Why is SaaS Application Development in Trend?

Just think about it for a minute, and you’ll realize that SaaS should have been part of our tech integrations even earlier than it did. There are a myriad of verticals where SaaS can be the perfect technology platform to boost the revenue and multiply the business manifolds.

So, we will be presenting a complete guide on SaaS platforms, the best SaaS ideas, and how to make money from it.

You probably belong to one of the two categories of readers: Either you’ve reached here after doing extensive research on networking sites, forums and web communities, or probably you are lucky and began your research from the right place.

This blog is going to change your business perspective if you have a SaaS startup idea, but if you are still in search of that million-dollar idea, then this blog is an even better fit for you.

According to the Statista report, in 2020, the SaaS market was predicted to be worth about US$ 132.57 billion worldwide. The market has been predicted to rise to US$ 234900 million by 2028. There is a lot of scope in this industry for the best SaaS business Ideas or SaaS product ideas.

If you wish your SaaS startup ideas to make huge revenue, you will need to consider factors like churn rate, monthly recurring revenue, and customer retention. But no need to worry about all these heavy jargons, we’ll get to them some other day.

Today it’s all about the basics of the SaaS business model.

I am sure you must have many questions like:

  • How to start a SaaS business?
  • How to build a SaaS product Company?
  • What is SaaS?
  • How does a SaaS model work?
  • How to build a SaaS application?
  • Can I customize SaaS software?
  • How to start a Software as a Service company?
  • How to build a SaaS platform?
  • Is it worth starting a SaaS business?
  • How to build a cloud-based SaaS application?
  • Which is the best SaaS application developer firm?
  • How SaaS development model provides ROI?
  • Why SaaS from SaaS vs PaaS vs IaaS cloud service models?

If you are still new to this whole SaaS platform thing, then this is the perfect blog to start from. We’ll begin with SaaS basics, move ahead with some quick pointers on the SaaS business model, and by the end learn about the most profitable SaaS-based web app ideas to start in 2024.

What is SaaS Development?

Technology has the solution for every problem today, and business plans which provide solutions for such problems are ruling the industry. A SaaS platform is just that. A business that sells pay-per-usage model software to other companies to run their business is a SaaS-based company.

If you want to move a step above mobile app development, then you can go for SaaS-based software products for your startup idea. The SaaS-based software solutions are basically cloud software development with solid technical architecture. SaaS applications are the hottest area of the enterprise world with prime extension in cloud-based SaaS services.

cloud-based SaaS services

The main three sections of public cloud services are SaaS, PaaS, and IaaS. SaaS held the highest revenue in 2018 with $72.2 Billion while the other two were Iaas at $31 Billion and Paas at $15.2 Billion.

Slack is probably the best example of a promising SaaS software making big bucks. Almost every large or small company uses slack to communicate with employees. If you have ever used slack, then you were a consumer of a SaaS-based product.

What are the Advantages of SaaS?

SaaS Development Platforms have several advantages for the service buyer as well as the provider. Here are the most prominent benefits of opting for SaaS application:

For SaaS Provider

  • Easier & Faster Deployment
  • Lower Upfront & On-Going Costs
  • Shorter Time To Benefit
  • Ability To Leverage Software Improvements Instantly
  • An Extremely Scalable Business Model
  • Scheduled or Annual Recurring Revenue

For SaaS Buyer

  • Infrastructure Management
  • Database Management
  • Solution Monitoring
  • Security & Connectivity
  • Solution Support & Upgrades
  • Bulk Data Migration

How Do SaaS Service Companies Make Money?

The best approach is offering cloud services – A free one or perhaps the one offering a pay-per-usage model. Provide a platform to other businesses in your industry to connect with customers affordably with customized development of SaaS application.

Some people cannot afford the development of an iOS / Android app for their businesses but are still in need of a mobile solution. You can make good revenue out of this need by creating a SaaS solution and sell it to interested businesses for a one-time payment, monthly subscription, or a profit margin on their sales.

Which Are The Top Saas Startup Ideas For The Industries?

The best SaaS business models can be found all around us, from retail stores to large factories and even suburban localities. We have traced the 5 most lucrative industries that are a sure profiting sector to try out your SaaS solution.

SaaS for Education

The year’s most hot favorite idea is to create a SaaS-based startup in 2024 for universities, schools and playschools. This niche SaaS idea of educational app development solutions has features like library management, staff management, and parent connectivity in a single SaaS app.

SaaS for Restaurants & Hotels

A SaaS model for Restaurants and Hotels is needed to manage the ERP, payroll, staff management, online booking, etc. It’s probably the most used SaaS solution in the world.

SaaS for Taxi/Cab Business

Create a SaaS application for taxi dispatch solutions and SaaS software development with major elements like real-time tracking, online booking, payment, etc.

SaaS for Healthcare

Build SaaS application for the healthcare industry that includes online appointment booking software, chatting feature and cloud storage integration for patient data safety.

SaaS for Corporate Industry

Companies are always looking for new ways to streamline their work to save money and time. SaaS applications that provide platforms for collaborative work and consistent communication are the most profitable SaaS business model.

How Does Saas Business Work For The Industries?

Now we know which are the best industries to develop a SaaS application. But how does the SaaS business model exactly work?

A SaaS app development model primarily includes three elements:

There is a Customer App using which your customers can access the services, offers, and discounts of your SaaS solution.

Then comes the Service Provider App using which the service or product provider connects with their customers easily and can manage online orders.

Finally, the Admin Panel Dashboard will help you (the admin) to handle every aspect of the business, including the other two stakeholders. You get complete information about every small part of the SaaS solution, like order details, staff information, customer information, etc.

Let’s simplify the whole SaaS working process by understanding it with an example.

Let’s consider there are many flower shops in your city. They want to try out the on-demand flower delivery business but don’t have the budget to do so.
You can develop an app for all the local flower vendors. Your SaaS-based software solution will include an On-Demand App for customers (the flower buyers), an app for florists, backend, and a website.

Now, you can sell the SaaS subscription to interested florists which give them features of your SaaS model. You can charge a one-time fee, monthly/yearly subscription or a profit percentage on every sale.

Isn’t this easy and a great way to do business? On-Demand flower delivery was just one example of what this solution can achieve. If you wish to read about similar on-demand app ideas, we suggest you read the blog Most Popular On-Demand App Development Startup Idea in 2024.

Most Popular SaaS business Models or Platforms in the World

  • Uber
  • Slack
  • Atlassian JIRA
  • Urban Clap
  • ZOHO
  • Basecamp

Bonus Round for SaaS Surprise

We kept the best for the last. Being one of the best SaaS application development companies around the globe, we have developed: Remote POS

Remote POS Is one of the best SaaS models for restaurant owners in Australia.

Besides being one of our favorite clients, Remote POS is one of the best examples of a successful SaaS-based business running in Australia. This SaaS startup has achieved the impossible when it comes to business expansion.

Remote POS offers a complete mobility solution to restaurant owners with features like:

  • Printer connection with the app of the store owner for instant billing
  • EFT integration for card payment integration
  • Online food ordering and pickup options for customers
  • Loyalty points integration for customer retention
  • Push notification for offers and discounts
  • PHP admin panel to manage the orders, staff details, and customer information

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Tell Us About Your SaaS Startup Idea

We hope this blog did everything that you expected when you came here. Enough about SaaS and us, let’s talk about you.

So, which is your industry? Did you get the idea of how a SaaS business model works and how to build a cloud-based SaaS application?

Are you still having doubts about how to build your SaaS application/SaaS platform/SaaS Product?

Talk to our Business Executives, and discuss your industry needs. Get started with your own SaaS application developer from Excellent Webworld today.

Mayur Panchal

Article By

Mayur Panchal

Mayur Panchal is the CTO of Excellent Webworld. With his skills and expertise, He stays updated with industry trends and utilizes his technical expertise to address problems faced by entrepreneurs and startup owners.