcing Cloud-Based SaaS Application Development

One of the hottest trends in SaaS app development is outsourcing the process. Here, you will learn how to leverage the benefits of this development team.

1. Talented Personnel: Outsourcing companies always have the best talent in the industry as they are dedicated to providing development services. Whether it is development, testing, or UI designing, you will surely get the best talent.
2. Budget-Friendly and Time-Saving: Rather than bearing the long-term cost of having an in-house team, you can hire a development team that will work as per your requirements, saving a lot of unwanted expenses. Being highly proficient at their work, the team can also minimize delivery time.
3. Flexibility: Whether you want service for a specific or long-term project, you can get it all by outsourcing SaaS development.
4. Minimizing Risk: The SaaS application development process comes with specific risks. Outsourcing companies are aware of most of the risks, so they can minimize them for their clients. Cutting it short, you will have better protection from development risks.

Factors that Influence the Cost of SaaS Application Development Outsourcing

An estimate of the overall expense of developing a SaaS application helps manage the budget. Here are the key factors to consider when budgeting your SaaS app development project.

1. Complexity: One of the most significant contributors to the rising cost of SaaS application outsourcing is its complexity. The more complex the application development is, the higher it will cost. The direct reason is that complex apps tend to consume a high number of hours as compared to simple ones.
2. Location: SaaS application development service costs are higher in countries like the US and UK, whereas the same service can be affordable in Asian countries like India and China. Many European and American organizations prefer offshore software development to minimize the cost.
3. Service Required: Some companies only want development or testing services, whereas others may need support services. Every service cost differs, and the final cost may vary with the services you want. End-to-end development will surely increase the cost as compared to just testing service.

Conclusion

In today's digital era, transitioning to a cloud-based SaaS application isn't just following a trend—it's making a critical, strategic leap towards ensuring your organization stands out by offering unparalleled user experiences. By embracing the guidance we've shared and leveraging the unparalleled expertise of our outsourced development team, you're not just creating a SaaS application; you're architecting a secure, efficient, and value-driven solution that propels your business forward.

Why Choose ThinkSys for Your SaaS Journey?

ThinkSys isn't just another name in the realm of SaaS application development; we're your partners in innovation and success. With over a decade of dedicated service in software development, ThinkSys has evolved into a beacon of excellence, deeply understanding and expertly fulfilling your unique business needs. Our journey is marked by a relentless pursuit of excellence, a deep understanding of evolving market dynamics, and a commitment to delivering solutions that not only meet but exceed client expectations.