As the tech industry continues its migration to the cloud, more businesses are embracing a SaaS product development process. SaaS, or Software as a Service, is the model for most modern software products for a good reason.
For starters, SaaS applications can be accessed from anywhere with an internet connection, making it convenient for remote teams to collaborate efficiently. It’s also cost-effective. Developing a custom SaaS product reduces the need for expensive hardware, software licenses, and maintenance costs. But what goes into developing software as a service? This article outlines nine key steps in the SaaS development process.
What is SaaS?
In the Software as a Service (SaaS) deployment model, a third-party provider builds applications within a cloud infrastructure and makes them available to users via the internet. Many SaaS applications work on any device with an internet connection and web browser.
When SaaS debuted, it marked a radical change from software products that only ran on the local machines on which they were installed. SaaS quickly led to Platform as a Service (PaaS) and Infrastructure as a Service (IaaS) products. Nowadays, SaaS has mostly replaced locally installed software. With broadband technologies and 5G making internet speeds faster, more services and applications will migrate to a SaaS platform.
How Is SaaS Implemented?
There are three primary ways to implement SaaS solutions: Private, Public, or Hybrid Cloud.
Private Cloud
A private cloud involves a dedicated, on-demand infrastructure and resources used exclusively by the organization that owns it. Another term for a private cloud is “on-premises data center.” The organization is responsible for the private cloud’s hardware, software, and security. Users must either be on-premises or connect remotely via a virtual private network (VPN) to access the private cloud. Use cases for a private cloud include regulatory compliance, enhanced security protocols, or leveraging existing IT infrastructure.
Public Cloud
Public clouds have a shared, on-demand infrastructure and resources controlled by a third-party provider. They are generally where you find SaaS solutions, as well as IaaS and PaaS. The biggest names in public cloud providers are Amazon Web Services (AWS) and Azure, but they have many smaller competitors. Use cases for public clouds include young companies with no legacy infrastructure or outdated applications and smaller companies that can’t afford an on-premises data center or private cloud.
Hybrid Cloud
Hybrid clouds combine public and private cloud services when their on-premises data center alone can’t provide a consistent experience or when they want to migrate from a private cloud to a public one. A hybrid cloud approach benefits from elasticity and scalability, allowing companies to handle occasional heavy loads their private cloud can’t manage. A sample use case would be a retail business that sees increased demand during the holiday season. It doesn’t make sense to increase their on-premises infrastructure just to have it sit unused most of the year. A hybrid cloud arrangement lets them scale up their frontend from private to public cloud servers to meet the holiday demand, then scale back down after the rush. Organizations migrating to a public cloud can use a hybrid setup to move systems over piecemeal, preventing a disruption of day-to-day operations.
The SaaS Product Development Process
Regardless of the type of cloud instance used, the following nine-step SaaS product development process helps ensure the creation of a high-quality product.
1- Conduct a Market Analysis
Before beginning SaaS platform development, product teams must shift their focus from what they’re developing to the users they’re developing it for. What issue does this SaaS product solve? Who is the target user? What differentiates this product from the competition? At Etelligens, we start by researching and analyzing market share, market size, consumer trends, market demands, customer expectations, and more. Our market analysis identifies the end users’ key challenges, then looks to see if the competition is meeting those challenges. Analyzing the market can identify any inconsistencies and weaknesses in the product concept during the early development stages. It’s a great way to test the team’s ideas and gather valuable insights into users’ unmet needs.
2- Gather the Fundamental Requirements
A SaaS product requires planning for privacy protection, security audits, customization options, and scalability. Security is essential. With cyberattacks on the rise over the past few years, users have become increasingly concerned about the safety of their data. In response, governments now impose steep penalties for data breaches.
3- Estimate the Budget
The team should have enough information to estimate the budget at this stage. Their estimate will give the key stakeholders a realistic view of what the entire SaaS product development process will cost. The budget includes costs for design, coding, business analysis, customer support, maintenance, and marketing. When budgeting, consider all possible challenges and setbacks that might impact the budget down the road. Unforeseen expenses could require a search for more funding in the middle of development, leading to unwanted delays.
4- Determine the Business Model
The business model needs to support long-term success and consider the product concept, audience segment, and revenue goals. Whether it’s a one-time purchase, subscription-based, freemium, or something further off the beaten path, the business model must ensure the product has the best chance to generate the required revenue. Common SaaS product pricing models include freemium, pricing per feature, flat rate subscription, pricing per user, and usage-based pricing. A suitable pricing model depends on the target audience, product type, long/short-term goals, and other factors.
5- Define the Technology Stack
The technology stack is a list of all the technology services required for the development of a SaaS platform. Different technology stacks offer advantages and disadvantages. The goal of this stage is to determine which tech stack has the right combination of tradeoffs. Key technologies to consider include frontend frameworks like Vue.js, Angular, and React for the user interface, and backend technologies like Django, Node.js, AWS, Azure, NoSQL, PostgreSQL, and MySQL for the business logic and data storage.
6- Develop an MVP
Once the team finalizes the technology stack, the next step is to develop a basic version of the SaaS product, known as a Minimum Viable Product (MVP). An MVP is a simple but functional version of your product that solves a single, significant problem for your users. MVPs help reduce development costs, accelerate the product’s market release, and test the demand. Teams use MVPs early in the development process to identify flaws in product design and make critical development decisions.
7- Test and Iterate
Once the MVP is built, it gets tested by a group of early adopters. The testing phase helps determine if the product concept meets the needs and desires of the targeted users. By gathering user feedback early in the development process, the product development team can make the next iteration of the product better. An iterative approach helps the development team correct their course early on, testing the product’s viability before devoting too much of the budget to it and avoiding costly and time-consuming rework.
8- Check and Release the Final Version
With each iteration of the SaaS product development process, the product should get closer to meeting the business goals and customer needs. A clear definition of done and regular review of its application reduces partially finished work, wait times, and the cost of rework. It also gives the quality assurance (QA) team a list of criteria to be met as they test the product for defects. Once the product passes the QA phase, it’s ready to be prepared for release. Depending on the product type, this could mean readying it for upload to a SaaS distribution channel, which can either be direct or indirect.
9- Support and Maintenance
After the SaaS product is released, the support and maintenance phase begins. Maintenance for a SaaS product usually means continued iteration. The SaaS product support team helps users resolve issues, gathers feedback, identifies errors and defects that need to be fixed, and helps onboard new users. Maintenance involves fixing errors and defects and identifying opportunities to grow the product and add new features. By analyzing customer feedback, the SaaS product development team can look for ways to expand and improve the product.
Need Help with SaaS Product Development?
SaaS product development is a complex process, and this overview only scratches the surface. To build a quality product, you need a dedicated team of experienced product engineers, business analysts, QA experts, and more. The good news is that you don’t have to hire an entire SaaS product development team. For a fraction of the cost of hiring an internal team, you can engage an experienced SaaS product development company—Etelligens. Partnering with our SaaS product development experts allows you to build custom solutions, update your existing product, and integrate older systems and new applications—without overburdening your internal teams. Achieve better performance and substantial cost savings. Outsource your SaaS software development needs to Etelligens. Contact us today!
