Software-as-a-service development is getting more and more popular owing to such benefits as cost-effectiveness, seamless upgrades, accessibility, and scalability. Still, like any other business model, it is not completely flawless. We would recommend paying attention to such drawbacks of cloud solutions as their strong dependency on an internet connection, risk of service termination, and security issues.

A SaaS development company is a software development agency that deals with building and maintaining software-as-a-service products. Such IT companies gather a team of highly skilled professionals–software developers, designers, project managers, quality assurance engineers, and business analysts–under the same roof. Together they work to create secure, reliable, and scalable cloud products that bring value to the end-users and stable income to their owners.

Based on our experience in building SaaS products, we can say that the cost of a cloud solution with limited functionality starts at $80,000-90,000 which is quite similar to the cost of a traditional software designed from scratch. As for the price for a fully fledged software-as-a-service product, it will cost you $200,000-250,000. However, bear in mind that e ach cloud product is unique, so is its cost. Besides, you should know the key factors that have the greatest impact on the total price of a completed digital product. The first one is the project complexity. The SaaS development cost increases with each new feature you implement. The same goes for third-party integrations. Another factor that impacts the SaaS development services cost is the development approach. Partnership with a reliable SaaS application development company will cost you less than hiring and maintaining an in-house development team. Finally, we need to mention the hourly rates of the companies offering SaaS application development services . The developers from Eastern Europe, let’s say Ukraine, set lower rates compared to their counterparts from North America or Western Europe. Still, the quality of the products they deliver remains very high.

The SaaS model works the following way. The software is delivered to end-users via the internet on a subscription basis, which can be monthly or yearly fees. Since such products are hosted by software providers, there is no need to install them on your local computer. An increasing number of organizations now invest in SaaS development services, owing to such benefits of the software-as-a-service model as cost reduction, recurring revenue, seamless expansion to the foreign markets, and high adoption rates.