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SaaS Development Platforms: The Top 5 Costs to Consider

July 31, 2022

If you’re looking to create a SaaS development platform, there are several costs you need to consider. Here’s a rundown of the top 5 costs of developing a SaaS platform.

I remember when I first started my journey into software development. I had no idea what it would cost to develop a SaaS platform. I quickly realized that many factors went into calculating the total development cost. In this blog post, I’ll share with you the top 5 costs associated with developing a SaaS platform to better prepare you for your project.

What’s a SaaS Platform?

A SaaS platform is a business model that allows a company to provide its software to customers over the Internet.

SaaS development platforms allow companies to offer their products without users needing to download any software locally. This is a big advantage for users, as they can access the service or product from any device with an internet connection.

So why choose software as a service (SaaS) for your service? Because there are significant benefits for your end-user: a SaaS platform allows your end-users to access your product or service regardless of their device.

And they are cost-effective and easy to implement.

SaaS application development platforms offer several advantages for both service providers and customers. SaaS apps are typically more cost-effective and scalable than traditional software applications for service providers.

Additionally, service providers are responsible for monitoring, maintaining, and securing the SaaS platform, which gives customers peace of mind knowing that their product is reliable and up-to-date.

But, putting the end-user aside for a moment, why are these apps good for your SaaS business? Moving to a software-as-a-service model could be beneficial if you’re already offering this service.

So, where do you even start with SaaS development? As experienced SaaS software developers, we’re here to answer that right here and now.

Let’s get into it.

SaaS Application Development

Building SaaS apps generally involves following these steps:

Engineering

Building your software from the ground up is no small task. It’s going to require a team of skilled developers, designers, and marketers who are all focused on their specialties.

Design

So how do you design a SaaS web application? Answer: Before you start building your cloud application, it is important to take the time to design the solution. This will help ensure that your software is stable and free of unnecessary or faulty features. When designing a SaaS web application, there are a few key things to keep in mind:

The different phases of designing your Saas include multiple cycles of creating documents, like the user stories and the software architecture document.

But let’s talk about the aspects of a hosted solution, starting with its architectural setup. You can choose between a single- or multi-tenancy model.

The single-tenant architecture gives you the option to have your dedicated tech resources. This is better for bigger clients who may consume all of your server’s capacity.

The Multi-Tenant Architecture is a great feature that allows multiple people to access the same data without interfering. This can be achieved in two ways: by using separate accounts for each user or by using a shared account that all users have access to.

The Multi-Tenant Architecture allows you to have multiple people access the same data through different user accounts. This is achieved by having a single application that hosts multiple individual instances of the database.

The benefits of this technique are that it’s easy to implement but lacks scalability. The alternative approach is to have several applications, each hosting a sample of the data. This approach is more difficult and expensive but provides a better customer experience.

Next, it’s time to choose what technology your software will be built upon. There are many factors to consider, such as how flexible it is, how scalable it is, how much it will cost, and how quickly it can be built.

Partitioning 

Partitioning your data makes it easier to manage each part of your data independently. This can help simplify your operations, improve performance, and scale your infrastructure.

Partitioning your database lets you separate each data set, making it easier to manage.

There are different ways to divide up your contacts into groups, each having its benefits and drawbacks.

Deployment

Software Deployment is akin to opening the doors to your shop. You want to ensure everything is set up so users can easily locate and use your software and any accompanying support.

Updates need to be rolled out automatically to keep your CRM updated and working properly. Like a factory assembly line, your CRM system needs to roll out changes as soon as they become available.

The automated deployment process is much faster and more flexible than the traditional method of releasing updates. With this approach, you can deploy small changes as they are ready instead of waiting for a large update. This makes it possible to keep your system up-to-date without putting everything on hold.

Testing

SaaS software testing is a critical process that helps ensure the software meets your requirements and those of your users. By incorporating both manual and automated testing approaches, you can completely cover the software and identify any potential bugs before release.

It’s a good idea to mix both manual and automatic tests in your QA processes. That way, you’ll get more comprehensive coverage.

Beta testing your software and conducting a cloud security audit are both great ways to ensure that your software is as secure as possible.

Managing and Monitoring

A development team functions best when its members focus on coding and testing. A manager can provide guidance and oversight to ensure the process runs smoothly. A manager can help a development team reach its full potential by delegating tasks and keeping track of progress.

Senior managers are in the best position to determine which employees should be assigned which tasks and who are not ready for more responsibility.

This person will keep you updated on the software development process.

Optimizing 

After you’ve scaled your software-as-a-service (SaaS) solution to your desired capacity, be sure to optimize your system. This will save you money, improve the user experience, increase your availability, and make your processes run more efficiently.

To ensure your SaaS software runs smoothly, you’ll need to identify how many servers and databases you’ll need to support your user base.

The key is having the right resources to provide a good customer experience but not too many that you end up spending too much money on employees and hardware.

Transitioning From On-premise to Cloud Computing

If you’re running a SaaS development environment on-premises, you’ll have to move it. Depending on how much data you have, the type of machine you’re running on, and how long of a window you have for downtime, you have a few options: physical-to-Virtual (P2V), Physical-to-Cloud (P2C), Virtual-to-Virtual (V2V), and Virtual-to-Cloud (VC2).

SaaS Development Platforms: The Costs

SaaS application development costs will vary depending on the complexity of your product, its feature set, the technologies you decide to use, and any integration your app will have with third-party services.

You have to choose wisely where to hire your remote development team. This will determine the quality of the final SaaS product and the price.

The cost of SaaS development will depend on which country you partner with for your software development. For instance, if you partner with a company from the United States or Canada, you can expect to pay between $150 and $250 per hour. However, if you partner with an application development company from Asia or South America, the cost may be only $15 to $70 per hour.

Outsourcing in Western Europe is more expensive than in Eastern Europe, with rates between $65 and $100 per hour.

Web app development from Eastern Europe is significantly cheaper than in the US. If you outsource to countries like Russia, Belarus, or Bulgaria, you can get quality developers for $45 to $70 an hour.

A simple SaaS MVP will cost you $45,000+ to build with a company in Eastern Europe.

A web application developed by a company in this region will cost over $100,000, which is cheaper than it would be if the same company was based in the US.

Conclusion

SaaS development platforms offer many benefits, but you also need to consider several costs. In this blog post, we’ve discussed the steps of developing a SaaS platform and the associated costs. Keep these in mind as you plan your project to better estimate the total cost of development.

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