How to Build a SaaS Application in 2024?

A novel model known as Software as a Service (SaaS) is gradually supplanting the more conventional method of purchasing software licenses. That is why the approach of delivering Software as a service has been so successful over the past decade.

A study found that the SaaS business model market reported for US $31.57 billion in 2015 and is projected to mature at a CAGR of around 18.6 percent during this forecasted period to reach US $172.20 billion in 2025.

The many advantages it provides are quickly contributing to its rising popularity. Development of Software as a service application may be the ideal choice for your company if you are brainstorming software ideas.

This comprehensive book teaches the ins and outs of building a successful software as a service (SaaS) application and how to convert your current app to a SaaS model.

What is SaaS development?

So, what is SaaS development all about? SaaS development involves crafting “Software as a Service” technology and business models. The process includes developing and distributing software applications using subscription-based online platforms.

The cloud hosting model of Software as a Service (SaaS) applications makes them accessible from any site with an online connection, in disparity to more conventional Software.

Organizations of all sizes can benefit from SaaS-based product development’s scalability and affordability since it streamlines software deployment, maintenance, and updates.

Significant Benefits of SaaS Development

Here are some of the most recent advantages that make developing SaaS apps and SaaS product development a good business and technology idea in 2024.

1) Flexibility in development

You may adapt your system to meet evolving needs with SaaS applications. It can take months for a developer to release an update for conventional Software. Because SaaS application development occurs in the cloud, it becomes much easier to make changes. Similarly, you can build such a system without spending money on supplementary hardware. Conversely, consumers can evaluate it from any location with an Internet link.

2) Developer-user win-win pricing

You may start small and scale up as your business expands because most SaaS providers offer a wide range of price options. The primary objective is to determine a fair price for a particular market while precisely customising the subscriber plan’s feature set to meet the target audience’s needs.

3) Consistent revenue

Users can subscribe monthly or annually, making it easier to forecast sales and profits with Software as a service for external consumption.

Moreover, performance bottlenecks caused by sluggish response times or delays when obtaining data from remote servers are common in traditional software development. However, because all of the processing for SaaS apps occurs on a single server, users and the system experience zero latency in their interactions.

4) Scalability 

SaaS solutions are present in cloud settings that are highly scalable with added SaaS services. Matched with the conventional model, you don’t have to purchase another software or server to support the existing one. You just require a new SaaS offering, and the SaaS provider will own the server capacity planning. Also, you can scale your SaaS usage up and down based on precise requirements.

5) Time-saving

SaaS diverges from the conventional model as the application is already explicitly configured. You can set the server in the cloud and have the application for use quickly. This scenario saves the overall time spent on configuration and can lessen the challenges that get in the way of app deployment.

6) Accessibility

Given their digital usage, SaaS solutions can be easily accessed from anywhere globally. With SaaS, the user base can access their data sets and work efficiently from anywhere, simplifying the scenario for professionals worldwide.

How Does a SaaS Model Differ from a Web Application Development Model?

While every SaaS product is a web app, only some people use the SaaS model. Here is the comparison spreadsheet for your review:

SaaS Application:

• Software-as-a-service apps are those that operate on the cloud.

• Users do not need to invest in infrastructure when using a SaaS service.

• Any computer with an internet connection or a dedicated software application can use SaaS.

• The backend’s multi-tenancy is one aspect that enables the pool of expenses and resources.

• Conforming to NIST standards, the SaaS application offers limitless scalability.

Web Application:

• Servers host web applications.

• All it takes to access an app is a web browser. Websites built using WordPress and hosted on a shared server with specific functionality modifications also fall under the umbrella of web apps.

• Scalability and availability are web services’ biggest challenges, including scheduling systems.

• A single tenant makes up its backend.

How to Build SaaS Products?

Here, let us discuss the SaaS development process and how to build a SaaS step by step.

Step 1: Know exactly what you want

Knowing your end goal(s) before building a SaaS app is critical. You could find a solution to this problem by doing some preliminary study. You can always consult with seasoned developers if you need advice on what kind of solution to make for your company. Below are a few simple SaaS examples of typical inquiries:

• Please tell me the specifications of your programme.

• Is the Software as a service model the ideal fit for your business?

• To what extent do you envision a SaaS software resolving your needs?

You can refine the concept of your SaaS app by responding to these questions and listening to the suggestions of your current clients.

Step 2: Locate seasoned programmers

After you prepare your needs, the following stage is to locate competent and skilled developers. Choosing a reputed software development firm or developers is vital for SaaS app development because of the required technical skills. 

Take programmers with experience in Software as a service (SaaS) apps as an example. This intricate process of action would be well familiar to them. They are also better able to handle mistakes.

Step 3: Make sure the idea for the SaaS app Is Valid

The developers will confirm your proposal after they have finalised it. The ability to turn a brilliant concept into a workable plan is an entirely different matter. Developers would carry out feasibility studies to ascertain if the idea is suitable for development into a product or programme.

Step 4: Create a User Interface (UI) and User Experience (UX) Design

The full stack developers will inform the design team once they have validated the app idea. Superior user interface and experience designs that are simple to use and navigate would be the product of the design team’s labour. In addition to understanding the app’s process through prototype development, they would finalise the SaaS application’s colour schemes.

Step 5: Create a Minimum Viable Product

Making a Minimal Viable Product (MVP) out of the SaaS app is the following logical step. You may use it to determine the level of interest from the audience, and it offers all the essential features. Additionally, it would enable you to establish a foundation of audience members from which you can expand.

Step 6: Promote and assess results

To progress inside the ecosystem of SaaS applications, marketing is paramount. You need to plan your marketing tactics, identify the most effective channels to promote your SaaS application, and then measure the return on investment (ROI).

Best Tech Stack to Develop a SaaS Product

Here is the best SaaS technology stack to develop a SaaS software product:

1) Framework:

More and more banking and SaaS businesses are turning to React’s popular library for front-end development. The React library is a set of classes in JavaScript that allow developers to build dynamic user interfaces. 

The modular design of the framework is its defining characteristic. Applications become quicker and more efficient as a result of this.

2) JavaScript:

JavaScript, the best stack for SaaS startups, enhances interactivity in an app or website. JavaScript Developers may make sitemaps, pop-ups, contact forms, and more with its help. It adds allure and intrigue to user involvement.

3) Programming Languages:

Every computer language has a specific purpose. As an example, Python is a widely used programming language with an easy-to-learn syntax and a straightforward way to code. Consequently, it shortens the time it takes to create Software and websites. 

But PHP development is great for a SaaS company because it is popular and easy to learn and can enhance the back end of its website. C++, a cross-platform language, allows developers to build high-performance apps by combining all C characteristics with those of other languages, making it ideal for creating massive online apps and video games.

4) Database:

A database is a curated repository for structured information like files, records, and data. The usual place for their storage is in a computer system. Prevalent databases are MySQL, MongoDB, and PostgreSQL.

5) APIs:

APIs connect servers and clients by acting as intermediaries. They aim to facilitate data movement and other resources from the server to the database.

These SaaS Development Services, such as data storage and event brokers, are crucial to your back end. Because of this, picking the right equipment for the job is vital.

SaaS Development Cost and Timeline:

How much does it cost to build a unique SaaS product? Successful Software as service (SaaS) solutions are a good source of ideas as we have all used them. What was the initial investment? Use the data in the table below to get a rough idea of your SAAS development cost estimate in diverse locations.

Please check the present market value of leading SaaS applications for these expenses. Many SaaS products have become industry standards in their respective fields. What follows approximates what it might have cost to create the apps. It takes a long time and a lot of investment to get the brand to its current status and to build it up to the iconic levels they have attained.

And that is not all! How long does it take to build a SaaS product? Keep in mind that there is no fixed budget and timeline. The three primary determinants of total cost and development time are the experience levels of the development team, the decided feature set, and overall project complexity.

Now, the next question is, what is the project team structure of a SaaS application development company? The standard project team structure will comprise a professional development team, creative UI/UX designers, a database administrator, a project management team, a security team, an operations team, a technical support team, and sales & marketing teams. 

Leading SaaS Development Examples

So, what is an example of a SaaS? Let us explore some successful SaaS applications and what goes into building a SaaS product. 

1. Google Application

Google has truly improved people’s lives and businesses’ operations across many industries with its wide range of software-as-a-service (SaaS) solutions.

Google currently offers a varied suite of products known as G Suite, which includes the omnipresent Gmail, Docs, Sheets, and Drive applications.

G Suite provides a comprehensive ecosystem to individuals, small businesses, and enterprises, with its product line covering all bases. Its compatibility with Android and availability on all smartphones set it apart from the rest.

• Launch Year – 2006 (initial release)
• Average Revenue – $4.99 billion 

2. Zoom

Popular video communication platform Zoom offers online meetings, webinars, and video conferencing. Its high-quality video and audio enable real-time communication.

Another key feature is its simple interface, which lets users start and attend meetings with a few clicks. Zoom offers screen sharing, recording, and real-time chat for virtual collaboration.

Zoom is popular among corporations, schools, and other organizations to interact with remote teams and partners due to its scalability and security.

• Launch Year – 2011 (initial release)

• Average Revenue – $1.06 billion 

3. Salesforce

This cloud-based CRM system centralises lead and prospect management to boost sales. This American company has been around for a decade, and its huge user base and client base make it a model of the kind of Software as a service (SaaS) program that many small and medium-sized businesses look to for a profitable ROI due to its excellent sales methods – a great CRM and sales force management tool.

• Launch Year – 1999 (initial release)

• Average Revenue – $26.45 billion

Key Takeaways

So, the Software as a Service (SaaS) model showcases an innovative and progressive business approach. With SaaS, you can expand your audience reach, speed up app launches, and simplify business processes. By eliminating the need to manage software updates and maintenance, Software as a Service (SaaS) lets you concentrate on running your business. 

The reason behind the near-tripling of SaaS development agencies in the past few years is this very reason. They provide a steady stream of income for software developers. 

This paves the way for better customer interactions, more frequent upgrades, shorter release cycles, and less time spent on maintenance. Therefore, it is reasonable to claim that the SaaS model benefits everyone. 

At iCoderz, we, as a SaaS development company, enable businesses with professionally created SaaS software solutions. We provide full-cycle software development services comprising SaaS products, web and mobile applications, and advancing legacy software. Our technology and business-oriented approach assists us in providing unique SaaS solutions and building effective digital products that excel in our client’s performance levels.