How to Develop a SaaS Application in 2022: The Ultimate Guide

SaaS app definition

Benefits of Software-as-a-Service

  • Flexibility and cost-effectiveness
  • Scalability
  • Quick setup
  • Updates
  • Security

Types of SaaS apps

  • SaaS apps for project management
  • ERP
  • CRM
  • E-commerce
  • Billing

Difference between software as a product (SaaP) and software as a service (SaaS)

Notable statistics

  1. The number of SaaS apps organizations use is rising: in 2017, there were approximately 16 SaaS apps per corporation. In 2021, there were approximately 110 SaaS apps in use per corporation.
  2. Statista predicts the total size of the cloud Software as a Service worldwide market to reach $166.8 B by 2024.
  3. Compound Annual Growth Rate (CAGR is the metric that is most commonly used by investors to indicate the potential of a business or industry.) is 16.3% currently ( Cloud Computing Market by Service, Deployment Model, Organization Size, Vertical And Region — Global Forecast to 2026)
  4. The 2020 Global Technology Leadership Study conducted by Deloitte states that 70% of CIOs are attracted to cloud-based SaaS for its agility and scalability; 38% of companies adopt cloud-based systems to enhance disaster recovery; 37% of companies value flexibility.
  5. The 2022 State of IT report says that 12% of a business’s SaaS budget is for operating systems; 10% of a business’s SaaS budget is for security software, and 10% of a business’s SaaS budget is for productivity.
  6. We can hardly name an industry that hasn’t been affected by COVID-19. It also changed the way we work, which resulted in a boom of remote working. And this is nearly impossible without collaboration and communication apps, such as Atlassian, Jira, Trello, or Slack.
  7. Blissfully reports that IT Security, Customer support, and HR departments are more reliant on SaaS than other ones.

6 must-have features of a successful SaaS app

  • Scalability — the product you’re building must be able to scale vertically as well as horizontally and adapt to your clients’ growing business needs.
  • Flexibility — this means the possibility to add new features to the product rapidly to meet new requirements.
  • Data security — data is one of the most valuable business’ assets and you, as a software provider, must ensure it’s going to be safe and secure.
  • Customization — the app must give subscribers the possibility to configure various options and adapt them to specific needs.
  • Documentation — make sure to provide your users with comprehensive and simple guides, tutorials, and manuals.
  • Easy integration — it means that your software must be easy to integrate with third-party plugins and tools and ensure smooth interaction.

Tech Stack

  • Python as the main programming language
  • JavaScript as the main language for frontend
  • MongoDB for database
  • Google Cloud or Amazon Web Services for cloud computing
  • RabbitMQ as a queuing system

How to create a SaaS application step by step

1. Find the idea

2. Validate the idea

3. Choose technology stack

4. Hire a team

  • Business analyst: To study the market, find the pain points, and generate ideas that will become popular painkillers
  • Backend developer
  • Frontend developer
  • UX/UI designer: To turn the code into an interface that’s convenient, efficient, and enjoyable
  • QA engineer
  • Project manager: To orchestrate and deliver in a timely manner

5. Build an MVP

6. Test

7. Post-launch maintenance

How much does it cost to build a SaaS platform?

  • 100 hours on UX/UI design
  • 800 hours on the back end
  • 1700 hours on iOS and Android development
  • USD 140,000 for Eastern Europe
  • USD 270,000 for the USA
  • USD 245,000 for Western Europe
  • USD 275,000 for Australia
  • USD 170,000 for Asia

Strategies for SaaS app monetization

  • Freemium
  • Feature-based pricing
  • Usage-based pricing
  • User-based pricing
  • Flare rate pricing

Software-as-a-Service app development trends for 2022

1. Artificial Intelligence

2. Mobile-first development

3. Even enhanced security

4. Micro SaaS

Conclusion

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A team of engineers writing about web & mobile applications, here’s how we think (https://yellow.systems/blog) and live (www.instagram.com/yellow.systems/)

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A team of engineers writing about web & mobile applications, here’s how we think (https://yellow.systems/blog) and live (www.instagram.com/yellow.systems/)