SaaS Application Development [Benefits]

Last updated on October 16th, 2024

According to research by Gartner, spending by users on Software as a Service (SaaS) is experiencing significant growth each year, clearly outpacing other “as a service” models. Recent estimates suggest an increase in spending by tens of billions annually, rising from $121 billion in 2020 to $145 billion in 2021. Looking ahead, Gartner anticipates user spending on SaaS will reach $171 billion by the end of 2022, representing an 18 percent increase over the previous year. This article outlines the comprehensive process involved in custom SaaS app development, integrating theoretical concepts with our extensive technical experience and case studies we have undertaken, along with practical insights on outsourcing SaaS development and expert recommendations.

What is a SaaS solution and how does it differ from traditional licensed software?

A SaaS solution is an application delivery model that enables users to access cloud-based applications via the internet and a web browser, eliminating the need for local software installation on their devices. Unlike traditional licensed software, where users must purchase a license and install the program locally, SaaS applications require no specific server hardware or dedicated devices. This model allows customers to easily access fully functional software from any device while all processing and storage requirements are managed in the cloud, streamlining the user experience and reducing the burden of management and maintenance.

Advantages of SaaS

The advantages of this software distribution model encompass various facets related to the development, upkeep, enhancement, and delivery of a solution. This includes streamlined processes for building applications, simplified maintenance procedures, seamless upgrades, and efficient provisioning, all of which contribute to a more effective user experience and operational efficiency.

Financial Advantages

Predictable Revenue Stream: The subscription model ensures a steady and predictable flow of revenue for the business. As new features are introduced, subscription prices may rise, further boosting overall income.
Reduced Unit Costs Through Growth: As the provider’s business expands and the customer base increases, they can transition to bulk pricing. This reduces unit costs while simultaneously enhancing overall profit margins.

Hardware and setup advantages

Easy, cost-effective, and dependable maintenance is a significant benefit of the SaaS model. Providers avoid the expenses associated with purchasing and maintaining hardware, as these costs are covered indirectly through subscriptions to cloud computing platforms. This strategy ensures enhanced hardware reliability, as many cloud service providers utilize servers distributed globally. By leveraging a content delivery network (CDN), customers can experience optimal performance regardless of their geographical location.

Instantaneous Delivery: Unlike traditional licensed software, which often requires users to endure lengthy waits for updates, SaaS provides rapid and automatic updates to all users simultaneously.
Streamlined Time to Launch: Providers eliminate the need to adapt to the customer’s hardware, allowing users to begin accessing the application immediately upon starting a subscription.

Development and enhancement advantages

Scalability: The SaaS delivery model enables providers to effectively manage the entire platform from a centralized location, regardless of where clients or end users are situated. This setup allows them to support numerous users and efficiently manage traffic with minimal effort.
Flexibility: SaaS solutions are highly adaptable, allowing providers to swiftly respond to market trends and audience needs. This proactive approach facilitates the rapid implementation of new features, making SaaS a compelling alternative to traditional licensed software.
Security: Built on robust cloud computing platforms, SaaS applications offer exceptional security for all aspects of the service, including the platform, cloud network, applications, operating systems, and physical infrastructure. The primary responsibility for securing customer data rests with the company utilizing the service.
Configuration and Integrations: Cloud-based services enable tailored configurations and seamless integration with various third-party providers, enhancing the user experience and functionality of the software.
Business Intelligence: Web-based applications empower analysts to perform comprehensive analyses of user demand and behavior, informing strategic decisions for future software enhancements and infrastructure adjustments. Insights gained during post-release evaluations assist marketers and technical teams in crafting personalized offers, managing server capacity, and optimizing business models.

Increased customer satisfaction and loyalty

Flexible Monetization Model: SaaS applications allow users to choose payment intervals such as monthly, quarterly, or annually, rather than requiring a full upfront payment.
Customizable Service Packages: Customers have the option to select the functionalities they need, paying only for the services they use.
Budget Flexibility and Billing Review: Clients can opt for a subscription plan that meets their requirements, easily adjust their features, and modify their plans at any time by reviewing their usage.
Increased Lifetime Value: Regular updates to the software provide clients with essential tools for their operations, enabling them to achieve business objectives and enhance their workflows.
Customer Support and Care: SaaS offers numerous benefits to enhance customer satisfaction, including real-time human support, discounts, special offers, and options for white labeling and personalization of the software.
Trial Period: Companies often provide limited-time free or discounted trials, allowing potential users to explore the application’s features before committing.
Availability on Multiple Devices: SaaS applications can be accessed from any internet-connected device, which is particularly important in the context of increased remote work due to COVID-19.

Determining if your company is ready for SaaS application development

Whether your company is small, medium-sized, or part of a larger enterprise, considering SaaS solutions is viable as long as you align with your business goals, budget, and customer needs. The B2B sector is particularly well-suited for embracing SaaS models, as they enable providers to offer a single platform that can be tailored to address the unique requirements of various clients across different industries, as well as cater to their end users.

Before embarking on the development of a SaaS product, ensure your company possesses the necessary expertise. Creating SaaS applications demands substantial time and a proficient team capable of effectively planning, designing, developing, and deploying the new solution.

In-House Team: Employing a permanent in-house team offers convenience for ongoing solution development and enhancements. However, it requires regular salary payments, even during periods of inactivity in app creation.
Freelancers: Hiring freelancers on a short-term basis is ideal for developing SaaS applications that won’t receive frequent updates or enhancements following initial releases. Keep in mind that if you decide to continue development later, assembling a new team will be necessary, leading to additional time spent for them to reacquaint themselves with the app.
Outsourcing Software Company: Partnering with an outsourcing company for software development is often the most effective choice. Such companies, like iTechnolabs, specialize in providing SaaS application development and consulting services. The benefit of this approach is the ability to quickly assemble a tailored team of experts. You’ll pay a flat fee, and if further work is required on your project, the outsourcing provider will already have comprehensive documentation of your project’s details.

The composition of a SaaS product development team can differ based on the specific needs of each project, yet there are essential roles that are universally required. A typical team includes DevOps specialists, backend and frontend developers, quality assurance experts, UI/UX designers, solution architects, and project managers to oversee the development process. Having explored the business aspects, we will now shift our focus to the SaaS product development journey. In the upcoming sections, we will draw upon iTechnolabs’ expertise in creating software-as-a-service applications to outline this process from the viewpoint of an outsourcing company.

A stage by stage guide to SaaS product development

If you’re looking to develop a SaaS application, it’s important to recognise that the process can be both time-intensive and complex. It involves extensive preparatory work, ongoing maintenance after development, and a diverse team of professionals. To gain a clear understanding of what this journey involves, we will examine the lifecycle of SaaS development.

Stage 1: Roadmapping

Roadmapping is a critical phase in the creation of a SaaS application, encompassing thorough research, strategic planning, and finalisation of the app concept. While it’s essential to anticipate unforeseen changes—such as the need to implement specific features on short notice, adjustments to the budget or timeline, or shifts in cloud providers—iTechnolabs’ experts work closely with clients to establish and solidify the primary development direction during this stage. This collaborative approach ensures that both parties are aligned on the vision and goals of the project before moving forward.

Research and Analysis

The initial step involves a thorough examination and assessment of your requirements, company, and product aspirations. Business analysts conduct a detailed exploration of the industry landscape, scrutinising competitors and target audiences to uncover business opportunities. They strategically devise methods for attracting and retaining customers, as well as pinpointing avenues for scaling the application. In this context, our experts outline the concept for a Minimum Viable Product (MVP), which includes essential elements such as the design theme, monetization strategy with advanced billing options, user stories accompanied by style guides, mockups, and a functional prototype. This approach aims to resolve the challenges faced by end users and effectively address their specific needs.

Strategic planning

In the strategic planning phase, the lead developer provides rough timelines for the development of solutions, helping clients visualise the incremental enhancements their product will undergo. It’s crucial for clients to understand when each update will be implemented. This stage also involves evaluating the most appropriate cloud service providers, such as AWS, Google Cloud, and Azure, as well as forming partnerships and communicating upcoming features to end users. This communication is vital, as it underscores the application’s potential to clients and highlights our own expertise. For businesses targeting the B2B segment, it’s especially beneficial to incorporate user feedback on feature requests during this phase, ensuring that future implementations are accurately aligned with user needs.

Communication with clients

When engaging with clients, we strive to provide them with a comprehensive overview of the SaaS application development process. Our team delivers detailed presentations that outline the software development trajectory, supplemented by our recommendations. Recognising that clients often lack precise expectations or may struggle to articulate their app vision, we facilitate this understanding. A business analyst can illustrate potential business scenarios and workflows, visualise prospective revenue streams, showcase the advantages of partnering with certain services or cloud providers, and underscore the long-term benefits that clients can expect from their application.

iTechnolabs best practices at the roadmapping stage

At this stage, it is crucial for our dedicated team at iTechnolabs to adhere to a comprehensive set of best practices to guarantee the success of the SaaS application development process. This entails conducting thorough market research to deeply understand user needs and preferences, which will help us tailor the application to solve real problems effectively. Additionally, we will implement agile methodologies that promote flexibility and adaptability, allowing us to respond swiftly to feedback and changing requirements throughout the development cycle.

Furthermore, ensuring robust testing procedures is vital, as this will enable us to identify and resolve issues early on, thus minimizing risks and enhancing the overall quality of the application. By focusing on these key areas—market research, agile methodologies, and rigorous testing—we can create a high-quality application that not only meets industry standards but also delivers exceptional value to our users, fostering long-term satisfaction and loyalty. Ultimately, our commitment to excellence will position us as leaders in the SaaS market, paving the way for innovative solutions that truly resonate with our audience.

Stage 2: SaaS solution architecture design

Our solution architects are highly experienced in designing SaaS products with scalability, reliability, and security in mind. Through detailed planning and close collaboration with our clients’ stakeholders, we create a robust architecture that accommodates the needs of both end-users and administrators while meeting industry standards.

iTechnolabs’ best practices for building a high-quality solution architecture

At iTechnolabs, we follow industry best practices and leverage our extensive expertise to deliver high-quality and robust solution architectures for our clients. Our process includes:

Multi-Tenant Architecture

Implementing a multi-tenant architecture is crucial for creating a scalable software-as-a-service (SaaS) application. This approach enables the platform to efficiently support a large number of customers by utilizing a single database that houses the information for multiple clients. By sharing the same underlying infrastructure while keeping each tenant’s data secure and isolated, a multi-tenant architecture not only optimizes resource utilization but also simplifies maintenance and updates, ultimately enhancing the overall user experience.

Data Security

Developing a multi-tenant application necessitates a strong focus on data security. Since the architecture relies on shared databases, the risks associated with potential data loss during server failures or unauthorized data exposure increase significantly. To safeguard end-user data, iTechnolabs employs a variety of data protection strategies, including data loss prevention practices, encryption for both data and files, and malware protection techniques during the development of SaaS products.

We strongly recommend that clients implement multi-factor authentication and establish mechanisms for role and permission management to control access effectively. In addition to standard security features such as HTTPS/SSL, cloud databases, encrypted file storage, tenant separation, data backups, and differentiated access levels for various user roles, we tailor our security measures to align with the specific requirements of the client’s business, industry, and geographical location.

Architecturally Significant Requirements (ASR)

To ensure architectural stability, we focus on the following key aspects:

Performance Requirements: Assessing the architecture’s performance metrics to guarantee that it can handle anticipated workloads efficiently.
Load Factor: Evaluating the expected load factors to optimize resource allocation and system responsiveness.
Predicted Growth: Planning for future scalability needs to accommodate an increasing number of users and data volume.

Default Third-Party Integrations

Instead of offering on-demand personalized integrations, we recommend establishing a list of default third-party integrations that benefit all customers, including:

Payment processing solutions
Audit tracking systems
Customer relationship management tools
Analytics and reporting services

SLA (Service-Level Agreement)

To manage the inevitability of downtime, our clients and their end users require assurances regarding platform stability. Our SLAs outline our commitment to swiftly restoring server stability in the event of issues by guaranteeing:

Timely incident response and resolution
Network uptime percentages
Regular maintenance schedules
Clear communication during outages or issues

Stage 3: SaaS Software Development

The development phase of our SaaS platform is where our strategic plans begin to materialise. This stage requires close collaboration between solution architects and developers. At the design stage, the development team selects a suitable technology stack, including frameworks and programming languages, by evaluating the specific industry and regional aspects of the client’s business.

This careful selection process is crucial for building a robust security framework and ensuring adherence to relevant security standards. Technical experts must recognise the weight of their technological choices; while it is possible to develop an application in various programming languages, practical considerations dictate otherwise. An inappropriate selection of technology can hinder the scalability of SaaS solutions and impede overall progress.

Requirements iTechnolabs always complies with:

We prioritise compliance with relevant laws and regulations in the jurisdictions where our clients’ solutions operate. Failing to adhere to these compliance requirements risks significant financial repercussions for the client.
If a selected technology cannot meet local compliance needs, we may encounter scenarios where fundamental changes are unavoidable, potentially necessitating a complete rewrite and re-evaluation of the technology stack.
In assessing potential technology stacks, we thoroughly evaluate their capabilities to support extensive scalability. Opting for an inadequate or subpar technology can result in frequent database sharding and increased demands for computing resources.
Scaling infrastructure effectively often requires additional financial investment, and may ultimately lead specialists to develop and implement migration strategies.

Stage 4: Testing and Optimization

SaaS testing is an integral component of the entire development lifecycle, addressing aspects such as code functionality, the performance of individual product components, and the seamless integration of diverse elements. During the final testing phase, our quality assurance engineers evaluate the application for performance consistency, availability, security, interoperability, and the efficiency of business workflows; this thorough examination helps identify any defects and facilitates a bottleneck analysis. Once vulnerabilities have been addressed, the platform undergoes further testing. Given the complexity and scale of SaaS solutions, manual testing alone is insufficient. Therefore, we implement automated testing strategies to mitigate human error in the architecture design process. Once all evaluations are complete, the solution is prepared for deployment into production.

Stage 5: Deployment of the MVP version and metering

As soon as the platform goes live and reaches a broader audience, we begin monitoring its performance stability while collecting data on feature utilization, server operations, and database performance. Following the collection of feedback regarding the MVP’s functionality and optimization of its performance, the team will shift focus to developing subsequent versions of the service, making adjustments to features informed by business intelligence analysis results.

Outsourcing SaaS development with iTechnolabs

At iTechnolabs, we offer a comprehensive range of services to support businesses at different stages of their SaaS journey. From ideation and MVP development to testing and optimization, our team is equipped with the skills and expertise necessary to deliver an exceptional product. Our agile approach allows for flexibility in adapting to evolving requirements and ensures that the final solution meets business objectives while maintaining high quality standards. With our extensive experience in SaaS development, we are confident in providing cost-effective solutions tailored to each client’s unique needs.

As technology continues to advance, it is crucial for businesses to leverage software as a service for improved scalability, cost-efficiency, and overall growth. By partnering with iTechnolabs, organizations can efficiently outsource the development of their SaaS solution and focus on their core competencies. With our dedicated team and proven processes, we are committed to delivering innovative and high-quality products that drive success for our clients. Let us help you turn your SaaS idea into a reality and take your business to new heights. So, if you’re ready to embark on your SaaS journey, contact us today! Our team is eager to discuss how we can support your unique needs and goals.

Important: A Comprehensive Guide to SaaS Products

Conclusion:

In conclusion, outsourcing SaaS development with iTechnolabs offers businesses the opportunity to access top-tier expertise and cutting-edge technology without significant investments in infrastructure or personnel. With our proven track record, agile approach, and commitment to client satisfaction, we are confident in providing tailored solutions that drive growth and success. Let us help you bring your SaaS solution to life and stay ahead of the competition. Contact us today to learn more about our services and how we can support your business goals. So, make the smart choice for your SaaS development needs and choose iTechnolabs as your trusted partner.

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