SaaS Application Development in 2022 – An Introduction for Founders
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SaaS Application Development in 2022 – An Introduction for Founders

We are at the top of the technological revolution where everything is going online. The technology revolution is changing nearly every traditional way of doing things. By replacing the non-automated bulk work done manually, technology makes businesses work seamlessly.
Additionally, automation and the internet of things are revolutionizing the world more than ever before. Nonetheless, at the center of this technological mix is Software as a service.
Moreover, enterprises are adopting SaaS application development too fast. As a result, Advancement in technology development is greatly improving the Saas application development.

For example, in 2021, the Saas Market reached $145 billion US dollars. It is creating a robust multi-tenant software architecture. In fact, Saas technology is making what seemed impossible into fortune possibilities. Saas is becoming an integral part of IT development.
Additionally, the rise of cloud computing provides a scalable and affordable digital infrastructure. In 2021, Saas cloud computing services cost $123 billion and it will rise to $145 billion this year.  

Importantly, Enterprises require an understanding of the Saas product development when deciding to adopt the technology. The understanding of how Saas application development work helps enterprises allocate the engineering architect and budget responsibility. 

Customers won’t care about any particular technology unless it solves a particular problem in a superior way.

Peter Thiel

what is saas

What Is Software as a Service? 

Software as a service is a digital resources distribution model that is distinguished by cloud hosting. Specifically, Saas is a software distribution plan where the cloud provider hosts the application and makes them available to end-users through pricing plans. Therefore, users can access the software through the internet using a browser and internet connection. They can access the services remotely, and there is no need for the physical set-up of the software.

Moreover, the software developer may either host the application in their cloud if they own spaces or contract third-party cloud hosting services. Saas software development brings a lot of convenience to businesses from the easy accessibility and affordability of cloud hosting services. Thus, the users have no need to update the software as the cloud service provider handles all of it. Consequently, easy access through browsers makes the services seamless. Mckinsey & Company projects the Saas market to reach $200 billion by 2024. 

examples of saas

Examples of SaaS 

The cloud hosting of software is becoming an attractive option for businesses. Users do not have to download the software and update them on their computers. Thus, if you want different computers to access the same software, Saas provides the best platform for that.

Therefore, users can simply access the software remotely through any mobile device with an internet connection. This means that they can connect to their business data silos online from remote. They can still complete tasks while miles away from the business operations center. The convenience that Saas application development solutions bring is the reason behind huge adoption.

Examples of Saas application development solutions are Google Apps, Dropbox, MailChimp, ZenDesk, HubSpot among others. You have probably already engaged a Saas software development in your computer and mobile phones. For instance, if you have used the Google Apps and Dropbox readily found in default in many mobile phones, you already consumed the Saas.  

saas aplication development b

How Does Saas Project Make Money?

Saas software development is attributed to the technological revolution leaving many people unsure about how they can benefit from it. The great success of technology in business is raising the curious minds intrigued on how they can profit from the technology. 

Many Saas products come with free variants or trial periods. However, advanced versions require some premiums to access the unlimited functionalities of the software development. Understanding the pricing methods already in the market will help you know where to cut the balance in your Saas product on sale. Businesses are making money from the Saas project in the following ways. 

Flat Pricing 

In flat pricing models, users pay some flat premiums to access unlimited functionalities of the products over a given period of time. The most common flat-rate pricing models include the monthly and annual subscription models. Users pay a fixed amount every end month or year and get unlimited access to the software product. 

Usage-based pricing 

It is similar to the pay-as-you-use model where the size of the software you consume determines your fee. Usage-based allows users to only pay for what they consume. The model is gaining popularity as users must not pay for the many functionalities much of which they do not consume. 

Multiple Tiers 

Multiple tiers divide the functions of the software product into categories accessible through different pricing methodologies. Therefore, users pay for what they think can satisfy their needs. It is close to the usage-based model but here the functionalities are segments. These segments determine the pricing. 


Users get all-time free access to the software product but in limited functionalities. The need for the advanced functions requires payment of some premiums. It is a combination of a free version and a need for premiums for advanced functions. 
Other forms of pricing through Saas software development makes revenue is through per-user pricing, per active user pricing among others. 

saas application development market

SaaS Application Development Market in 2022

The use of Cloud computing exploded between 2020-2021 when everyone went into lockdowns and turned to work remote. The hosting services connected businesses and employees making the possibility of running a business from home. This accompanied the rapid growth of Saas application development solutions.

Moreover, the trends in the consumption of Saas technology will rise in 2022. The market share of the Saas software development in the businesses workloads remains at 70%. This means that every seven out of ten workloads are Saas. 

Though the market share remains very competitive between Saas and other forms of cloud services including the Iaas and Paas, Gartner’s forecast still places Saas ahead in the market spending share in 2022. 

saas business model

What are the Advantages of the SaaS Business Model?

Creating a Saas application is the beginning of infinite possibilities in business management. Besides helping in resource sharing among workers, developing a Saas application comes with many other benefits. 


For startups, liquidity and maintenance costs are very critical to the success or failure of the enterprise. Therefore, capital-intensive technology can be a no-go zone. However, the affordability of cloud computing and Saas application development makes it easy for startups and medium-sized enterprises to access the technology. 


Saas software development is scalable. You do not need to access the full functions at the beginning. You will variety of free versions to try your hands on the technology. Thereafter, you can unlock the premiums of what you need and pay for that which benefits you only. Additionally, Saas easily integrates with other AI systems. 90% of the Saas products would easily integrate with other AI systems.

Recurring revenue 

The flat pricing models in Saas generate recurring revenue without the need of finding new customers. Though broadening the market share is essential for the growth in the revenue, the monthly and annual subscription offers guaranteed revenue regardless of the increase in the number of customers. 

saas development from scratch

Saas Application Development From Scratch

Saas software development is giving a business lot of advantages by replacing the traditional requirements of licenses of software. However, many people are still wondering how they can dive into this new technology and enjoy the infinite benefits. We will show you how. We help businesses attain the peak of this technology by building a Saas app from scratch.  

Analyze the market 

Market analysis is an integral part of the Saas software development. You need to understand your competitors and what is already in the market. Like any other business, competition is already high with everyone seeking to supply the Saas software development services. Analyze what others are offering and creatively think on what unique feature you can add to keep up with the competition. 

Make a business plan

Developing a business plan is key to the creation of a Saas application. The business plan will inform the model of the Saas application you intend to develop. Assess your business needs and then make up the plan to feed into the needs using the Saas technology. Be sure of the input of the Saas technology that will help actualize your business plan in a cost-effective manner. In the long run, we are looking into affordable solutions that deliver the best value for money. 

Build a Development Team or Outsource

Having analyzed the market and developed the business plan it is now time to go for it. You need to have an able team of developers to develop the Saas application. You can choose to equip your internal team with the necessary infrastructure to develop the Saas application.
However, outsourcing is also a viable option. There are already more than enough development teams in the market that builds Saas app from the scratch.

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