Globally, 71% of the companies have at least one SaaS subscription, which means worldwide spending by companies of 343 billion dollars a year.
In recent times, these types of applications have represented a growing market, due to their high consumption, ease of use and implementation, and the high turnover of applications that we use in our daily lives. For these reasons, everything seems to indicate that this trend will continue to be very profitable for a long period of time.
- What is SaaS?
- The difference between SaaS, PaaS and IaaS
- Why launch a SaaS application?
- How to build a SaaS app
What is SaaS?
SaaS stands for Software as a Service. This means that all the software is run and updated over the internet.
It is a cloud-based service, where you access an application through a web browser instead of downloading the software to your computer from your desktop.
As we have already discussed, SaaS platforms make software available to users on the internet. With SaaS, nothing needs to be installed. Everything is available after logging in with a user account, so as long as you have the internet, you can access the information from any device.
It offers scalable services, so it is useful for small businesses or international companies.
Examples of SaaS apps
Within SaaS applications, we have some examples of SaaS platforms that have become very popular:
- Dropbox: offers file storage solutions that are synchronised across all your devices and act as a cloud-based hard drive.
- Slack: business communication platform with a wide range of functions (private messaging, group forums, various file-sharing options, etc.) All its operation is backed by data encryption to ensure privacy and security.
- SalesForce: cloud-based customer relationship management platform that aims to drive sales for organisations by managing all leads in a single environment.
The difference between SaaS, PaaS and IaaS
In addition to SaaS, there are other cloud service models, the so-called PaaS and IaaS.
IaaS (Infrastructure as a Service)
IaaS companies offer services such as storage, networking and virtualisation on a pay-per-use basis. IaaS offers users cloud-based alternatives to on-premises infrastructure, thereby saving companies from cost overruns on local resources.
It also offers scalable, flexible and affordable solutions for users.
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PaaS (platform as a service)
PaaS platforms provide hardware and software tools on the internet and people use these tools to develop applications. Consumers of this PaaS model are typically developers looking to create unique and customisable software.
With PaaS, developers do not need to start from scratch when creating applications, which saves them a lot of time and money when developing a new app.
Why launch a SaaS application?
SaaS applications are the leading cloud service. Thanks to their ease of use, scalable solutions and affordable cost, they offer a wide range of possibilities for all types of companies.
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In addition, the subscription models they offer provide businesses with the software solutions they need at an affordable cost.
Benefits for your company
- Reduce cost overruns: No need to maintain or buy expensive hardware. You only pay for the services you need.
- Scalability: if a company starts to need more resources, it simply upgrades its plan and can enjoy more options instantly.
- Reliability: The cloud is a network of servers spread across the globe, so if one server goes down, the rest make up for it and the application will continue to work.
- Security: Cloud providers pay close attention to security to ensure that your data is stored in a safe place.
How to build a SaaS app
In order to create a SaaS application, the steps to follow must be well planned: the design, the architecture of the app or the services to be provided must be well defined, but other factors must also be taken into account.
An important element is the pricing strategy. For example, within SaaS software, it is common to offer some utilities for free to attract users so that they can try out our app and then monetise the rest of the more advanced features.
It is also crucial to carry out market and competitor research to validate the idea and to find out if there are users willing to subscribe to our SaaS services.
This initial decision making also involves aspects of the SaaS itself, such as which tools or platforms to use, as well as the desired functionalities, e.g. role-based access to set different permissions within the team, analytics dashboard, single sign-on or audit logging.
This whole process can be overwhelming, so our recommendation is to start small, especially when it comes to complexity and therefore financial investment.
Selecting the right (external) services
Once we have a clear idea of what the app will look like, it’s time to look for the right external services.
One of the key factors will be to choose a reliable cloud service provider that can host your SaaS platform. Ideally, select a host that is inexpensive, but with the ability to scale as the platform grows, for example, Amazon Web Services (AWS) is a popular provider with multiple tools for SaaS developers.
To build a SaaS product, a database for back-end data storage is unavoidable. The main databases are MySQL and PostgreSQL.
And finally, you will have to select a server for your application such as Nginx or Apache.
Ensuring sufficient security
SaaS applications move a large amount of sensitive data, which is why having the trust of users is essential and why security should be at the heart of any SaaS platform.
To protect user data, two-factor authentication and role-based access must be offered.
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The SaaS application development company should provide field-level encryption and encrypt, for example, social security numbers or credit card numbers.
It is also advisable to introduce a strict data deletion policy that clearly specifies how to delete and store customer data.
Some of the main benefits that SaaS platforms offer are constant upgrades, feature integrations and support. These functions are extremely useful but require constant upgrades. That is why a company outsourced for this purpose will be able to offer logistical support and advice to meet the business needs of the platform and our idea.
💡 This video explains the concept of SaaS application in just two minutes:
At Yeeply, we are well aware of the advantages of creating SaaS applications. For a company, creating a SaaS application ensures a fixed income in the long term. For the end-user, this allows access to an easy-to-use and always up-to-date product without having to invest a large amount of money, but only small monthly fees. For some of these reasons, SaaS applications are mainly successful nowadays.
If you want to create a SaaS application, tell us about your project and we will put you in touch with the best experts from all over the world!