Software-as-a – Service or SaaS is a software business model in which the software is licensed and is sold via subscription basis to many users regardless of location through web based technology. Typically, the software uses the cloud and is installed in a centralized location. The software does not need to be installed remotely and can be accessed via a web browser.
SaaS applications are often based on or built for complex business processes and functions. Another advantage of SaaS is that it eliminates the need for physical distribution of applications.
The most common SaaS application types are content management systems, accounting services, customer relationship management services, human resource services, hosting services, and website building services.
This year alone, the SaaS industry is expected to have $22 billion in revenue. It is just normal for you to want to have a piece of this huge annual profit. This revenue is driven by the lower cost of SaaS compared to application software providers that require renting machines, physical distribution and long term contracts.
WHO CAN BENEFIT FROM STARTING AN SAAS BUSINESS?
You need to understand businesses and user needs if you want to be successful in developing SaaS applications. Most of your clientele will be businesses and employers who would rely on your software for certain business functions. Though you do not need to be a developer yourself, you should have at least basic coding knowledge and basic understanding in software development in order to successfully coordinate with your programmer and client.
HOW TO START AN SAAS BUSINESS
There are a lot of SaaS products that you can build so focus on what you truly understand and what customers would have a high demand on. There are different SaaS models like Custom Developed Applications, White Label Solutions and WordPress Solutions.
Custom Developed Solutions are applications built from the ground up based on the customer’s needs. White Label Solutions are applications that can be resold and customized by your clients so that they can sell it as their own. WordPress solutions are generally WordPress management tools that let your users handle their own websites with ease.
If you are not a developer, it is advisable to learn basic coding so you can efficiently work with your hired programmer.
The first step in developing an SaaS product is to make sure the architecture is cloud friendly and scalable. Scalable means how well your application adapts with increased demands. Your application should be able to work with multiple users without any problems.
After you have built your web application you need to host your software environment through an open cloud company that has the right resources so that you can test it.
Once your SaaS product or application is ready, launch it, market it and offer quality customer service. This has been the defining factor for most successes and fails in the SaaS industry. After-sales support is important if you want continuous subscription and a high volume of net promoters.
START EARNING WITH YOUR OWN SAAS APPLICATIONS
SaaS products are web based applications that offer scalable, low cost and flexible solutions to targeted audiences. This makes it a profitable business model. Check out the different SaaS models mentioned above to learn how to make it your own profitable business.
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