In this article, I am going to tell you How to build SaaS software? so if you want to know about it, then keep reading this article. Because I am going to give you complete information about it, so let’s start.
SaaS software has become a great and renowned software delivery model. Its demand has shown a steep rise in recent years and the number of SaaS users has boosted too. The market cap of SaaS is anticipated to reach 307.3 billion by 2026. This would usually be driven by the growth of digitalization and the bending of people towards SaaS products and private cloud services.
SaaS has become popular among users because of its cost-effective price, flexible pricing model, and personalization and automated services.
The article entails and will provide you with a greater insight into of some the most significant SaaS app examples. Besides this, you’ll be provided with thorough steps on How to build SaaS software.
Before we dive into the steps of building SaaS software, let’s first understand the fundamentals and what makes SaaS different from conventional software models.
Today’s article focuses on the same,i.e, “How to build SaaS software“. The articles entail each bit of information necessary for you to know.
Let’s get started!
Table of Contents
What is SaaS software?
Software as a service has been an idea since the 1960s, but the first SaaS applications didn’t arrive until the turn of the century.
The term “software as a service,” or SaaS, refers to utilizing a piece of software on a monthly, quarterly, or yearly basis rather than purchasing a license. But the distinction between SaaS and conventional apps goes much beyond price. A SaaS application is one that you may access through a web browser or your mobile device without having to install it on your computer.
This simply implies that for accessing SaaS software from anywhere in the globe, all you need is an internet connection. It also signifies that customers may utilize an app even while developers are always working on updates from a development perspective.
As SaaS products/services are cloud-based, SaaS programs are so accessible. SaaS is a subset of cloud computing and many SaaS software are designed and deployed there only. However, the point to remember is that not every SaaS model is built in the cloud, some are built on local terminals too and then deployed to a cloud-based server.
Benefits of SaaS Software?
Seems like SaaS is overpowering conventional software, but why? The benefits of SaaS apps for enterprises and organizations are listed below.
1. No setup required
Using a conventional app built on local terminals requires setting up a system for functioning. Additionally, the infrastructure of your business should be capable of supporting the use of a specific model of software. Furthermore, you need to add more network, processing, and storage resources if workloads increase.
In contrast, SaaS apps are less resource-intensive and don’t need to be configured or set up.
2. Adaptive scaling
Cloud infrastructure may expand as needed to support more users. SaaS software that is cloud-based may readily grow to meet your company’s demands. Even though cloud prices will rise, you won’t need to make expensive infrastructure improvements. This adds well to the cost-effective part of SaaS.
3. Easy payment model
An enterprise software license is required for conventional software requires which is a pricey activity that often comes under the capital expenditures (CAPEX) category.
A SaaS platform’s monthly costs are an operational expense (OPEX) that won’t put a significant financial strain on your business. You are free to decide when to stop using the app, just you have to stop paying the monthly costs.
4. Global Accessibility
SaaS software functions in a cloud environment, so you are no longer restricted to your workplace PC. You’re free to access anytime, from any device, anywhere. There will always be a place for the work-from-home approach, and SaaS apps can be conveniently accessed wherever you need them. Unlike traditional applications which have only one workstation, SaaS software can be accessed through several devices.
5. Quick upgrades
Traditional software upgrades often involve purchasing and installing an upgrade package. Constant innovation and development are one advantage of SaaS. Additionally, all of the most current application changes are instantly accessible to clients.
6. Simple to use
It’s much simpler to test a SaaS program before purchasing compared to conventional software. Before you pay and get a subscription, SaaS products let you explore all of its features and functionalities in 3D.
7. Security
Security concerns are always given extra attention during the development of SaaS software. The reason behind this is, that the SaaS platform is shared by a number of tenants, and user data privacy is a top priority. SaaS programs need to be protected against illegal use and cyberattacks, hence multiple factor authentication becomes a need.
Marketing spaces, sales CRM, and other business software might be useful to companies that employ software as a service application. This is true since SaaS programs’ significant, i.e., cloud-based functionality enables you to access these services without having to download software on your devices.
8. Business size
SaaS programs are flexible toward enterprise sizes. Any consumer or organization regardless of size or industry specialty is free to use SaaS software/program. You may have across software like G Suite, and Dropbox; they don’t cater to any one market and everyone may use them.
9. Statistical analysis
Every firm must evaluate its operations and performance to determine what can be done better and what needs particular attention. SaaS software collects pertinent data and analyses it to provide you with the same.
Types of SaaS software with examples
SaaS software has many different uses and may be broken down into a number of different subcategories.
The most prevalent SaaS software examples are listed below 👇
1. CRM software
Businesses can estimate sales, handle leads and marketing campaigns, get analytics and dashboards on sales activity, automate marketing initiatives, and more with the aid of SaaS solutions for building and customer relationship management.
Some of the most notable SaaS CRM software include Salesforce and Hubspot.
2. Project management software
SaaS software has already established itself as the industry standard or first priority for project and workflow management software.
Cloud-based project management tools like Asana, Jira, and Trello can be accessed from anywhere and are excellent tools in the age of remote work. They can be powered up even more with add-ons like Issue Templates for Jira.
3. eCommerce Software
Numerous businesses are shifting to online stores, this simply boosts the growth of SaaS software for managing online retailers.
For example, Shopify has connectors for payment systems, huge chain management, and everything else needed to design and run an e-commerce website.
4. ERP software
ERP software is also readily accessible via SaaS. It stands for enterprise-grade resource planning software. Complex data analytics tools are included in modern cloud-based ERP systems, which assist businesses in processing enormous volumes of data.
ML and AI are used by SaaS systems like Oracle ERP Cloud to give enterprises a complete picture of their operations.
5. SaaS-based collaboration tools
Remote work is getting popularized and often freelancers and other individuals prefer it. For this many organizations all over the world are using SaaS technologies for remote collaboration.
For instance, Miro is a tool that helps distributed and remote teams organize effective communication, share files and documents, arrange and conduct video conversations, and do much more. You must have used Zoom which has assisted teams in maintaining contact and helped in learning too.
6. Marketing Software
Software as a service (SaaS) has established itself in the marketing sector. There are now a large number of well-liked SaaS software that assist marketers in evaluating and enhancing their promotional strategies.
For instance, Hootsuite does that precise function. It is a SaaS product that offers a wide variety of features for managing publications and communication on Facebook, Twitter, Instagram, and other well-known platforms.
7. HRM software
A variety of duties relating to workers fall within the control of human resources departments. Specific SaaS tools make it easier to collect data on potential workers, manage job postings, track and evaluate employee engagement and performance, and handle pay processes.
BambooHR stands out among SaaS models for HR administration as a comprehensive platform that provides aid with hiring, onboarding, remuneration, and business culture.
8. Vertical SaaS software
Vertical SaaS apps are specialized and aid market participants in a particular sector or market segment in streamlining, optimizing, and increasing the efficiency of their operations.
For instance, Procore, is a project management tool for the construction sector that is packed with capabilities for efficient communication, cooperation, exchanging plans and project specifications, and many more.
These lucrative types and notable examples would definitely help you if you’re looking for SaaS software development. Let’s dive into the steps to build SaaS apps via Scratch.
How to build SaaS software from Scratch?
SaaS app development is getting widely popularized, already thousands of SaaS mobile apps are launched on app stores. The below-listed steps will help you to make your own SaaS software and be in pace with the growing competition.
1. Market and competitor analysis
The creation of SaaS apps increasingly depends on cutting-edge technology like AI, machine learning, and other innovative technologies. Analyzing the most recent tech trends in-depth can help you kick off the product discovery process.
Learn about the trends in your target niche if you want to construct vertical SaaS software. As you develop your SaaS app concept, look for the utmost of your target niche, their wants, and their top priorities.
The ideation stage includes a critical component called competitor analysis. Study the already available applications in your market, identify your main rivals, and ascertain their weaknesses so that you may better serve the demands of your clients.
2. Select the most suitable app monetization model
You must make your SaaS app monetization decision before you completely commit to the app development process. Your app’s design and functionality will ultimately be determined by your revenue model, therefore you should have it properly planned out before you begin developing your app. Knowing your target market can help you determine how much money your app’s users can spend on it.
The most effective models of SaaS apps are listed below:
Your app can be downloaded for free using the Freemium business model, but only paid users can access the premium features. The majority of cloud storage providers, like OneDrive or Dropbox, only provide a set amount of space for free before charging you to increase your storage capacity. So, you can offer your users the same way with different ideologies.
Digital marketplaces are able to monetize their services through transaction and selling fees. Your app’s users pay you a commission each time they generate revenue using it. Any money transfer also comes with a minor transaction charge. This strategy is used by online markets for freelancers like Fiverr, and Freelance to make money.
Additionally, one of the most popular revenue strategies for SaaS programs is in-app advertising. By watching advertisements, users gain free access to app services, while application owners are compensated for ad clicks and views. For instance, health or workout apps may push users to buy or provide users with guidance on purchasing certain types of whey proteins.
The Subscription model might be ideal if you’re creating a highly specialized app. Your users will be given the option to purchase a monthly, quarterly, or yearly membership following a brief trial period. This business strategy will be most effective for generating income if users actually discover that your software offers a specific commercial benefit. Of Course, you generate income through user data collected.
3. Security and Reliability
Even while adopting SaaS for companies may seem advantageous, there are dependability and security concerns involved with this business model. SaaS programs operate in the cloud, which makes them fundamentally different from traditional apps. As a result, you must select a trustworthy cloud hosting provider.
AWS recommended that most reputable cloud service companies try their utmost to protect the data of their customers. They go above and beyond to guarantee the accuracy of the data kept in their data centers and make use of the greatest security procedures.
Multi-tenancy is another typical problem while using cloud services. There are some requirements placed on the SaaS app development when numerous users access the same app. In any event, make sure the data is secured and backed up, and that you use the best system architecture for your particular sort of SaaS service.
4. Integration with other applications
SaaS apps should smoothly connect with other organizational tools and applications since they are specifically designed for usage in business contexts.
Furthermore, it should offer open application programming interfaces (APIs) that enable third-party developers to quickly get access to the software code and modify it to combine it with other programs. When selecting an open API design, pay close attention to assure dependability and security because a similar impact will be on your SaaS application too, if anything goes wrong with API.
5. Choose a technology stack
For building perfect and robust SaaS apps, the best technology for the application frontend and backend, storage database, and application server must be chosen. Below listed points will help you in the same.
The size of the project, the state of technology, and linkages with other applications are the three main factors to consider while selecting the tech stack.
6. Build an MVP
MVP backronym minimum viable product is basically a trial version of your SaaS software with the most essential functionalities. An MVP serves as a proof-of-concept and provides stakeholders and users with a glimpse and advancement of your project.
The MVP is also created with a little budget, allowing you to assess how well your product is received by the market without incurring significant costs. Additionally, at this stage of the product development lifecycle, you have the option of changing your development strategy or technology stack.
7. Start with the development
To guarantee that you and the development team have the same understanding of the features and needs for the product, be in close contact throughout the development process and look for each and every update made. Use an agile methodology for quick time-to-value, continuous testing, and development.
Furthermore, it’s better to start a marketing effort early in order to develop a base of devoted users who are eagerly awaiting the launch of your SaaS apps. This will boost your productivity in advance.
8. Beta Testing, Launching, and Management
A program cannot be deemed prepared for publishing and deployment until the QA team has finished beta testing and examined the production server. You will be able to gauge the market’s reaction to your app through user-acceptance testing, which involves testing it with early adopters/users which may include some of your team members too.
By building SaaS software, you agree to keep it updated and maintained continuously. All app updates and round-the-clock technical help should be easily accessible to users who have downloaded and installed your app on their devices.
Hope you have read about How to build SaaS software above, and now if you want to know about What is SaaS, then you must watch the above video.
Conclusion:)
SaaS programs differ from conventional software in a number of important ways, including cheaper subscription costs, improved accessibility and availability, round-the-clock technical assistance, and many more.
However, creating SaaS software is not an easy process. In addition to picking a trustworthy cloud provider and deciding on the best app design and technology stack, finding qualified IT personnel at a reasonable price may be extremely difficult. It takes a lot of time to get an experienced team, expert development, and IT team for building robust SaaS software.
Read also:)
- 5+ Best SaaS Marketing Agencies to Grow Your SaaS Business!
- What is SaaS Security: A-to-Z Guide for Beginners!
- Things To Know About SaaS Application Testing: Full Guide for Beginners!
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