How to Make a SaaS Product and Cost Assessment?

The market for software as a service, or SaaS, is expanding quickly. It is projected to expand from 18% to 18.7% annually by 2030, when it would reach $908 billion. 

The amount is enormous and still growing. As a result, it's drawing in big businesses to use SaaS development services and introduce fantastic SaaS goods to the market. As a result, in 2022, there will be about 17,000 Software as a Service (SaaS) businesses in the US.

This article will teach you about the SAAS market perspectives, potential benefits for your business, and the associated costs of implementing such a solution.

What is a SaaS Product?

Software as a Service, or SaaS, is a business model in which software programmes are hosted online as opposed to on internal servers of an enterprise. To access a SaaS software product via a web browser or a dedicated application, users usually have to pay a recurring subscription fee. 

Recent statistics provide a strong representation of the SaaS solutions assessing popularity. It is projected that SaaS apps would generate close to $253,90 billion in revenue by the end of 2023 and $344 billion by 2027, a further increase in recognition.

It also makes software updates easier, freeing up developers to work on enhancements without interfering with users. This guarantees that software will continue to function and that there will be no income loss while updates are being made.

Benefits of developing SaaS

• Regular income: Because SaaS products are based on subscriptions, they provide a consistent source of revenue. Businesses now find it simpler to invest in expansion and develop long-term plans.

• Minimal upfront costs: SaaS development removes the requirement for significant expenditures on software and hardware infrastructure. Customers can accept SaaS solutions more easily as a result, and entry barriers are lowered.

• Expandable on customer demand: Software as a service, or SaaS, can readily grow to meet the needs of an expanding user base without demanding large infrastructure investments. This is especially advantageous for newly established and growing companies.

• Reaching a global clientele: SaaS software can be used from any location with internet connectivity. This makes it possible for companies to reach a wider market.

• Upgrades automatically: SaaS companies notify all users of upgrades and enhancements. This reduces the need for manual updates by guaranteeing that your product always has the most recent features, security updates, and bug fixes.

• Security: Regular security updates and centrally managed servers for SaaS products lower the likelihood of hacking and piracy. Subscription-based access also deters illegal copying because it prevents use of the product.

• Automated Upgrades: Creating a SaaS application is a viable choice if you wish to develop fully functional software with no maintenance required. SaaS software's IT architecture ensures that bug patches and updates are automatically applied on a regular basis, keeping the platform secure and up to date without requiring manual intervention.

Key players in the SaaS market

The following three major firms in the industry market provide a variety of SaaS solutions:

• Google. The corporation provides a plethora of software as a service (SaaS) offerings, such as Gmail, Google Docs, Google Drive, Google Sheets, Google Ads, and more. In 2022, their income amounted to $279.8 billion.

• Adobe: One of the best known instances of a software as a service (SaaS) solution that is deeply ingrained in the daily lives of most people is Adobe. Adobe Creative Cloud is one of their products (Photoshop, illustrator, etc.)

• Slack: In terms of size and service quality, the programme surpassed rivals and seems to be a reliable tool for teamwork and communication. In order to minimise the necessity for local installation, the user can access the service through a browser or a dedicated app.

These data-controlled figures will assist you in understanding the potential of the SaaS market and the benefits of developing a SaaS product.

SaaS Application Types

Examine the primary software-as-a-service (SaaS) product categories available to gain insight into how to develop a SaaS offering that appeals to your target market.

• Software for managing customer relationships, or CRM for short. These SaaS solutions for companies aid in enhancing marketing tactics and fostering client relationships. A well-known example is Hubspot.

• SaaS-based content management systems (CMS) provide publishing and content management features. One well-known example of a CMS SaaS is WordPress.com.

• ERP software, or enterprise resource planning. Large companies use these sophisticated solutions to handle a variety of company operations, including supply chain management, sales, manufacturing, commerce, reporting, and human resources. SAP Business One, Microsoft Dynamics 365, and Oracle Netsuite are some of the most well-known examples.

• Software for managing projects. Examples of tools that help companies manage workflow and collaborate with team members in a shared workspace are Jira and Trello, which handle project tracking, resource allocation, and job assignment.

• Vertical SaaS instruments. These are solutions designed for a certain sector of the economy. As an alternative, they could be made to maximise particular business procedures. We should also bring up Guidewire for insurance, Veeva for pharmaceutical management, and BioIQ for MedTech.

• Software solutions for e-commerce. These tools are necessary for online merchants to handle inventory, shipping, taxes, and merchandise. Shopify and BigCommerce are the two most widely used e-commerce software packages.

• Tools for SaaS marketing. These tools support businesses in carrying out their marketing plans and initiatives as well as monitoring their overall business performance. 

How to build a SaaS Product

Now that we have covered the theory, let's put it into practice and learn how to create a SaaS product. We've chosen to break down the development process into a few sections to provide you an overview of SaaS product building in an effort to streamline the process.

If you want to make sure that the cloud-based solution you develop will fulfil actual demands and have a market, you must validate your idea. By doing this, you can save time and money by making an item that no one will purchase.

• Examine the market. To determine the market for comparable items and to find out who your rivals are, obtain an industry analysis. Examine your results to find out about the most recent developments in SaaS development and to pinpoint any market gaps or needs that your SaaS solution can fill.

• Determine who the intended audience is : Identify the exact target market for your product and describe their wants, preferences, and problem areas. To find out if the issue your product is meant to address is a genuine pain point, conduct surveys and interviews.

• Analyse the products that are currently on the market and determine their advantages and disadvantages. You may use this to better identify your unique value proposition (UVP) and plan how to develop a SaaS product that will disrupt your particular industry.

Make a roadmap for your products

It will offer you pointers on how to develop your SaaS product so that it is in line with your goals and the demands of your users.

• Set Milestones: Establish benchmarks for the development of SaaS applications, such as the date of the Minimum Viable Product's (MVP) and later releases' release. Establish your general goals for the SaaS application first.

• Determine the important stages. Idea generation, MVP creation, beta testing, feature improvements, scalability boosts, and continuous maintenance are usually included in these.

• Establish deadlines for every accomplishment. Think about things like the intricacy of the tasks, the availability of resources, and the interdependence among milestones.

• Draw a timeline and important milestones on the road map template. Spreadsheets, Gantt charts, and specialised roadmap software are all options.

• Think beyond the minimum viable product. Describe the versions and releases that came after the MVP. Indicate which improvements and functionalities will be added.

Create your SaaS Product

The following steps are typically used to divide up the SaaS development process:

• Your development partner can learn more about your project and company during the discovery session.

• Using clickable prototypes and wireframes to visualise your product is a key component of UX/UI design.

• Writing an application's real code is known as development. Although your SaaS development team may choose a different strategy, Agile is strongly advised for new projects or projects with a significant degree of unpredictability.

• For every product feature to function as intended and for the system to be free of errors and bugs, quality assurance is required.

• The solution is made available to search engines and actual customers who are looking for your services through deployment and launch procedures.

The cost of developing a SaaS service

A number of variables, such as the size of the project, the technology stack selected, and the fees of the specialists engaged, can significantly affect the cost of developing a SaaS application. 

The essential steps to think about are listed below:

• Make a development roadmap and specify the project's parameters.

• Determine the approximate number of resources required for SaaS development, such as the cost of SaaS infrastructure, ownership or licensing of the tech stack, and the employment and upkeep of a team.

• By dividing the project roadmap into discrete tasks and calculating the amount of time needed to complete each job, you may estimate the amount of time needed for development.

• Set aside money for marketing and advertising in order to introduce and advance your goods.

• Calculate the cost of continuing operations, including server upkeep, customer service, software upgrades, and user acquisition.

• Compute the overall expense of developing a SaaS application by adding together all of the projected expenditures from the earlier phases.

• Add together all of the projected expenses from the earlier phases to determine the overall cost of developing a SaaS application.

Conclusion

We hope that this advice helps you find the most cost-effective and efficient way to develop a SaaS solution. Here is a rundown of the main ideas. When it comes to software, the SaaS model has many benefits over traditional software. This entails consistent revenue streams, minimal start-up expenses, scalability, worldwide coverage, automated upgrades, and strong security. It indicates that we are capable of creating a SaaS solution that satisfies the most exacting business needs. Please use our contact form if you have any inquiries concerning custom software engineering or SaaS development.