SaaS App Development 101: Mastering SaaS Software Development

SaaS app development is a smart strategy for growing your business. Whether you’re upgrading an existing solution or building from scratch, understanding the specifics of SaaS is crucial. Knowing best practices and potential challenges is also essential for success.

This guide will help you navigate SaaS development and outsourcing. It will ensure a smooth development process while supporting your business growth.

What is SaaS Product Development

Before we dig in, let’s clarify exactly what Software as a Service (SaaS) means. Basically, SaaS app development serves as a cloud-based service accessible via the internet, that provides easy deployment, enhances the scalability of a software product, and has no special hardware requirements for users. 

Unlike traditional software applications, which need to be installed on your device, SaaS applications are accessed through web browsers, on any device connected to the internet, via a username and password, or a one-time generated code. There are multiple benefits of choosing SaaS over traditional applications, but numbers can tell:

• Microsoft’s Azure registered cloud services revenue growth of over 20% in 2023.
• Amazon Web Services boasts over 1 million users.
• Salesforce experienced a 23.15% year-over-year (YoY) revenue increase in 2023.

Creating a SaaS application involves several key stages: brainstorming and design, followed by development, and finally, deployment and maintenance. While it may seem straightforward, we’ll break down each step in detail. The goal is to build a product that meets your business and user needs, performs well, remains secure, and scales as required.

SaaS Product Development Lifecycle

What’s a SDLC (Software Development Lifecycle)? Well, this structure represents the stages through which a SaaS application is built – from the original idea and concept to the deployment of the app. These stages include: planning, designing, developing, testing, and deploying the app, with the last step being continuous maintenance and updates to improve the product.

Our version of a SDLC is a bit simpler – less steps, more efficiency. We start by mapping out the project in order to capture the essence of the project (the users, the business sector, and the app requirements). We simply sketch the goals, timelines, and vision of the project, all while keeping in touch with you at every break-through to make sure our ideas and concepts are properly aligned.

After the mapping phase, we start crafting a Sprint Plan, collaborating with you as our Product Owner. We start by examining the product backlog and identifying goals for the upcoming sprint. This sets the stage for our daily scrum sessions and focused development efforts. At the end of each sprint, we conduct a thorough review with you in order to make informed decisions on how updates will proceed with testing and deployment.

The release stage is definitely a crucial aspect of software development – and we take it seriously. We thoroughly test the app for accessibility, speed, version control issues, and adherence to security requirements.
We support you in the application release stage through our dedicated teams (maintenance, security & DevOps), which make sure everything is working accordingly. 

Now, this may technically be the last stage, but we like to see it as a continuous process throughout our collaboration. The refining phase encapsulates all the ongoing iteration and refinement of products in order to obtain their maximum potential throughout their use. Basically, you’ve got an idea of an upgrade based on the data retrieved from users? Let’s see how we can implement that.

SaaS Development Frameworks

Using the right development framework is crucial for the success of a SaaS product. Here are some popular frameworks:

React

React is like a starter kit for web interfaces, made by Facebook. It lets you create reusable UI (User-Interface) components, making your life easier when building single-page applications.

Vue.js

Vue.js is a flexible JavaScript framework that’s also great for building user interfaces. What Vue.js does is give you the opportunity to start small and gradually add more complex features as your app evolves.

Angular

Angular, backed by Google, is a powerful framework for creating dynamic web apps. It’s all about building modular and organized applications, with features like two-way data binding and a handy CLI to streamline your workflow.

Laravel

Laravel is a PHP framework that’s widely used for web development. It follows the MVC pattern and comes with built-in features like routing and authentication. 

Django

Django is a high-level Python framework that helps you build web applications quickly and easily. It includes everything you need from the start, so you can focus on building your app without worrying about the basics.

SaaS Application Development Best Practices

1. Focus on the UX

The user experience is a pretty big deal when you’re planning to develop a SaaS application, it’s what drives people to use your platform. The interface and the application flows should all be intuitive and easy to navigate through, so keep in mind the following:

• Focus on having a responsive design;
• Build a clear navigation experience, with clear menus and consistent layouts.
• Make sure you’re offering a smooth onboarding experience, filled with tutorials and explanations for every action.

2. Choose the right architecture for your application

Choosing the right architecture for your SaaS application is like picking the perfect foundation for your dream house.

You want it to be solid, flexible, and ready to support whatever you plan to build on top of it. When you’re designing your SaaS architecture, think about scalability—can it handle a sudden spike in users without crashing?

For instance, microservices architecture is great for breaking your app into manageable pieces that can be independently scaled and updated.

Serverless architecture, like AWS Lambda, is another option that lets you run code without provisioning servers, making scaling seamless.

3. Make sure you’re compliant

Keep in mind: you need to protect your users’ data like it’s your own. Use strong encryption, multi-factor authentication, and regular security audits to keep things tight.

Being compliant keeps you out of trouble and builds trust among your users. Make sure you’re up-to-date with regulations like GDPR or HIPAA if you’re dealing with sensitive data. 

4. Scalability

Designing with scalability in mind saves you a lot of headaches. Sure, it may include some additional costs, but you’ll get your SaaS application to expand smoothly as your user base grows.

Plus, investing in scalable SaaS web development can keep your software performing like a champ, no matter how big you get. 

5. Third-Party Integrations

When you’re diving into SaaS app development, integrating third-party services can be a game-changer. What are third-parties?

Well, basically, they’re a bunch of already existing tools and services that enhance your app’s functionality. Whether we’re talking about payment gateways, CRM systems, or analytics tools, these integrations can save you loads of time and money.

In custom SaaS development, leveraging these ready-made solutions can significantly cut down on development costs and speed up the release date.

Plus, it allows your team to focus on what they do best—crafting the core features that make your SaaS application unique. And let’s not forget, integrating these services can also elevate the user experience, making your SaaS app a top-notch contender in the market.

So, while you’re calculating SaaS development costs, take a look at some third-party integrations you might not know you need yet.

SaaS Development Costs

The cost of developing a SaaS platform can vary widely based on a lot of factors (e.g., the complexity of features, the integrations needed, the size of the dev team, whether you opt for nearshore SaaS development or not).

On average, a basic SaaS MVP (Minimum Viable Product) can set you back anywhere from $50,000 to $100,000.

But if you’re aiming for a more complex and unique application, you might be looking at a bill upwards of $250,000. It’s essential to budget for these expenses early on and consider capitalizing on SaaS development costs to spread them out over time.

What we recommend is investing in a scalable infrastructure from the get-go. Sure, it might feel like a hefty initial cost, but you’ll get that money back as your user base grows.

Custom SaaS development allows you to tailor your app precisely to your business needs, but it also means higher upfront costs.

Balancing between off-the-shelf solutions and custom builds can help you manage your budget effectively. And don’t forget the ongoing costs like maintenance, updates, and customer support.

These can add another 20-30% to your annual budget, so it’s important to keep those in mind when planning your SaaS application development journey.

SaaS vs. Custom Development

As you may know, there are several key differentiators between choosing to build a software as a service application and a custom developed solution.

To figure out what’s the best option for you, you need to see which method better suits your business model, needs, and costs.

Advantages and disadvantages of SaaS development

As with any other method, you should be aware that SaaS application development has its ups and downs.

Check out the most common benefits and disadvantages of building your SaaS platform:

Why SaaS is the future

Given the rapid pace of the software industry, it’s clear that Software as a Service is evolving quickly. We can confidently say that SaaS is the future of application development.

The ability to constantly improve, update, and implement new technologies is a huge advantage. Plus, doing so without disrupting the platform’s foundation makes it well worth trying.

Developing a SaaS platform is highly cost-effective. Its accessibility from any device and rapid release cycles further make SaaS a flexible and future-proof solution. This drives its adoption and shapes the future of software deployment for businesses of all sizes.

How to choose your SaaS development partner

Picking the perfect partner for your SaaS app development can make all the difference. Our advice is to first look for someone with a solid track record in SaaS software development.

Check out their website, dive into their case studies, client reviews, and portfolio. These will help you decide whether or not you would consider working with a specific team.

But it’s not all just about having technical knowledge. SaaS development demands a dedicated team with diverse skills. Look for partners with a well-structured team—think project managers, designers, developers, architects, QA engineers, and more. This will ensure you’ll get qualitative services, as every single member is specialised in their area.

Now, let’s talk methodology. Agile and DevOps are the way to go for efficient software delivery without compromising on your SaaS application quality or your budget. Partners who use these kinds of methodologies can streamline processes and adapt quickly to any changes. It’s all about being efficient.

Don’t forget to ask the right questions.  Clarify who will own the source code; you want to make sure you have some clear agreements in place. And, of course, discuss the post-deployment support they offer. A successful SaaS application needs continuous support, so ensure your partner is ready to provide the technical support you’ll need after launch.

Lastly, consider starting with a Minimum Viable Product (MVP). It’s a great way to validate your SaaS concept before diving into full-scale development. This approach can save you time and money and help you tailor your product based on real user feedback. 

Discover how we transformed business analysis and discovery for DTangle, unlocking new insights and efficiencies

Nearshore SaaS Development

If you want to outsource your SaaS app development team, we highly recommend looking for partners in Eastern Europe.

Take Romania, for instance; it’s fast becoming a hotspot for SaaS software development. Why? Well, you get a fantastic blend of top-notch technical skills, cost efficiency, and cultural compatibility.

This means you can develop a SaaS application with high quality without breaking the bank. Plus, the time zone overlap with Western Europe makes collaboration smooth and efficient.

So, if you’re looking to cut down on SaaS development costs while still capitalising on top talent, nearshore SaaS development in Romania is definitely worth considering. 

Check out more about the benefits of outsourcing in Romania.

FAQs about SaaS Development

Q: What are the common challenges in SaaS app development? 

A: SaaS development presents common challenges like ensuring scalability and performance. Managing data security is another key concern. Additionally, integrating with third-party services and maintaining zero downtime are critical factors to address. Designing the application with a robust architecture is essential to handle growth. Additionally, implementing stringent security measures is crucial to protecting user data.

Q: What are the key features to include in a SaaS application? 

A: Key features of a SaaS application typically include user management, data security, reporting and analytics, integrations with other software, scalability options, and regular updates. It’s also important to have robust customer support features and a user-friendly interface.

Q: How does SaaS handle data security and privacy?

A: SaaS providers implement various security measures to protect data, such as encryption, regular security audits, and compliance with data protection regulations like GDPR. 

Q: What is the typical timeline for developing a SaaS application?

A: The timeline for developing a SaaS application varies based on its complexity and features. Developing a basic MVP typically takes about 3 to 6 months. In contrast, building a fully-featured application may take 12 months or longer. 

Q: How can businesses benefit from SaaS?

A: Businesses can benefit from SaaS through cost savings, scalability, ease of use, and flexibility. SaaS eliminates the need for large upfront investments in hardware and software. It also provides automatic updates and maintenance. Additionally, it allows users to access applications from anywhere with an internet connection.