Nevertheless, software vendors are not lagging behind and today there are a huge number of software solutions that can be useful for various companies. And while many companies make their choice in favor of purchasing software from vendors, it remains obvious that such a solution is not able to solve many of the unique problems that companies face.

Given such a large number of different factors, it becomes obvious that it is impossible to give a clear answer to the build vs buy software question. In this article, we tried to compare both options and explain under what circumstances it is recommended to use each of them, with insights from a reputable software development company. Although this material is still not a direct guide to action, we believe that it can be useful for those who are faced with this dilemma.

1. When Do Entrepreneurs Face This Dilemma?

The situations when businesses need software solutions vary depending on the industry and the specifics of the company. In most cases, such companies first evaluate ready-made solutions, since their implementation can be done much faster. When it turns out that none of the ready-made products can truly solve the business problem, the question arises of whether to develop your custom solution.

So, as an example, we can consider an IT enterprise that seeks to optimize its business processes by introducing a high-quality CRM system. There are many ready-made options on the market, but none of them seems to be an effective solution. That’s when you need to develop a custom CRM, which will be tailored to the needs of a particular company and will bring value.

And although the decision to create a custom product “just for me” seems to be the most logical and correct, it is not suitable for each business. Before making such a decision, it will be wise to consider several points.

2. Build vs Buy Software: Technical Criteria to Consider

In deciding whether to build or buy software, you’ll have to evaluate all relevant factors. You need to assess factors like your project requirements, the upfront cost, long-term maintenance, etc. And more than just the internal factors, you should also consider how external users can work with it. Here are some criteria to consider:

2.1 Price

It is absolutely clear that entrepreneurs and business representatives are trying to reduce their costs. Often, the decision to implement some kind of software is explained by the desire to reduce future costs.

Within the build vs buy software dilemma, there are two main arguments most often encountered. First – the purchased solution will start to bring value almost immediately. Second – creating a homemade product can be an overwhelming burden for the company’s budget. Both arguments are valid. However, it is hard to say which one is the best for a particular case. A purchased solution doesn’t need large costs and is implemented quickly. However, more often than not, it still requires either a large single payment or a monthly payment. You will be charged constantly and the benefits that off-the-shelf software brings aren’t always sufficient.

Thus, although developing homemade software will cost more, eventually, it will pay for itself since it will bring business value. At the same time, it is worth making a reservation and saying that you need to sensibly assess your capabilities. It’s a terrible mistake to go into debt for the development process if you understand that your business has no opportunity to afford such expenses.

2.2. Maintenance & Control

Maintaining the work of any software is a separate stage that requires certain resources. Selecting between the build vs buy software, it is worth saying that the software vendor is most often engaged in maintaining the operation of its product. Thus, any bug fixes, database updates, etc. aren’t part of your duties, so you don’t need to spend resources on these tasks.

However, this coin has a downside. Since the purchased solution is being supported by the vendor, you, as a client, will have no control over the operation of this software. Thus, any shutdowns, unwanted bugs, or updates will be made regardless of your desire. Therefore, you can face a frequent situation when constant problems with the product or one unsuccessful update forces business representatives to refuse to continue using this software.

2.3. Coherence

Of course, modern businesses, especially related to the IT industry, have a set of complex tools and processes that harmoniously interact with each other. These can be time & task trackers, CRM, CMS, risk management tools, a bunch of different connectors and communication tools, and so on. That’s why the introduction of a new tool often causes coherency problems. Thus, a new solution may conflict with existing tools and require a complete overhaul of present workflows.

This problem can be avoided only by resorting to building a custom solution. By developing software from scratch, you can take this factor into account and build a product that ideally fits into the existing frame and will be coherent with the tools already in use. This is one of the most important points to consider in the build-or-buy software debate.

2.4. Customization and scalability

As you know, off-the-shelf solutions are called so because they do not imply any major adjustments. Yes, there are situations when software vendors make big changes and add new functionality based on the wishes of a large number of customers. However, no one will do it just for your sake. In case you urgently need additional features, you just have to stop using this product and choose something new.

On the contrary, the product developed by you has the capacity to scale and expand from the outset since you can point this opportunity at the design stage. Thus, your product is easily amenable to any changes and scales perfectly in connection with changing business requirements.

These four factors are crucial in the struggle between build vs buy software. Of course, some additional and unique factors are specific to certain companies. However, more often than not, businesses make decisions based on these four considerations.

3. The Pros & Cons Of Buy And Build Software For Businesses

To consolidate the information received, we suggest that you consider the following two tables of buy vs build software-pros and cons, which can become a reliable assistant in this dilemma.

3.1. Custom solutions

3.2. Ready-made solutions

4. Summing Up

As you can see, build vs buy software analysis implies that each option has its pros and cons that can be useful for certain companies in specific situations. Of course, a custom solution is always a more useful option, but it comes with some additional costs and risks.

We said at the beginning that we would not give a clear build vs buy software assessment. Nevertheless, to draw some line, let’s look at several possible consequences of a wrong build vs buy software decision.

• First of all, your problem will remain unsolved. Simply put, the wrong choice won’t bring you value and you just waste your resources.

• Also, making a choice in favor of custom development, while the existing solution on the market has all the needed features, you doom yourself to unnecessary waste of money and time.

• At the same time, choosing a ready-made solution, while you have a clear understanding of how to build your own software program, you lose the unique opportunity to receive real value, solve your problem, and bypass competitors.

We advise you to carefully approach the question of whether to make or buy software and study your case to make the only right decision for your business.

There are some great marketing trends that the SaaS travel industry may find useful to utilize this year. In this article, you’ll learn some of the latest statistics for the travel sector in general and five marketing trends to know about as a business in the software development as a service market.

1. Travel Industry Statistics in 2024

It’s not been a great couple of years for the travel industry and due to COVID-19, the industry worldwide is expected to lose $810.7bn USD as a result of the pandemic.

Whilst it’s a lot of money, the travel industry, just like the hospitality industry, can bounce back. Many of us love to travel and the same goes for workers. A staggering 92% of business travelers find a better quality of life when traveling for work.

Traveling helps to connect businesses and individuals together on a personal level. Calls, emails, and video conferencing can only do so much. In 2024, businesses are looking to do more traveling, which means plenty of opportunities for SaaS companies that provide travel support for clients.

2. Who Are Some Great Providers For The SaaS Travel Industry?

There are some great providers within the SaaS industry that are worth knowing about.

2.1. TravelPerk

For corporate travel, TravelPerk is a great choice. They provide the world’s largest travel inventory, whether you’re after transport or accommodation for your employees.

Its easy-to-use intuitive design is why so many businesses opt to use this platform amongst other competitors. Described by TravelPerk themselves, they claim to be the best tool for corporate travel as an all-in-one solution. They’re a fantastic agency for corporate travel.

2.2. Netradyne

For some businesses, offering travel services means safety and professionalism are key.  It’s not just about providing your clients with transport but delivering on safety when they’re in your care. Netradyne is great for offering driver safety monitoring solutions. Having an awereness of how yoour drivers are reacting and behaving on the road, can help keep your customers satisfied.

2.3. GetYourGuide

For those travelers looking to skip the queue or book activities in various locations across the world, GetYourGuide is a must-have in your SaaS tool kit. For most customers when traveling abroad, knowing what to book in order to see the sights or keep entertained can be difficult. 

Having a booking engine that showcases all your options available to you, is a useful one and offers free cancellation policies up to 24 hours in advance. It offers plenty of flexibility for anyone looking to book excursions abroad or within their own country.

3. Five Marketing Trends For The SaaS Travel Industry

As a SaaS company, making use of marketing trends is extremely beneficial. Keeping your finger on the pulse of what’s trending can help you maximize your marketing efforts and to make that budget you have available, go further. With that being said, here are five marketing trends for the SaaS travel industry to adopt this year.

3.1. Offer A Personalized & Tailored Experience

It may require more legwork on your employees’ part, however, you can save a lot of resources if you’re doing everything you possibly can to hold onto existing customers. You can save yourself a lot of money and hassle by enhancing your current customer’s experience with your brand.

This is also a great method to help pull in new customers to your platform. When making comparisons with other competitors, they’re more likely to opt for those that provide a more tailored service. It makes them feel valued and not just another transaction. 

Customers are willing to pay for it too, with 86% of buyers paying more for a great customer experience. If they’re willing to pay, then focus on offering them a personalized experience that starts when you market your product or service.

3.2. Make Your App Or Website Mobile Friendly

It’s obvious that many internet users are opting to use their mobile devices for navigating the web, over any other device.

An app or website that’s mobile-friendly is going to provide a better user experience for the customer. There’s nothing worse than having landed on a website or app that hasn’t been configured properly for mobile use.

With smartphone usage expected to rise, all SaaS companies operating within the travel sector should be highlighting the use of mobile-friendly products to their customers. Accessibility is a big one that is growing in its importance. A lot of sites and apps don’t have an access-friendly version available. This freezes out anyone with accessibility needs, which may be valuable customers for the business.

3.3. Encourage & Promote Customer Reviews & Feedback.

Not all businesses focus on their customer reviews or feedback, especially if it’s not that positive. However, it’s useful to encourage and promote customer reviews because many users online are looking at them. 

They are often influenced by other people’s feedback, so even if it’s negative, you should be doing something about it. Nearly 95% of customers read reviews before making a purchase. That’s data that no business should be ignoring, particularly in the case where reviews aren’t all that gracious.

If you’re being seen to tackle those less than positive reviews, it’s going to change perceptions of the new customers who are assessing your business. 

3.4. Utilize Social Media Influencers Within The Travel Industry

Collaborating with social media influencers and even businesses or individuals that would actively use your product is essential. Just like customers online are influenced by customer reviews, many also take the advice of social media influencers when it comes to making a purchase.

A lot of businesses have become trustworthy in their own right so as a travel product or service, it’s worthwhile partnering with both where possible. Many brands are leveraging social media influencers to advertise their business and so you may find it useful to include them in your marketing budget for 2024.

A top tip when it comes to collaborating with influencers is to ensure they’re the right fit for your brand. It’s a waste of your budget to pick those influencers who may look good at first glance but their engagement and reach are poor in comparison. 

When doing your influencer outreach, assess their profile beyond just the amount of followers they have. Make sure their engagement is good and that they’ve got a good connection with many of their followers.

3.5. Push Your Sustainability & Concern For The Environment

It comes as no surprise that more of us are worried about the harm we’re doing to the environment. With 68% of millennials buying a product with social or environmental benefits in the last twelve months, the future generations are who you should be targeting.

If you’re not already, find ways that you can be more sustainable in your approach to the environment through tour products or the business. It may be that you actively promote and run initiatives that benefit the environment. 

Telling your customers and the world about what positive impact you’re making is going to do wonders for your business. Look at how your business can be more sustainable as this alone can help to cut down costs and give you something to talk about online.

4. The Benefits To Following Marketing Trends

Following the latest marketing trends are a great way of keeping up to date with all the necessary changes and improvements you should make to your marketing strategy. There’s always room for improvement and the market is always changing.

4.1. They Keep Your Business Relevant

As well as being useful to everyone else, they keep your business relevant. When you’re making use of marketing trends, it keeps your business current and up to date with the rest of your competition.

4.2. It May Uncover A Gap In The Market

When it comes to marketing trends, adopting one of them might result in you uncovering a gap in the market that’s currently not being catered to. This can be great for expanding the business and an opportunity to boost your sales or awareness of the brand.

4.2. More Opportunities For Success

As mentioned above, the right marketing trends can help deliver more success for your business. These marketing trends are popular for a reason and as a business, it pays to be invested in what’s working for other companies within the SaaS travel industry.

If you’re a SaaS brand, then there are plenty of trends that you could pick up and run with to help your business succeed. Don’t forget to take a look at other SaaS travel brands that are making big movements within the industry. It’s a great way of finding some inspiration for your own business in 2024.

This is where the secure software development life cycle (SDLC) comes in to address security vulnerabilities early enough in the concept and design stages. A secure SDLC follows a long-term security-first approach to software development where every phase is thoroughly screened to minimize threats, with insights and expertise from a trusted software development company.

1. Why is a Secure SDLC Important?

The digital transformation age is full of new tech advancements that guarantee efficient processes and cost-saving opportunities for companies of all sizes. The shift to the cloud, for instance, is now mainstream, and several businesses are halfway in their transition. And while moving legacy systems to the cloud is a good thing, it comes with several security risks. So, organizations that are not prepared to face such risks are probably on a compromised edge. 

That said, a secure SDLC plays a central role in the implementation of robust application security. It seeks to maintain safe and secure operations from the conceptualization stage to deployment and maintenance. The benefit is that it becomes easier to spot security threats and to resolve them before they wreak havoc.

Thanks to already-developed functionalities available in various open-source components, most software developers do not have to code from scratch. This saves time as it allows developers to focus on building more innovative projects instead of reinventing the wheel. The problem is that the open-source database is more vulnerable to security issues, especially if it’s not well-maintained.

Therefore, a secure SDLC allows developers to run through security scans on open-source components before adopting them for use in their projects. A secure SDLC also empowers the development team to prioritize security and to continually integrate new measures into the process as they proceed. 

2. How Does Secure SDLC Work? 

The secure software development life cycle consists of five key phases, where each plays a critical role in enhancing the security of the overall software or application. These phases include:

2.1. Collecting Requirements

Here, key security concerns are gathered from all the stakeholders. For instance, security requirements such as ensuring personal information are only visible to the users. Another would be functional requirements, e.g., ensuring that users can easily verify and edit their data inside the app or software.  

2.2. Design Phase 

The requirements obtained in phase one are now used to blueprint what needs to be done and what needs to be avoided. In other words, functional requirements are translated into functional design concepts and security requirements into security design concerns. Security design is often approached from the lens of what should happen and what shouldn’t happen. This helps exhaust all the security requirements and concerns before moving to the development phase.

2.3. Development Phase 

This is the implementation phase, where the code is written or retrieved from open-source platforms to solve the problem in question. Often, secure coding guidelines are used to eliminate vulnerabilities that would be introduced into the development phase. Some of these guidelines include:

• Checking all the open-source libraries for security vulnerabilities before adopting them. Software Composition Analysis tools are often used.
• Validating all the user inputs prior to processing any data they hold.
• Verifying any data sent back to the user from the database.

2.4. Verification Phase 

At this phase, the software goes through the rigorous testing cycle to check for any security issues that might have sneaked in somewhere along the development stage. Due to the complexity of the code, it’s recommended to use automated testing technologies. These include tools such as CI/CD pipeline deployment for seamless software delivery.  

2.5. Maintenance and Evolution 

Once the verification phase is over and there are no vulnerabilities, the software is ready for release. However, this doesn’t mean that security testing is no longer relevant. In fact, vulnerabilities can slip into the system just after deployment; hence maintenance and evolution should always follow a security-first approach.

During this stage, any vulnerabilities found should be traced to the source to help uncover other underlying issues. At times, this would mean rewriting the application functionality and rethinking the use of open source components in future projects.

3. Popular SDLC Models in the Market 

Over the years, developers have relied on some secure software development lifecycle models to ensure their projects can withstand security threats. Some of the popular models include:

• The Waterfall Model – this is a documentation-intensive model that’s widely accepted and used in the software development niche. Here, the software development process is grouped into different phases. The waterfall model follows a structure where the output of one stage is the input of the following stage. So earlier phases often determine the processes and techniques to be deployed in the next phase.
• The Spiral Model – this is a risk-driven model with four main phases; planning, design, development, and evaluation. The spiral model emphasizes managing risks, so the project passes through these four phases repeatedly in an incremental and spiral manner.
• The Agile Model – this model adopts an iterative approach to development where each incremental part prioritizes testing and troubleshooting. 
• Often, the entire project is grouped into incremental builds designed in iterations, and where the iterations last for one to three weeks.
• Incremental model – here, the requirements are bundled at the start of the project before they are divided into standalone modules, where each module goes through the five phases of secure SDLC. 
• The V-Model – with this model, the SDLC phases are planned in parallel. Execution happens sequentially in a V-shape, with each development phase paired with a testing phase in parallel.   

4. How to Succeed With Secure SDLC Implementation 

To make the most significant impact with your secure SDLC implementation, you should develop a comprehensive strategy with the end results in mind. Some of the critical steps include performing a gap analysis and creating a software security plan by establishing realistic goals with well-defined success metrics. 

But first, you’ll need to educate yourself and your co-workers/employees on the best coding practices and security frameworks. Conducting a thorough security awareness routine at the beginning will help educate all involved on the basics of software security risks and how to handle potential threats before getting started with the implementation process. 

Similarly, use the best security tools and technologies you can get your hands on. Checking for security vulnerabilities in huge texts of code requires more than just quick security scans. You need a comprehensive yet customizable cybersecurity tool with easy-to-understand security reporting metrics and insights. That way, you can successfully run a cybersecurity risk assessment before proceeding to develop the software.

5. Make Security a Top Priority 

Building a successful software that’s secure and scalable is a lot of work. There are numerous security and functionality concerns that go into the equation. But with a competent team and the right set of tools and technologies, it’s possible to transcend all the security obstacles and develop a robust application that meets and exceeds market standards. However, achieving this milestone calls for keen attention to security aspects in every phase of the software development journey.

What is SaaS, and why is it in demand?

Software as a service is a model of distributing and running software in the cloud.

According to a 2020 global forecast by MarketsandMarkets, the cloud computing market is growing at a 17.5% CAGR and is expected to reach $832 billion by 2025.

Most people and businesses today use at least one SaaS product:

• Cloud storage (Google Drive, Dropbox)
• Video call software (Zoom)
• Collaboration software (Slack, Google Workspace, Office 365)
• Creative software (Adobe CC, Figma, Canva)

The SaaS model isn’t as new as it might seem. In fact, its history goes back as far as 1999 — to the launch of the Salesforce CRM. However, the rapid growth of SaaS and its expansion into enterprise-scale businesses is a much newer development brought about by the fast evolution of the internet and cloud computing.

The last twenty years or so have seen almost a hundred unicorn startups in the SaaS category, the best known being Stripe, the credit card processor valued at $95 billion as of March 2021.

Developing SaaS applications bring benefits to both end users and software development companies.

For end users, using SaaS products means:

• Saving money on buying pricey software for each individual machine. SaaS solutions are mostly subscription-based, with a variety of flexible plans for individuals as well as for businesses of any size.
• Easy software installation and updates. Users download SaaS products from the cloud and may not need to actually install them, instead running them in a browser. In addition, SaaS solutions can be updated automatically in the background, without any downtime.
• Saving time on data sharing. Cloud-based software offers instant access to files by syncing them across devices and accounts. This helps collaboration immensely for team members who have access to the file.
• Easy scaling. Users can upgrade or downgrade their plans at any moment without having to call a technical support specialist to remove or install software.
• Zero to no downtime. In contrast to physical servers, cloud servers are able to automatically call on extra copies of an app to distribute the load if the app receives too many requests.
• Data safety. Cloud servers have higher default levels of security compared to physical servers.
• Maintenance support. Individuals and businesses using SaaS products don’t need their own maintenance teams. If anything happens, the software owner provides maintenance and updates.

For software service providers, the SaaS model has the following pros:

• Secure software code. With cloud distribution, end users have no access to the app’s source code, making it impossible for them to steal the code in whole or in part.
• Continuous revenue. SaaS is a subscription-based model, which makes for steady revenue flows as long as customers use the software.
• Possibility to update and upgrade regularly. Cloud servers are able to make app copies. Thanks to this, with app code in the cloud, it’s possible to update the app without downtime for users: a copy of an app’s current version can continue functioning as you update the main version. When the update is finished, the updated version will go live and the copy of the previous version can be deleted.

Types of SaaS solutions

There are two distinct types of SaaS software: traditional software as a service and white-label software.

In short, the difference between traditional and white-label SaaS software is as follows:

• Traditional SaaS software allows the end user to see who owns the software code.

  For example, any business can use Slack for communication, but Slack is the recognized brand. Google owns Google Workspace, Adobe owns its Adobe Creative Cloud software, and Zoom is also a well-known and recognized company.

  The software we built for Shanghai nightlife, Unight, is a traditional SaaS solution that helps venues sell tickets and promote events. Unight is currently the #1 ticket selling platform in Shanghai.

• White-label SaaS software is sold unbranded. Businesses and individuals that buy it can customize the software and apply their own branding with little to no mention of the code owners and can resell the software’s services under their own brand.

  For example, DashClicks, a popular drag-and-drop website builder for digital marketing agencies, is a white-label solution. Websites created with DashClicks have custom domains, making it impossible for end users to know they’re not custom solutions but rather third-party software.

  Website builders, content management systems (CMSs), and hosting solutions are usually white-label SaaS products.

White-label SaaS platforms need to be more customizable than traditional SaaS platforms; therefore, the white-label model is not suitable for all kinds of software.

SaaS tech stack

Almost anything can be a SaaS product these days: CMSs, CRMs, creative software, messengers, audio/video calling apps, and more.

However, certain tech solutions will be necessary for most, if not all, SaaS products.

Content delivery network (CDN)

A CDN is a network of servers — preferably cloud-based if you want to develop SaaS applications — located all over the world. CDNs are used to distribute the load on the network and enhance platform performance. With servers located in all areas where your SaaS platform is available, users will have shorter response times, improving the user experience.

Examples of CDNs are Amazon CloudFront, OVH Cloud, and Cloudflare.

Application programming interfaces (APIs)

APIs are used to implement specific functionality into an application without building it from scratch. For example, when a website offers you to connect or link your social network profile — Facebook, Twitter, LinkedIn — it is made possible by the API of the social network in question.

There are APIs for all kinds of functionality: booking flights, booking a table in a restaurant, streaming, chat functionality, payments, analytics, and much more.

Multi-tenant architecture

A multi-tenant architecture, or multitenancy, is an integral part of any SaaS application. This architecture enables a single server to run multiple applications and allows multiple users to access a single application. At the same time, each “tenant” — whether an app or a user — remains separate from all others, even if tenants share a database.

А мulti-tenant cloud-based SaaS architecture is what makes SaaS platforms scalable.

Load balancer

Whereas a CDN distributes content across servers to deliver it to users faster, load balancing systems distribute incoming requests/traffic across multiple servers to enhance application performance and split the load on databases.

How to make a cloud-based SaaS application

In this section, we’ll show you the ideal SaaS development process as we see it. This process may seem quite complex, but it’s also flexible enough to fit diverse forms of SaaS software.

Step 1. Clarify your idea for yourself

It’s important that you approach developers when you yourself know what you need — to some extent, at least. You might want to do some preliminary research and survey your existing customers and/or potential platform users as to what they need.

• What problem do you want to solve with the platform?
• What analogs to your idea are there on the market, and what are they lacking?
• Is SaaS the best model for your product or service?
• Do you want your platform to be a traditional SaaS product or white-label software?
• What requirements do you have for your software?

Experienced software developers will help you polish your idea, will offer you solutions for your desired functionality, and will estimate the SaaS development cost and timeframe. However, the more information you provide at the start of collaboration, the faster the team will start development.

Step 2. Find developers

Choosing SaaS developers isn’t an issue to be taken lightly. SaaS cloud technology is complex, and SaaS platforms often need to adhere to local and national requirements.

You can choose to hire in-house developers or outsource your product to either a SaaS application development company or freelancers. You’ll also need to consider where you’ll be looking for developers, as software development specialists can be found in all corners of the world. The process of finding specialists might be daunting.

Step 3. Research and validate your idea

The first thing most good development companies will offer is to conduct thorough market research into your idea. To build a product with success in mind, developers need a lot of information, and you’ll need to make some decisions at the initial stages.

• Is your idea valid as it is?
• What alternative solutions exist that solve the same problem?
• What do you offer that’s unique to your product or service?
• What is your platform’s target audience, and what do they need from your SaaS product?
• How should you attract users to your platform?
• How should you measure your platform’s performance?

Research results will help you create a business plan for your platform and allow your team to prioritize features and create road maps for developing your software as a service product.

Step 4. Make prototypes

To make sure you and your team see your SaaS platform the same way, designers will create several prototypes:

• Navigation concepts — the basis for the UX
• Low-fidelity prototypes — the first UI concepts
• High-fidelity prototypes — full-color and sometimes interactive prototypes
  Testing a prototype for each stage of design is important to understand how the platform will work and fine-tune it for the best user experience.

Step 5. Build an MVP

A minimum viable product (MVP) is a product with the minimum functionality that you can release to the public. An MVP serves several purposes:

• It helps you better gauge audience interest
• It allows developers to test the product on real users who might leave genuine feedback
• It helps you prioritize features for future development stages
• It creates opportunities for building brand recognition and obtaining your first loyal users
• In certain cases, an MVP allows you to earn some ROI

The scope of MVP development will depend on the kind of SaaS software you’re building. An MVP usually needs basic features plus your unique value proposition, and its design might be rather simple.

An alternative to an MVP is an MLP — a minimum lovable product. An MLP also has basic functionality plus a unique value proposition, but it usually has a more refined UI/UX design aimed at building recognizability and emotional attachment in users.

Step 6. Launch marketing

Marketing is an important stage in the SaaS software development life cycle. You’ll need to run marketing campaigns as long as your SaaS platform is live (which will hopefully be a long time after the full launch), so it’s critical to use the MVP to figure out the best marketing channels, estimate the possible cost of campaigns, and tweak your marketing actions according to actual data.

Often, it makes sense to launch marketing before the release to feel out demand, build brand recognition, and make users anticipate the release.

Another benefit marketing brings is that it allows business owners to calculate future costs and profits and analyze the product’s performance.

Step 7. Analyze performance

To fine-tune your platform, you’ll need to know if it’s performing as expected or if you need to introduce changes — to functionality, to marketing, or to your business plan and strategy.

One of the most helpful tools to analyze MVP and marketing performance is unit economics.

Unit economics = Customer lifetime value / Customer acquisition cost

Unit economics helps you calculate the value each customer — a user, in the case of a software product like a SaaS app — brings to your business. This allows you to determine whether it’s profitable to use a particular marketing strategy to attract users or you’re throwing away your hard-earned money. It can also help you optimize your prices and forecast profits.

Having analyzed performance and gathered feedback, you’ll have the data you need to make better decisions and continue developing your software as a service product.

How much does it cost to develop a SaaS app?

Given that almost any software can be built as a SaaS platform, making precise estimates for a generic SaaS application is nigh impossible. A highly customizable white-label website builder with numerous templates and built-in tools will have a whole different set of features compared to video conference software like Zoom, for example.

The type of platform you want to create, its feature set, the niche you’re aiming at, the development timeframe, the price tag of your chosen development team — all of this will impact the price of creating your product.

The cost of developing a SaaS platform consists of multiple parts — a lot of research and design prior to actual development, testing, and marketing. And it involves multiple specialists:

• Project manager
• UI/UX designer
• Server-side developer
• Frontend developer for a web-based SaaS platform
• iOS and/or Android developers if it’s a mobile app
• Quality assurance engineers

Based on our experience, the development cost for a traditional (not white-label) web-based SaaS platform will start at about $65,000 for an MVP and will go up as you add and fine-tune features. If you’re going for a platform in the form of a mobile app, expect to hear numbers around $70,000 and up per platform.

There’s also an option of a satellite mobile app for a web platform — a small app with very limited functionality. Fitr, a platform we developed for remote coaches, is a web-based solution, but it has both iOS and Android satellites created solely for fitness clients to comfortably watch programs from their coaches.

Twilio’s Authy app only provides two-step authentication. An app like that might cost about $15,000 or so depending on its purpose and functionality.

Possible pitfalls in SaaS platform development

Cloud-based platforms are well known (and well liked) for their high levels of security by default as well as for having next to zero downtime. However, it’s not that you can do no wrong with a cloud-based product. Cloud-based platforms have their own landmines.

One of those landmines — the biggest one, we think — is paying for cloud servers. Cloud providers charge for every little thing:

• Incoming and outgoing content requests
• The amount of data that goes in and out
• The number of machines you use
• The time these machines are active
• Cloning your servers
• And more

Therefore, setting up cloud servers is no trifling matter. You need experienced developers who will evaluate what you need and what will cost you money but will bring few or no benefits.

The second issue to pay attention to is compliance with regulations and laws in the locations in which you will launch your software. Granted, cloud servers offer great data security. However, local requirements like Europe’s GDPR or California’s Consumer Privacy Act might require you to implement specific measures. It’s important to not just leave everything to the cloud providers.

A reliable and experienced SaaS development company will help you research the topic and implement necessary functionality so you don’t fall into any traps.

We hope this article helps you answer at least some questions about how to develop a SaaS application for web or mobile. Developing a SaaS product is a lucrative business venture, and it will become more and more popular in the future. The time to start is now.

As your trusted software development company, we’ve chosen 08 most popular Software Development Models to show you their core features and how they would benefit your business.

1. Waterfall

The process moves cascaded through all development stages (analysis, design, coding, testing, and deployment). Each step has specific deliverables that are meticulously documented. The following stage cannot begin until the preceding one has been finished completely. As a result, software requirements, for example, cannot be re-evaluated during development. Furthermore, there is no way to examine or try the software until the final development step is completed, resulting in significant project risks and unexpected project outcomes. Testing is frequently rushed, and fixing errors is expensive.

Use Cases:

• Simple small to mid-sized projects with well-defined, repeatable needs (small company website development).
• Projects that require a higher level of control and a more predictable budget and timeframe (e.g., governmental projects).
• Multiple rules and regulations must be followed when working on a project (healthcare projects).
• Projects that make use of a well-known technology stack and tools.

2. V-Model (Validation & Verification Model)

Another linear model is the V-model, which has a testing activity for each level. Such workflow organization ensures high-quality control, making the V-model one of the most costly and time-consuming models. Furthermore, even though problems in requirements specifications, code, and architecture can be spotted early, changes throughout development are still expensive and difficult to implement. All requirements are gathered at the start, just like in the Waterfall instance, and they cannot be modified.

Use Cases:

• Projects where downtime and failures are unacceptably costly (e.g., medical software, aviation fleet management software).

3. Incremental & Iterative Model

The incremental development process is divided into multiple iterations (“Lego-style” modular software design is required!). In each iteration, new software modules are added, with no or minor changes to previously added components. The development process can be carried out in either a sequential or parallel manner. Parallel development speeds up the delivery process, whereas sequential development takes a long time and costs a lot of money.

With iterative development, software evolves and grows with each iteration. The software design remains consistent as each iteration builds on the preceding one.

Because software is given in pieces, there is no need for a detailed specification at the outset of the project, and tiny adjustments to requirements can be made during development. However, conditions cannot be drastically altered; essential requirements, particularly those for system architecture in the event of incremental development, must be established at the outset, as future integration of the provided software elements may become a problem.

Because tiny requirements amendments may be required during the development process, this SDLC approach often involves some client input.

Use Cases:

• Large, mission-critical enterprise programs made out of loosely linked components like microservices or web services.

4. Spiral Model

The Spiral model emphasizes extensive risk analysis. To get the most out of the model, you’ll need to work with people with a good risk assessment history. A typical Spiral iteration lasts about 6 months and includes four key activities: comprehensive planning, risk analysis, prototyping, and review of previously delivered parts. Spiral cycles that are repeated significantly lengthen project timelines.

This is the model in which the consumer is heavily involved. They can participate in the cycle’s exploration and review stages. The customer’s revisions are not acceptable during the development stage.

Use Cases:

• Projects with ambiguous business needs or requirements that are too ambitious or inventive.
• Projects that are enormous and difficult to complete.
• The launch of a new service or product through research and development (R&D).

5. The Rational Unified Process (RUP)

The Rational Unified Process (RUP) is a framework that combines linear and iterative approaches. According to the paradigm, Inception, elaboration, construction, and transition are the four phases of the software development process. Except for Inception, each step is typically completed in numerous cycles. All basic development activities (requirements, design, etc.) are carried out parallel across these four RUP phases, though at varying intensities.

RUP aids in the development of solid and flexible solutions, although it is still slower and less adaptive than a pure Agile group (Scrum, Kanban, XP, etc.). Depending on the project requirements, the level of client interaction, documentation intensity, and iteration length may vary.

Use Cases:

• Large and high-risk projects, particularly use-case-based development and high-quality software development in a short period.

The Agile – Development Models

Of all software engineering models, Agile methodology is used by more than 70% of businesses in their IT projects. Iterative development, intensive communication, and early client feedback are at the heart of Agile in general.

Each Agile iteration usually lasts a few weeks and results in a fully functional software version. This group’s approaches place a greater emphasis on swiftly delivering an active element of the application. They give more attention to software testing activities than thorough software documentation (detailed requirement specification, detailed architecture description). This encourages rapid creation, but it also delays software transfer to the support team and complicates maintenance because it takes longer to detect a problem when there isn’t a clear program description.

Agile emphasizes close collaboration among team members as well as with consumers. After each iteration, stakeholders analyze the development progress and re-evaluate the priority of activities for the next iteration to maximize the return on investment (ROI) and guarantee alignment with user needs and business goals.

As a result, Agile models are known for their frequent releases. They also help deliver applications that better suit customers’ expectations by allowing for continuous software enhancement through simple fixes and changes, quick updates, and feature addition. However, it is impossible to accurately predict the project’s budget, time, and personnel requirements because of a lack of precise planning and a willingness to change.

Use Cases:

• SDLC model for small projects or startup initiative that requires early input from end customers.
• Most mid-sized custom software development projects where business needs cannot be reliably converted into detailed software requirements.
• Large projects can be broken down into small functional components and developed slowly over time.

Which in this article, I will go through some of the most popular Agile Models like Scrum, Extreme Programming, and Kanban which you can find more about down below.

6. Scrum

Scrum is the most widely used Agile methodology. Iterations (‘sprints’) typically last 2-4 weeks and are preceded by comprehensive planning and prior sprint evaluation. After the sprint activities have been defined, no alterations are permitted.

7. Extreme Programming (XP)

A typical iteration in Extreme Programming (XP) lasts 1-2 weeks. If the team hasn’t started working with the appropriate software element yet, the paradigm enables changes to be made even after the iteration has begun. The supply of high-quality software is substantially hampered by such flexibility. To address the issue, XP recommends pair programming, test-driven development and automation, continuous integration (CI), limited releases, and simple software architecture and adhering to code standards.

8. Kanban

The absence of significant iterations is a fundamental differentiating aspect of Kanban. If they are used, they are kept to a minimum (‘daily sprints’). Instead, the focus is on visualizing the plan. The team uses the Kanban Board tool to keep track of all project activities, their quantity, accountable individuals, and progress. Increased transparency aids in a more accurate estimation of the most pressing tasks. Furthermore, because the model lacks a specific planning stage, a new change request can be made at any time.

Customer communication is ongoing; they can review work outcomes at any time, and project team meetings can take place daily. The model is commonly used in software support and evolution projects due to its nature.

9. Other Notable Software Development Models

Just like we have mentioned at the beginning of the article. There are many Software Development Models for you to choose from, and here are some honorable mentions.

9.1. RAD (Rapid Application Development) Model

The RAD Model, short for Rapid Application Development, is a variation of the Incremental Model. Several components are produced simultaneously as if they were smaller, individual projects when this model is implemented. The various elements are then put together to create operational prototypes.

• Advantages: The RAD Model provides for faster development and greater client feedback during the software development process.
• Disadvantages: The RAD Model’s application is limited because the project must be easily modularized into many steps. It also necessitates experienced developers with solid modeling and planning abilities. Issues with final component assembly could lead to unanticipated setbacks and the need to redesign components to fit correctly with the rest.

9.2. Prototype Model

The Prototype Model is based on generating software applications or system software prototypes used to visualize various software components. This model is intended to close the gap between misunderstood needs by allowing for extensive engagement and input with the user.

• Advantages: With a high level of user interaction, the Prototype Model can save time and money.
• Disadvantages: This model may produce misunderstanding among users as to the difference between a prototype and a finished product, and it may add unnecessary development time to prototype development.

Which SDLC Model Is Right For You?

Each of these SDLC Models offers a unique process for the variety of project challenges you will encounter in your career. Finding the right one depends heavily on not just the expected outcome, but the parameters by which the project is executed.

What is software development methodologies?

Software development methodologies are structured processes and techniques used to plan, design, develop, and test software applications. These methodologies provide a framework for managing the lifecycle of a software project, including requirements gathering, coding, testing, and deployment.

What is software process model?

Software process models are standardized frameworks that outline the stages and steps involved in the development of software applications. These models provide a structured approach to software development, ensuring that all essential phases are systematically addressed.

According to Statista, the mobile app market revenue reached a whopping $693 billion in 2021. However, it is only the beginning, as according to Gartner, only 0,01% of mobile applications actually succeed and manage to stay in the game. In this post, we will take a look at the latest Mobile App Development Trends trends, so you can ensure your next app is the one from 100 that turns out to be a great hit.

Learn About The Evolution of Mobile Applications

So, What Happened Last Year (2021)?

It is no exaggeration that people spend more time on mobile devices than on everything else. Statistically, more people own a cell phone than a toothbrush. Mobile devices generate 70% of traffic, and around 75% of emails are being opened on mobile devices. The ease of use and convenience of mobile devices have changed how we behave online and offline. According to Google, 80% of smartphone users are more likely to purchase from companies with mobile apps, and in a world where Covid-19 is still a concern in most parts of the world, people are even more inclined to stay home and buy things from Apps.

Statista goes even further and states that by 2022, App Store user spending will increase to $157 billion (up by 92%). In 2021, the mobile market is set to grow by 385%, and there will be about $7 billion mobile users worldwide.

However, in this dynamic and ever-evolving environment, apps that shined in 2020 may not have the same success factor in 2021. That is why incorporating the latest trends into your mobile app development strategy is vital to a company’s success.

Top Mobile App Development Trends To Watch Out For In 2022

01. 5G Technology Implementation

It is impossible to leave the 5G Technology out of the picture when it comes to the Mobile App Development trend. Despite being around for recent years, 5G has not yet become standard in many areas; however, it will by 2022. Many people are eager to try out the latest 5G connections and experience their seamless connectivity. According to PRNewswire Report, the global market for 5G infrastructure is forecast to increase from $12.9 billion to $115.4 billion between 2021 and 2026.

With the 5G connection lightning capabilities, which promises up to 1,000 times faster speeds than 4G, there are endless possibilities in both software ,and mobile app development industry. Developing apps that rely on technologies requiring faster connections to work correctly, such as AR and VR, will get a much-needed boost as 5G becomes all the more accessible to a larger audience. Moreover, the best part about the 5G network lies in its stability and less latency that enables users to watch for 4k resolutions and play games without any single trace of buffering or glitches.

02. Cloud-Native

Cloud-native apps are written with a cloud-first mindset, eliminating the need for a dedicated hosting server. Everything else is handled by cloud-native solution providers like AWS, Google Cloud, or Azure in the case of those apps. Google Cloud serverless tools allow automated scaling based on website traffic is one of the numerous advantages of cloud-native for developers and companies.

03. AI & Machine Learning

After FaceApp’s unprecedented success, many people were left asking, “What’s next?” That’s when AI delivered something that blew my expectations out of the water. The MyHeritageApp includes a vital photo animate tool that transforms photos into realistic animations. These animations are so good that you get the impression that your loved one is smiling at you. It elicited some spectacular reactions.

It wasn’t the only exciting development in AI last year. Google also added new capabilities to its Maps app that employ AI to improve the user experience. One such feature is Live view, which allows users to navigate large indoor spaces using augmented reality. Google also utilizes AI to offer fewer carbon-intensive routes by optimizing directions for lower fuel usage.

AI and machine learning have been among the most popular mobile app development developments for the past few years. However, these technological breakthroughs have raised the standard for mobile app creation in 2022, and it will be intriguing to watch what the year delivers.

Machine learning is another promising subject where we expect to see groundbreaking developments. When Deep Learning and Machine Learning work together, they can provide valuable data and real-time insights for mobile app development initiatives.

04. Apps for Foldable Devices

Even though foldable devices account for a small portion of the entire smartphone industry, this will alter in the following years. In 2022, 50 million units will be shipped, according to Statista. As a result, it’s time to think about foldable devices as part of your mobile app development strategy. Ensuring that your apps work well on foldable smartphones could potentially be an excellent sign to users, showing you are ahead of the curve.

By simply increasing the screen size of video streaming and gaming apps or using the extra space to offer additional information and controls, foldable devices can reap maximum benefits. As a result, one of the leading mobile app development trends in 2022 will be building apps with the screen in mind.

05. AR & VR

Pokemon Go’s success was fleeting, but it cleared the path for augmented reality in smartphone app development. It demonstrated to the rest of the world that virtual reality could be used to provide users with an immersive experience. Today, if we look around, it’s not hard to see big brands using AR & VR to enhance user experience.

• Ikea uses AR to let users see how furniture will look at their home before buying it.
• L’Oreal has a virtual makeup app that allows users to see how the makeup looks on their faces.
• Microsoft Mesh is a collaboration and communications platform developed by Microsoft with the vision to unify holographic virtual collaboration across multiple devices, be they VR headsets, AR, laptops or smartphones”.
• The newer VR Headset Model from Oculus now works independently without the help of a Modern PC or Laptop.

Apple, Google, and Meta are all bringing AR and VR technologies to the market. In Google Maps, Google added a feature called “Live View,” allowing users to see the direction in real-time on real-world photos.

Another significant technological innovation in the world of AR that we’ve lately seen is LiDAR. Apple dubbed the technology AR at the speed of light, and it debuted since the introduction of the iPad Pro, iPhone 12 Pro, and iPhone Pro 12 Pro max. It’s taken augmented reality to a whole new level. It is now possible to take high-quality photographs in low light using LiDAR.

06. Wearable App Integration

Wearable technology has already taken over the planet. According to Statista, there were 453 million linked wearable devices in 2017 and 929 million by 2022.

In the wearable devices market, many noteworthy developments happened this year. Apple has released WatchOS 8 for the Apple Watch, bringing new features, new watch faces, increased wallet access, and a revised UI.

Even Google revealed a unified wearables platform that combines its Wear operating system with Samsung’s Tizen software platform, resulting in a 30 percent reduction in app startup times. It foreshadows the rise of wearable technology, which will be one of the most important mobile app development trends in 2022.

In other words, app developers and businesses should provide apps that deliver an exceptional digital experience to customers on Smartwatches and wearables in order to obtain a competitive advantage over those who do not. Take advantage of this mobile app development trend to get closer to your target audience by providing a seamless digital experience.

07. Mobile Entertainment & Gaming

Apps for entertainment and games have become ingrained in our culture. Some folks can’t imagine living without them for even a single day.

Netflix has roughly 74 percent active customers, in the United States and Canada, so we can predict how popular mobile entertainment apps are. Furthermore, with over 159.1 million mobile phone gamers, mobile devices are the most popular among gamers, accounting for over 89 percent of all digital gamers in the United States.

Popular Tech Giants like Tencent, Microsoft, and Sony have all recently acquired major gaming studios like Bethesda, Bungie, Activision, and Blizzard as following:

• Publisher Take-Two announced plans to pay US$12.7 billion for Zynga, the developer behind Farmville and Words With Friends, once the biggest titles on Facebook and mobile, respectively. Sony said it would snag Destiny developer (and former Halo developer) Bungie for US$3.6 billion.
• And on the same day the U.S. government announced new plans to rein in runaway digital age consolidation, Microsoft revealed its US$67.8 billion bid to buy gaming titan Activision Blizzard. In a move that dwarfs others, the Xbox maker is swallowing up what was already an absurd concentration of blockbuster titles, representing a sizable chunk of the global gaming market.

The Market for Entertainment and Gaming will surely be an exciting land to watch out for in 2022.

08. Food & Grocery Delivery Apps

As a result of the lockdown due to the Global Pandemic, people began gravitating toward applications that cover food, grocery, and other day-to-day products delivery services. One of the most popular apps in Southeast Asia is the Super app called “Grab” which aims to provide everything you need without stepping foot outside. As a result, these two app categories grew at the quickest rate in 2020 – 21.

According to Statista, sales grew by 80 percent from March to June before declining to 5.7 billion dollars in August. As of October 2021, online grocery deliveries and in-store pickups reached 6.4 billion U.S. dollars.

As we return to normalcy, we may notice a minor slowing in their growth. Food and grocery applications will continue to play an essential role in our lives. People will never stop ordering food online, and 15.5 percent of smartphone users will still use grocery apps.

Whatever the case may be, only time will tell. However, it will be interesting to watch how much road food and grocery delivery applications have progressed by 2022.

09. Mobile Wallets

Mobile wallets have grown in popularity among users, especially as economies worldwide shift to digital. People prefer to use mobile wallets such as Google Pay, Apple Pay, Amazon Pay, and others instead of cash or inputting credit card information for speedier transactions. Because the market has not yet reached saturation, there is still room for future expansion. Future trends in mobile wallets include:

• Audio-based mobile wallets
• Near-field communication (NFC) based payments
• Radio-frequency identification payments

10. Chatbots

Although current chatbots are far from flawless, they gradually make their way into our daily lives. They aid with the ordering process by automating repetitive user interactions such as answering simple inquiries like “is the store open.” Furthermore, more than half of purchasers say they want more self-serving customer service capabilities, and chatbots are an excellent method. According to statistics, 36% of Americans have used a chatbot, and with the popularity of Facebook Messenger, chatbot usage on mobile is increasing even more.

11. Virtual Events Streaming

The Weeknd Virtual Concert Drew Over 2M Viewers

Because individuals could not attend gatherings in person because of the Covid-19 pandemic, virtual events became popular. Even in the post-pandemic era, however, virtual events open up entirely new possibilities, making them less exclusive and more accessible to people from all over the world.

Hopin, one of the most popular online event platforms, allows users to switch rooms, listen to different presenters, and chat with other users. We will most certainly see more of these platforms emerge in 2021.

Another fantastic example would be “Gather,” which is centered around fully customizable spaces. Gather makes spending time with your communities just as easy as in real life, thanks to Gamification.

12. Super Apps

For years, mobile app development businesses have taken the approach of one app, one goal. However, things are changing now. Companies are moving away from single-purpose apps and toward multi-purpose solutions – a new trend within mobile app development “Super App.”

Super Apps are a type of app that is extremely popular in Asia. In the west, though, the trend is catching up. Natural AI, developed by California-based startup Brain Technologies Inc., is one exciting example in the US industry. It aims to revolutionize how people use their phones by addressing various problems with a single app.

Furthermore, you may have noticed how Facebook has evolved beyond its original role as a social networking site. It currently offers provides markets for users to buy and sell goods. Aside from online shopping, Amazon now allows you to pay bills and make payments.

In Western countries, the thirst for super applications isn’t as intense, as consumers prefer to experiment with several options before settling on one. But in the end, though, everyone desires convenience. As a result, super apps are a must mobile app development trend to watch in 2022.

13. Predictive Analytics

For a long time, businesses have used predictive analytics in mobile apps. Netflix utilizes it to make recommendations for movies and TV shows based on the viewing behavior of its subscribers. In addition, Amazon uses predictive analytics to tailor product recommendations.

Predictive analytics will become more prevalent this year. In 2022, we see the trend having a critical role in mobile app development in two areas:

• To Optimize the Development Process: Enterprises can process the data gathered from developers to discover issues before they occur and suggest better alternatives.
• To improve the User Experience: Businesses can use user data to predict users’ actions and personalize their journey.

As a result, we can cut development time in half while maintaining high quality and focusing on producing innovations.

14. Simplifying MCommerce

Mobile commerce, or MCommerce, allows customers to make transactions using their mobile devices. Consumers benefit since they have to open a Mobile App to explore and shop for items and services. Furthermore, consumers are more inclined to use Mobile App Development with digital payment choices in the context of COVID-19, where more minor touch is preferred.

Even though MCommerce has been on the increase in recent years, it is expected to skyrocket in the following years, reaching a value of $22 billion by 2022. The Mobile App Development industry will undoubtedly see an increased focus on designing native apps to serve this rising purchasing trend as the market grows.

Businesses and brands would move a significant portion of their operations on the MCommerce platform to increase sales and improve customer experience. Furthermore, Software Providers can incorporate AI and Machine Learning into the application to deliver targeted offers and discounts to a specific target group, resulting in increased sales. This cutting-edge technology also enables the analysis of a user’s geolocation data and the recommendation of their preferred language option, resulting in increased user convenience.

15. Internet of Things

By the end of 2022 IoT market in the US is expected to exceed $500 billion, and a significant part of this share will be the consumer electronics segment. This technology impacts how people interact with each other and in their own homes by providing opportunities for everyone to engage with appliances and gadgets in real-time. The most prominent IoT impact will be intelligent homes or smart homes to many, since more and more smartphone users control their home devices with apps.

Forecasts say that by 2030 there will be around 50 billion of these IoT devices used worldwide, resulting in a massive web of interconnected devices. What is more, IoT has the potential for data sharing, which will act as a gold mine for app startup and companies.

Currently, the industry takes pride in different software development methodologies. On top of the list, we have two principal methodologies known as DevOps and Agile. While both options are relatively similar, each has its shares of strengths and weaknesses. This section will discuss DevOps vs. Agile and more on the disparities that put them apart.

1. What is DevOps?

The DevOps methodology focuses on collaborating between software developers and other IT professionals in a given company or department. It combines a development team and infrastructure team working closely towards the building, testing, releasing, and maintaining applications. 

DevOps emerged as a response to traditional software development practices back in 2009. At the time, there was a growing demand for faster releases and more reliable software. The DevOps methodology proved to be an efficient way to address these concerns. 

2. What is Agile?

On the other hand, agile is a software development process that emphasizes individuals and interactions over processes and tools. It allows for a flexible response to change by breaking down complex tasks into small increments. This makes it possible to track progress and delivery at all times. 

Introduced in 2001, agile has become one of the most popular software development methodologies in use today. 

3. DevOps vs. Agile: Which one is Better?

Now that we understand each methodology well, it’s time to compare DevOps and Agile based on various parameters.

3.1. Purpose

Agile’s primary purpose revolves around speeding up the development process while ensuring high quality. However, DevOps focuses more on optimizing workflow instead of speeding up production. More specifically, it ensures that software developers have a smooth workflow when working with other professionals inside their department or company. 

3.2. Data Exploration

DevOps has proven to be more effective when it comes to data exploration. However, agile is undoubtedly the winner when it comes to innovation and hacking. In fact, the term “agile” was first coined when developers looked for a way to hack their way through product development.

3.3. Implementation

Agile is better suited for small teams in implementation, while DevOps is ideal for larger groups. After all, Agile relies on close communication and collaboration between team members; it can be challenging to scale up. On the other hand, experts can quickly adapt DevOps to different team sizes without affecting productivity.

3.4. Risk vs. speed

Agile is known for taking more risks to speed up the process. In some cases, this can lead to faulty products. On the other hand, DevOps is more cautious when it comes to risk-taking, but this often leads to slower releases.

3.5. Goal

The goal of agile is to deliver high-quality software promptly. The goal of DevOps is not just limited to meeting deadlines, but also focuses on improving the overall quality of the software. 

3.6. Methodology

Agile relies heavily on sprints, which is quite the opposite of DevOps regarding the actual methodology. Typically, Agile teams work in 2-4 week sprints while reflecting on their progress and making necessary changes. DevOps teams, on the other hand, do not rely on sprints. Instead, they use different tools to manage workflow.

3.7. Automation

Both agile and DevOps are known for focusing on automation. However, DevOps takes this concept further by using tools to manage the software development process.

3.8. Tools

The specific tools used differ between each methodology. For example, agile relies heavily on JIRA, while DevOps uses Jenkins as its primary tool. 

3.9. Time factor

Development times depend highly on the size of the company or department implementing either methodology. Smaller teams can deliver new features faster under either method due to their set deadlines and limited members. 

Bigger groups often have more room for error under either methodology because there is ample time to fix issues before delivery if they arise. 

3.10. Challenges

Both agile and DevOps face challenges when it comes to implementation. Agile teams can struggle with scaling up, while DevOps teams can often be slow to adapt to change.

3.11. Advantages

Agile is popular in the startup world because it requires minimal resources and it’s easy to implement. More prominent companies can also benefit from agile due to its flexibility. Likewise, larger companies with more resources prefer using DevOps.

3.12. Documentation

Agile documentation is typically light, but very detailed. This includes user stories, acceptance criteria, and product demonstrations. On the other hand, DevOps favors less documentation but more code commenting. 

3.13. Stakeholders

Different stakeholders prefer Agile and DevOps for various reasons. Users and customers choose Agile because it allows them to be more involved in product development. Oppositely, developers and managers opt for DevOps because it helps optimize their workflow.

Bottom Line

Ultimately, the final choice boils down to what your company needs. If you are looking for a methodology that prioritizes collaboration and emphasizes working software, Agile is the best option. However, if you give preference to a method that focuses on the entire company and combines both development and infrastructure teams, DevOps is the way to go. Whichever your choice, make sure you research properly to avoid future complications.

Now, it comes to the most critical part – picking a cooperation model. The consequences of choosing the wrong type of contract for your business can be severe, from having no way of changing or replacing features, through ending up with a rushed or unfinished product, to going way over your budget. Therefore you must think carefully about the type of contract that will suit your needs best.

At Savvycom, we offer three different cooperation models:

• Fixed-Price
• Time & Material
• Fixed Budget

If you are wondering which of these cooperation models would be best for you then you’re in the right place. In this article, we will take a look at the three aforementioned contract types and how they work. 

We’ll also mention which types of projects work best with each model in order to guarantee that you will receive your ordered product on time, that it does exactly what you wanted, and without straining your budget (or nerves!).

1. What is the Fixed-Price model?

A Fixed-Price cooperation model works just as it sounds. You pay a lump sum of money to the developing company in exchange for specific results being delivered. It’s one of the most popular cooperation models because a fixed-price contract makes companies feel safe and secure. They have a set budget and thus are guaranteed not to pay anything more than that for the project. If a company needs to strictly plan their budget and expenses, this cooperation model admittedly sounds attractive. 

What’s more, there’s a “set in stone” deadline by which time the client is “guaranteed” to be presented with the ready product. And with a detailed plan including goals and milestones, they can easily track the progress of the project. There’s no need for the client to supervise the project either, so everything sounds clear and predictable. If your project is a small one, with clearly defined features and little risk of things changing, a Fixed-Price model might be what you need. 

2. How does the Fixed-Price model work in practice?

Let’s say you need to order a cake for a parent’s birthday. You asked them what type of cake they would like, and they definitely want a chocolate chip cake. So you call a bakery and order a chocolate chip cake. The bakery then asks how big the cake should be and gives you a price for the chosen size. You pay for the cake that you want and the bakery delivers it on the due date. This is exactly how Fixed-Price cooperation models work – it’s all pretty straightforward when it comes to simple products. However, this type of contract also has several drawbacks.

Imagine a different scenario. You have already ordered a chocolate chip cake, but then your mother calls and says she would prefer a strawberry sponge cake instead. Can it have a different text on the icing too? You call the bakery to change the order, but they refuse. Since they have everything ready for the chocolate chip cake, they can’t change the order. They can only make a second cake, for which you will have to pay extra. They could add the text to the original cake, but that will also cost you extra. 

Project models work in a similar way – if you have a detailed plan and a list of guidelines that you are certain won’t change, a Fixed-Price model is an option to consider. However, Fixed-Price contracts also have a number of flaws. 

3. Fixed-Price contract disadvantages

At some point during your project, you might learn that you won’t need one of the features identified in the contract, but you will need a different one. You also need a newer version of API, and support for the new system. With a Fixed-Price cooperation model, changing the scope of work requires additional procedures and usually the formal flow too. For bigger changes this is justifiable, but for small adjustments the overhead on the formal flow makes the work much more expensive. This is because a task that only takes a developer a few hours has to firstly be discussed with management, some risks assessments have to be added to the estimate, then quality assurance, a code review, and deployment, etc., have to be completed too. That means you will have additional paperwork and will also need another meeting with the development team just to discuss the changes, which might endanger the deadline (and your budget). 

Before choosing a fixed-time contract you need to schedule a meeting with the development team first, during which you will discuss all of the project specifications.  These must be crystal clear to both you and the developer, so you need to plan down to the finest details. You also need to discuss all actions that the development team should take along with possible risks and pitfalls, so bear in mind that you might need several meetings just to have everything specified and accepted. Otherwise, it might be that the final product isn’t exactly what you hoped it would.

There’s also another problem that can occur with fixed-time models. That is the more complicated the project is, the higher the chance that problems will arise. Regardless, the software company is bound by the deadlines and the budget is set in the contract. In a rush to adhere to the schedule, the development team might cut corners and produce a barely usable product.

4. When can you safely choose a Fixed-Price contract?

• It’s a small or medium sized project or an MVP
• You have clearly defined your needs and expectations to the developers – and by clearly we mean you’re able to outline the user’s path step by step and you have some experience in writing user stories
• The project requirements won’t change
• You have no need or time to have meeting sessions with the development team 
• There’s little risk of development problems happening so you can hand over all control to the developers
• You have a limited budget for the project, or you need to get the project budget approved first
• You are not interested in the time taken but in deliverables, which means that sometimes the project is finished faster but you are still charged the estimated amount

5. What is the Time & Material model?

The Time and Material model works on a completely different principle than the Fixed-Price model. In Time and Material, rather than pay a fixed sum right at the start, you pay the software team for the hours of work needed to finish a given project and for all of the materials they use. This type of cooperation model is useful when you cannot accurately estimate how much the project will cost or how long it will take to complete, so there’s no set price or rigid deadlines for the team.

6. What are the biggest advantages of T&M contracts?

The most significant advantage of a T&M cooperation model over Fixed-Price models is that you retain much more control over the project. You can also change elements of the project when needed. If you don’t yet have a detailed vision of the product as a whole, the Time and Material model is also a great pick. 

With this type of contract, you can decide in which direction the project should go as it progresses. If there’s a sudden need to rework some parts of the project then simply add new features, or if an unexpected issue arises then the T&M model allows you to adjust the work schedule as required. The development team can also start working straight away, even if they (and perhaps you) don’t know all of the project details yet. Those can be discussed in later meeting sessions. 

How does it work in practice? The whole project is divided into smaller tasks that each have an estimated time, workforce, and cost. When you agree with the price quoted, the development team can start immediately. During the project, there will be several meetings with the team during which you can add suggestions and ask for modifications. This way, at the end of the project, you will receive a high-quality product that exactly fits your needs. 

7. Things you should consider before opting for a T&M contract

It all sounds great, but the main thing that might worry you here is the budget. How can you control the amount of money spent on a project without a defined price set in the contract? And if you are paying the team for the hours they spend on your project, won’t the final cost turn out to be much higher than the initial budget? 

Controlling the budget of a Time and Material cooperation model is actually much easier than you might think. Each task in the project comes with an approximate cost, so you can estimate the project cost in advance. To make controlling the budget more manageable, you will also be sent regular detailed reports about how much time the development team has been working on a given task, how many people were involved, what materials were purchased, and any other extra costs.

Controlling the progress of the project might be a bigger problem. A Fixed-Price model allows you to leave all of the work to the developers until the product is ready.

Time and Material, on the other hand, requires constant supervision of task progress, materials used, and budget spent, as well as frequent meetings with the development team. Monitoring is especially important since there’s no definite deadline in the contract, and you don’t want a six month project to turn into a year. You should also keep in mind that, unless there’s some bonus in the contract to be paid if the development team finishes ahead of schedule, there’s little incentive for them to finish the project early.  

We work on because most of the clients we are working with have problems in stating their all requirements upfront. 

8. When should you choose a T&M contract?

• It’s a complicated or long-term project
• You don’t know the full scope of the product, only a basic description
• The requirements or needs are likely to change
• You want to have full control over product creation and development
• You need maximum flexibility
• You want to pay for spent time only, as compared to a Fixed-Price model it is the most cost-effective solution for long-term projects with changing scopes

9. Fixed Budget/T&M with cap

If you are still worried about exceeding the budget for the project, there’s a third cooperation model we can use called Time and Material with a cap. This is the same as a regular T&M contract but with one change, which is that the contract specifies an upper limit of cost that you will not have to pay more than. If the cost of the project rises above the threshold, the development company will cover the additional outlay. This way, you can have all the benefits of a Time and Material contract without the risk of the project cost being far higher than expected.

Fixed Budget/T&M with cap is very well suited for companies that have a very dynamic change of priorities, but still need to keep control over their budget. The key difference between typical Time and Material and T&M with a cap is that Savvycom takes care of budget control. Savvycom monitors the costs, reports how far we are with the progress, and identifies risks if the scope of the project is not delivered in line with the provided plan. The key difference with the Fixed-Price model is the fact that Savvycom allows clients to introduce changes to the scope of work dynamically and recalculates the available budget accordingly. If the budget needs to change, Savvycom reports this as soon as possible and reacts on-the-fly to the client’s decisions. This model is the most collaborative and provides the greatest value to the client.

Fixed Budget projects have the same benefits as the Time & Material model, plus:

• our Project Manager takes care of budget control 
• they are also in charge of managing the work-load to keep all members focused and at full speed as much as possible

Conclusion

Both cooperation model types have their advantages and drawbacks, so each one works best for different types of projects. If you have a small project with detailed guidelines or when you are sure that no changes will be needed, a Fixed-Price contract is a good option.  You will know what the cost of the project will be in advance, and  your product will be ready on the due date. However, you need to be prepared for unexpected issues or errors arising that might either postpone the deadline, result in additional costs or leave you with an unfinished product.

For larger or long-term projects, a Time and Material contract would be a better choice. It offers flexibility and control of the product creation, while also helping you to stay within budget. There’s no precise final price or deadline date though, so you need to keep an eye on both the costs and project progress. T&M also relies on frequent contact between your team and the developers, so you’ll be spending a lot of time in meetings. 

Savvycom Software is a development company that helps businesses of all sizes tackle their development challenges. Since 2009, we’ve been providing our clients with value for money, time, and effort through web & app development, UI/UX design, and IT outsourcing. Our vast experience in the industry demonstrates our commitment to crafting some of the best digital products in the world.

In our mission to lead our partners toward digital product excellence, we’ve been named as a top provider of development services during Clutch’s 2021 Leader Awards! as well as being featured on Clutch’s Top 05 of the top B2B Firms in Vietnam.

“We are honored to once again be featured on Clutch as one of the top firms in Vietnam. To us, this award is probably the best achievement that any company could have received. We will uphold that status and continue providing our clients with the best IT services.” — ThanhVan Dang, CEO & Founder at Savvycom Software

For the uninitiated, Clutch is a B2B ratings and reviews platform based in Washington, DC. They evaluate technology service and solutions companies based on the quality of work, thought leadership, and client reviews. 

A rapidly expanding startup, Clutch has become the go-to resource in the agency space. Their review process is reliable and transparent, and we’re grateful to those of our clients who have taken the time to provide feedback.

We’re incredibly grateful to our clients for their unwavering support. We wouldn’t be where we are now if it weren’t for you. Check out our overall rating of 4.9 stars, a near-perfect score across eight reviews!

A throw back to Savvycom’s great transition last year as a stepping stone for 2021

1. Onshore, Nearshore, and Offshore Development: What Do the Terms Each Mean?

Generally speaking, outsourcing falls into three categories: onshore, nearshore, and offshore. Here’s a breakdown of what each of these software development services entails.

1.1. Onshore Development

Onshore development is a form of outsourcing where both partners are working in the same country. A business based in Chicago, for example, might outsource their software development needs to a provider based in San Francisco. Through this model, partners can communicate in real-time and even meet in person should the project demand it.

1.2. Nearshore Development

Nearshore development means that a business outsources software development to a nearby country or one with a similar time zone. For instance, a company in the United States might use a provider in Latin American countries like Argentina or Mexico, while a company in Germany could turn to a provider in Ukraine. One benefit is that nearshore partners tend to be culturally compatible. They’re also typically cheaper than onshore providers.

1.3. Offshore Development

In the case of offshore development, partners are geographically distant — in some cases across the world from one another. For instance, a business in the United States might work with a team in India or China. In general, this is typically the least costly outsourcing model, and it’s probably the most well-known outsourcing.

2. Best Practices for Offshore Development

2.1. Establish Goals

Businesses must outline their objectives for the partnership, identifying what they hope to achieve from the arrangement. These might include the requirements for a specific project, a deadline for completion, special features the software should have, and measures of quality.

2.2. Check References

Review your partners’ portfolios and reviews on platforms like Clutch, Glassdoor, and social media. You may also request referrals from previous clients. Organizations should pay attention to expertise in their industry and niche and level of experience.

2.3. Establish Collaboration

Use communication tools like Slack, WhatsApp, and Skype. It’s best practice to define the frequency of check-ins and times that they’ll take place upfront. Organizations may also use project management tools such as Jira and Monday to track progress.

2.4. Take Security Measures

To prevent security and data breaches, organizations must take strides to protect their information. These steps might include giving third-party vendors access to only the data they absolutely need, as well as having the partner sign a non-disclosure agreement.

3. Why Businesses Choose Offshore Software Outsourcing

3.1. Specialization and Expertise

If a business is in need of a developer with a particular skill set, it can be difficult to find a nearby provider. Using an offshore model gives the business access to talent all over the world, including providers located in distant countries. Some foreign countries have emerged as high-quality providers, including India, Argentina, Mexico, China, the Philippines, Ukraine and especially Vietnam with unbeatable cost.

Many offshore outsourcing companies take special measures to ensure the quality of their software development.

3.2. Cost-Effectiveness

Offshore software development is typically the cheapest outsourcing model when a business is based on North America or Western Europe. Onshore is generally the most expensive option in this case, and nearshore often falls somewhere in between the two. This is because offshore providers are typically in countries with developing economies.

3.3. Faster Time to Market

A dedicated team will generally bring a project to completion in a shorter period of time than an in-house team might because they will not be working with additional tasks and business priorities. Advantages to this include staying ahead of the competition and ensuring that software is timely.

3.4. Risk Mitigation

In an offshore partnership, both the customer and the provider assume the burden of any risks associated with the project. Both parties have a vested interest in the performance of the end result, the money it earns, and its overall quality. This often means faster completion times and higher-quality products.

Interested in working with an offshore software development partner? Providers like Savvycom offer a number of benefits, including team integration, lower prices, faster turnaround, and extensive specialization and expertise — all while alleviating your burden and allowing you to focus on core business functions.

4. How to Choose an Offshore Software Outsourcing Company?

4.1. Quality Experience

Always check your potential IT partner’s references, previous client lists, and completed projects. This information will give you some insight into the performance, workflow style, and quality of the IT company’s software products.

4.2. Great communication skills and fluent English

Language difference is one of the obstacles when offshore so smooth communication and workflow is the most important step. Your Outsourcing Partner must be fully fluent in English or the language of your choice. In addition, their workflow should match your workflow throughout the development cycle.

4.3. Standardized Security Protocols

As technology advances, cybersecurity is more important than ever. Make sure that the IT company you choose has up-to-date security protocols to keep all data and software products safe.

4.4. Top Talent Software Engineers

Outsourcing development abroad gives you access to world-class IT talent. The mission of an outsourcing company is to bring together the best software developers from the region and use their talents to build the best possible product for you.

4.5. Full Range of Services

The best outsourcing companies that specialize in many areas will be able to handle your project from a holistic and highly experienced approach.