Sunday, January 1, 2023

How to Calculate SaaS Development Costs by Type and Location in 2023

SaaS development costs are a crucial aspect of your project, and you may need to calculate them separately from the other ongoing expenses when choosing on how to spend resources towards it. This article will help you in understanding the overall cost of such projects by type and location.

What Is The Cost Of An SaaS Project?

As we mentioned earlier, an SaaS (Software as a Service) is essentially a cloud-based service that provides services and products for use by many users at once. Therefore, it can be divided into three types—one, two-tier, or multi-tier. When developing software for both, single-tier and multiple tier systems, it is required to divide these costs into its own segment. As per business requirements, some companies decide to take care of each stage along with building components within a particular time frame, whereas others may need additional features for further expansion. Some examples of different SaaS solutions include accounting software, CRM software, e-learning platforms, web portals, etc.

The typical structure of this kind of solution is shown below:

Where You Will Need The Required Software Components Here It Makes A Difference If Your Company Needs Multiple Tier Systems For Its Future Growth

Let us understand how to calculate the total cost of such solutions by using their respective modules. We have used Microsoft Dynamics NAV to show the same by splitting up all the required modules of one version and adding them to another depending on the system requirement. Additionally, there is also an option where we multiply it up to determine if there is any possibility of over-investment. After calculations are complete, you are left with a rough estimate on how much it will cost you.

Different Types Of SaaS Solutions

We have already shared with you about all the various kinds of SaaS solutions. Let’s start our discussion towards the common ones like subscription-based systems, freemium offerings, and other popular platforms. Also, you can read further about those solutions here.

SaaS Platforms Available With Free Or Flat Pricing Plans

This section covers free and flat pricing options available for every kind of SaaS platform available in the market today. So, let’s dive deep and find an answer of which of the following SaaS tools are best solutions for your company’s needs? Let's see.

1. Salesforce CRM System

If your clients or end users are using enterprise and not personal user management applications, then their preferred way of interacting with your products could be through online meetings. But before they could do so, salespeople might need to provide detailed data of what can be done right now, and when clients would be able to implement your suggestions. The ideal tool would be a CRM software to make them aware of who they should contact and which customer accounts they should follow next. However, it has been said in interviews that “Salespeople want instant access as well as long-term access to clients, which means you need to support real-time connections between customers and product teams”. According to experts, with its ability to track leads and assign tasks to individual members of your team, SAP ERP offers significant benefits that surpass the standard CRM software. It supports integration with external sources, too. Furthermore, it helps you gather insights around customer buying cycles and better serve potential buyers. In short, it lets you handle customer relationships from start to finish—not just the sale itself. What are you waiting for? Get started!

In terms of pricing plans, you can choose from five options for your initial usage and purchase your plan thereafter for higher customization. The cheapest plan begins at $99/month and goes up to $1099/month, while the most expensive package starts at $1599/month and comes with unlimited contacts. Other than price points, availability, and features, your budget decisions would depend on the purpose of the application and amount of money you can devote to it. One thing more, you must consider that even after purchasing any plan, you can continue using it indefinitely after your term expires. These applications offer ample templates and add-ons for your specific areas of focus.

2. NetSuite ERP Suite

NetSuite ERP was initially launched in 1997, and ever since its launch, NetSuite has become a staple for businesses across North America and Europe. The core principle behind the NetSuite ERP suite revolves around offering a combination of financial functions, customer relationship management, supply chain management, inventory management, payroll, human resource management, manufacturing optimization, business process automation, distribution, logistics, and procurement systems. With all its modules and functionalities integrated, netSuite enables organizations to perform several distinct but related processes and capabilities simultaneously. While the interface and design have remained largely unchanged throughout the 21st century, its operational functionality has evolved continuously, which has made NetSuite an excellent choice for a variety of industries and sectors. From being simple to complex, advanced functions have allowed NetSuite to transform itself into something unparalleled. That makes it worth considering as your future IT infrastructure. Moreover, the NetSuite platform is easily scalable and extensible to match your organizational growth goals.

You may choose to work without billing for 15 days or longer, which allows you to test out the NetSuite applications and get accustomed to operating it for a couple of months without having to pay any extra fees. The basic packages may even come with complimentary upgrades if all your preferences are met. The reason why NetSuite gets listed highly among other comprehensive and modern ERPs lies in its modularity and flexibility, making it easy for businesses to expand their operations as expected. All in all, taking advantage of the full functionality of the module is sure to open new doors to your employees and optimize your workflow.

Overall, to get a feel for the scope of NetSuite, check out the NetSuite comparison.

3. Sage 50 Plus Cloud ERP

Sage is regarded as leading global technology solutions provider, providing its world-class software development and implementation services to over 1,000+ businesses worldwide. Recently, the firm created Amazon Web Services (AWS), Amazon Compute Engine (Amazon EC2), Azure Power, QuickBooks Online Accounting, etc., making it possible for independent vendors to develop innovative solutions from scratch. Hence, Sage is one of the first major players to create SaaS apps for different businesses that needed customized features for its functioning. Now, Sage has expanded its portfolio by introducing Sage 50 Plus Cloud ERP. This SaaS solution is a robust standalone ERP suite designed to handle the growing demands of enterprises. In addition to its usual modules, Sage 50 Plus includes customer relationship management (CRM), retail processing, warehouse management, supply chain management (SCM), order management (OM), finance management, supplier management, workforce management, etc. Thus, Sage 50 Plus Cloud ERP has proven it to be an exceptional fit for SMBs.

Sage's flagship ERP suite is Sage 50+, comprising six main modules: Accounts Payable, Invoicing & Billing, Supplier Management, Order Management, Finance & Accounting, Human Resources, and Operations & Supply Chain. Together with these six modules, Sage 50+ consists of 36 add-ons to extend the value of the app. This software-as-a-service model gives firms greater control and flexibility over business intelligence, forecasting, and decision-making. Along with the above-mentioned six modules, Sage 50+ comprises four supplementary modules named "Integration", "Business Intelligence," "Finance & Accounting" and "Customer Relationship Management". Since Sage 50+ can integrate with both traditional and non-traditional third party applications, it remains an ideal fit for mid-sized businesses that require customizations. However, it is recommended to assess whether the software meets your organization’s needs before hiring a vendor to deploy it.

4. SAP Customer Engagement Solution

When working with customers, you want to stay ahead of the game. Organizations that fail to respond to client questions, emails, and messages in enough detail risk losing loyalty and attracting bad press from competitors. Consequently, it becomes important for managers that the communication channel you choose for interaction with your customers becomes strategic. The solution that solves the problem of poor customer experience is typically called “customer engagement”. At first glance, this sounds like the same idea that customer feedback is critical for improving the quality of their interactions. Actually, it’s quite different. Consider this scenario:

A store owner has noticed how people were dropping off bags and items at her shop along the streets. Besides, she finds that customers tend to leave empty bottles and boxes of coffee grounds, which causes inconvenience to everyone. She decides to ask for help and asks one of her salespeople to communicate with her over the phone. Then, he say something like that “we think we can help you by calling back to you.”

While the store owner is confident that she has found the optimal solution to her problem, however, she does not know what exactly is the problem. On top of that, in the past 24 hours, she also received calls from three different stores from prospective customers asking for cash instead of credit cards. There is no doubt that they are upset about the situation and feel disappointed in her. Because of this, she wants to know what happened exactly and what is going on in her business in response. They says: “the man did not tell me exactly what happens now and never ever told us, but he just ask us if we think possible to cancel the "credits" to buy things through cash” — and it was true… The salesperson had forgotten to mention the transaction of credit cards and cancelled them as they came in. Unfortunately, the customers are unhappy with her and have decided to go elsewhere.

If you notice this situation, you would probably agree with

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I am Sidra Altaf, an entrepreneur by blood, Pro Blogger, SEO consultant. MA Physical Education GC University Faisalabad. Professional Beautician & Vlogger at Youtube: