Software as a service is one of the biggest markets in technology up to date – its worth is predicted to amount to 116 billion dollars by the end of 2020. These numbers, despite being incredibly impressive, are hardly a surprise. Software as a service has been on its peak for a while, and the trend isn’t going to subside. With active successful implementations, like Google Apps, Hubspot, and Mailchimp, business owners looking to develop software as a service, keep exploring this business model and tailoring it to different industries.
Why should business owners develop software as a service and bring it to their markets? What are the opportunities and practical steps for SaaS development? We will walk you through financial benefits to developing software as a service and share our experience.
What is Software-as-a-Service?
Saas is a method of software distribution when an application is hosted on the third-party Cloud service and is available to end-users anytime and anywhere on a subscription basis. Software isn’t longer a product that can be once bought and owned. Instead, it’s a service that is continuously provided by the company and financed by users.
This long-term partnership with clients is Saas’s main distinction as a business model. Customers depend on the company, which is why they form a long-term relationship rather than making a one-time purchase. Even 100-200 regular users can provide steady profits to the company – and the popularity of current SaaS platforms amounts to dozens of millions of clients. At Syndicode, we’ve seen on multiple occasions that software-as-a-service is often the best business model for leveraging long-term profits even for small companies – let us explain why.
What businesses can benefit from software as a service?
Development teams at Syndicode have 5+ years of experience in delivering software-as-a-service solutions. Best practices, hidden pitfalls, business models — we know all the ins and outs and are ready to share. Software as a service is adopted equally by technology-related fields, as well as those that are only undergoing digital transformation. Let’s take a look at the most common applications for saas development software as a service, depending on the field.
Financial institutions and banks switch to software-as-a-service to automate accounting, documentation, maintenance, management, trading, client relationships, and networking. In terms of Saas-adoption, fintech is a niche with incredible potential.
According to Deloitte, financial institutions will likely focus on automating their processes and data analysis. It means organizations are already in the need for online services that would provide them with smart automation opportunities (Mambu), and increase the team’s efficiency (Lumapps). In Syndicode, we developed Less Accounting, a SAAS that allows automating accounting, generating tax reports, and monitoring financial statistics.
Logistics-as-as-service is implemented by leaders of the market like DHL, Amazon, UPS, and others. Companies develop solutions that are distributed to other transformation companies, creating a network of supply chain providers and vendors. Now, logistics businesses are focused on using SaaS to create a safe and transparent environment for corporations.
Syndicode’s team developed a SaaS for Nova Poshta – a leading Ukrainian postal service, where users can get in touch with the team’s developers to get API documentation.
Cloud computing in healthcare is currently worth more than 18 billion dollars and this number is likely to reach 61 billion dollars in 2025. Software-as-a-service will change the way doctors interact with patients, collect data, and study, especially with the adoption of data analytics, AI, and the Internet of Things.
The most common uses of software-as-a-service for healthcare are clinical history systems, billing software, management tools, and educational platforms.
Retail and e-commerce industries are among one the most active ones in software as service development. Brand owners use software-as-a-service to keep track of their sales, forecast potential revenues, automate order processing, and facilitate customer support.
Retail companies often use SAAS for marketing and content management. An example of such software is InstaLinks – a web service where business owners can create short instant links to their website, social media posts, files. Our client wanted to provide brands and influencers with the opportunity to share their activity and track users’ responses.
Benefits of developing software as a service
Software as a Service has proven to be one of the most viable business models right now. When we are developing a SaaS, we are focused on providing benefits both to business owners and end-users. Here’s what our clients achieved after building a SaaS for their businesses.
Flexibility and growth
Software-as-a-Service is delivered continuously and providers influence their clients. You can change the price, functionality, expand to different industries and still target old clients. Cloud computing allows end clients to store large amounts of data without relying on their hardware. Developers, therefore, can easily deploy applications without cutting off potential users who otherwise, wouldn’t have enough storage space or computing power.
When users download a service once, they have a choice to reject updates or forget to install them. With software-as-a-service, providers have full influence on the platform’s improvements. This allows introducing innovations, improve your design and functionality, and send security patches – all while being sure that customers will receive these improvements.
Lower development costs
From our software development as a service Agile experiences, we observed that SaaS can be continuously improved, which is why developers don’t need to release a perfect version of the product right away. Instead, you can develop an MVP and distribute it for free to attract a user app. Once the solution is getting traction, the team releases a paid premium plan, or introduces new features to the main version and switches the software entirely to a paid basis.
Users don’t like to be tied to a certain device or storage. Instead, they prefer to connect to software through multiple channels (web, desktop, mobile), regardless of location. Software-as-a-service works on a subscription basis: each user has a personal profile that is used to connect to personal data and functionality. The model fits perfectly with the habits and priorities of modern users and businesses, which is why it’s viable across multiple industries.
How to develop software as a service
To develop a software-as-a-service solution, you need to look for the best software as a service development company. Look for teams that know how to create and deploy Cloud solutions and build products that respond to the needs of the market. At Syndicode, all projects undergo common software as a service development process.
- Customer analysis. We research the market, understand how we can help the end clients, and what needs will the SaaS solve.
- Marketing research. We look at solutions, developed by competitors, analyze their strengths and weaknesses, and define the target audience.
- Choosing technology stacks. We choose tools for front-end and back-end development, database, and server development, depending on the size of the projects and functionality complexity.
- Defining a pricing strategy and its functionality. Our team will offer and execute an optimal billing solution according to your preferences and needs.
- Releasing the service. We prepare an MVP and show it to the target audience – it’s an excellent way to validate a business model and find the first users.
Syndicode’s experience in software development as a service
We’ve developed web and mobile SaaS across many industries, including finance, logistics, education. LessAccounting, a software-as-a-service developed by our team, provides automation of financial documentation and bookkeeping. Developing this service, we focused on achieving a combination of simple interface and rich functionality. The platform’s business logic is straightforward: users can create, manage, and edit accounting documentation, financial records, and reports.
We used microservices architecture, because of its fast functionality, flexible maintenance, and simplicity. The tool was developed with Ruby on Rails – one of the fastest languages for web development.
If you’d like us to develop software-as-a-service that fits the needs of your business, market, and end customers, we are ready to build an optimal solution for you. Share your idea, and our experts in custom software development as a service will get back to you right away.