How much does it cost to build a SaaS application on AWS?

The SaaS industry has grown to a level where its use cases and benefits do not need any introduction. Between the application getting ready-to-use instantaneously to high scalability and a speedier proof-of-concept testing, cloud-based SaaS applications have become a part of a market size that is expected to be worth $195.20 billion in 2023.

The fact that you are here highlights that you are not a stranger to these benefits and the prospective market size. However, before you get down to the business model creation stage, it is necessary to get insights into the cost to build a cloud-based SaaS application.

On a high level, this is what the cost of SaaS application on AWS cloud looks like:

We suggest looking at this table of cost of SaaS AWS app development with an open mind as the actual estimate can be very different from what these highlight, based on your exact requirements.

Before we illustrate this better with the factors that would impact the SaaS application on AWS development cost, let us look into the reason behind why to choose AWS for your cloud based SaaS app development.

Why choose AWS to build a cloud-based SaaS application?

Building a SaaS application from scratch can be very expensive and full of complications. What helps is basing the development project on an already established cloud provider. But out of so many options available in the market, why go for AWS? Let’s look at the reasons here.

Calculation of total cost of ownership

AWS comes with a calculator that helps the SaaS mobile app development experts estimate cost for service configurations based on the AWS services you will need, details of app usage, and the estimations of cost per service and service group.

Running proof-of-concept

Testing a proof-of-concept before the launch of a feature or app upgrade without losing on resources is an absolute need of startups. AWS provides a range of services and functionalities which can be integrated to develop new solutions and solve technical challenges from scratch. Moreover, when you build a SaaS application on AWS, you get a range of architectures which can be modified according to a project with minimal changes.

Managing data protection regulations

Ensuring compliances can be challenging for startup owners, especially when it comes to data protection across geographical boundaries. When you choose AWS cloud based SaaS application development, dealing with these global laws and privacy becomes easier as they are built to manage these compliances.

Global market reach

AWS Regions promises a global coverage of cloud computing services. You can easily run the application globally without looking for data centers in different geographical locations. Through this technology, when you build a SaaS application on AWS, you can place the infrastructure closer to the target audience, thus lowering latency and bettering the app response time.

Now that we have looked into the benefits of choosing AWS for SaaS mobile app development, let us get down to the development process which plays a role in defining the cost range.

Also Read: AWS vs Azure vs Google Cloud – Which cloud platform should you choose for your enterprise?

Cost of custom SaaS app development on AWS based on the development stages

One of the quickest ways to understand the cost of SaaS application on AWS cloud would be to know the stage-wise efforts. However, before we dive into them, it is necessary to understand how different development models would impact the range.

Partnering with an outsource SaaS app development agency will typically be the best bet for a cost-effective and quality intact end-to-end development, since freelancers tend to work on multiple projects simultaneously, thus becoming a risky choice.

With that addressed, let us get down to the different stages of AWS cloud based SaaS app development and their cost estimates.

Planning

This is the stage where the project specifications and requirements are established. Here, you will need to sit with the team that will create a SaaS application on AWS and plan out the scope of the project, security protocols, and the pricing models.

The outcome of this stage is usually this –

• Instructions for specific purposes
• Complete strategy for growth and scalability
• Method for building a MVP
• Wireframes

Cost wise, this stage can cost anywhere between $100 to $1,000 and can span across a few days to eight weeks.

MVP development

Before you get into full-fledged efforts to develop a SaaS application on AWS, it is critical to build an MVP and test the waters with basic functionalities and minimal design systems. While it is not a final product, MVPs tend to help with garnering attention from the right people and getting your product the eyes, feedback it needs before more efforts are invested in it.

The time and money you can expect to invest in this stage can range from one week to four months and over $5,000 to $100,000 depending on the features and technology you deem must-have.

[Check complete details on MVP development costs]

Here are some features that we see critical to the success of your SaaS application development on AWS.

UI/UX design

With the feedback now coming in post-MVP launch, it is time to start working on the user interface and experience design. The idea here is to build your product in a way that it meets the end users requirements perfectly and has all the features, functionalities they would require to manage their processes, clearly defined and placed.

Typically, this part to build a SaaS application on AWS takes somewhere around 2 months and can cost $50,000 to $100,000.

Development

The efforts to develop a SaaS application on AWS can be divided into two segments – SaaS solutions that you wish to offer and backend. Here’s what it looks like on cost front –

Publication and upkeep

When you create a SaaS application on AWS, you will have to keep app publication and maintenance in consideration to build a cost estimate. Every new code version will require an extensive scrutiny from developers who will look for roadblocks around scalability, integration, performance, and security.

This ongoing effort can cost anywhere between $20 to $200 per hour.

*Disclaimer* The process to build a cloud-based SaaS application mentioned here is in a situation where you are creating the SaaS application and integrating it with AWS Marketplace. Amazon gives you another option where you can create your SaaS app from scratch on the AWS platform. Here’s the step-by-step guide for that – AWS Serverless SaaS Workshop.

Now that you have looked into the scratch development process and the cost of SaaS software development, the choice of whether to take this route or partner with an AWS expert to create the SaaS solution on the cloud platform, lies with you. Irrespective of the route you take, the next logical step would be to know how to earn back the amount you have invested in SaaS app development services.

Let us look into that as we conclude the article.

How to earn back the monetary investment of SaaS application on AWS development cost

There are many ways you can get the invested cost of SaaS software development back.

• Free services with ad – Here your app will reach more than 1 million active users of AWS, which they will be able to access free of cost but will have to view some in-app advertisements.
• Freemium model – In this model, you can offer a basic set of features for free and then provide an upgraded set of features on a paid version.
• Subscription – In this model, the users will pay monthly/ annual subscription cost to access your platform.
• One-off purchase – Here, the users can buy your application for a lifetime access.

With this we have looked into the different aspects of SaaS application on AWS development cost when you build the product from scratch. Now irrespective of which model you choose to go with, you will need the help of a company that specializes in AWS-based cloud consulting services to either build the app from scratch or launch it on AWS platform.

This is where Appinventiv comes in. In our role as SaaS software development company, we have helped a number of entrepreneurs both build a SaaS product from scratch and integrate an existing offering in their business application.

The process we follow for cloud based SaaS app development typically starts from gathering requirements to building an infrastructure that would support scalability and robustness, following which our team undertakes the constant task of app maintenance and upkeep. At the back of this process, we have helped over 80+ startups and enterprises initiate their cloud journey with the commitment to succeed.

Witness the benefits of Appinventiv partnership yourself. Get in touch with our cloud experts today.

FAQs around SaaS application on AWS development cost

Q. How to build a cloud-based SaaS application?

A. The process to develop a SaaS application on AWS usually starts with establishing the project requirements, creating an MVP for AWS audience, designing the infrastructure followed by backend, frontend development and testing the application before full-fledged launch.

Q. How much does it cost to build a cloud based SaaS application?

A. The SaaS application on AWS development cost can vary anywhere between  $50,000-$150,000 on an MVP level. The more features, tech integrations you add, the higher the range will go.

Q. How long does it take to build a cloud-based SaaS application?

A. The time it requires to build a SaaS application on AWS can be anywhere between four months to a year and half. It will all depend on the functionalities, design systems, and services you introduce in the application.

THE AUTHOR

Sudeep Srivastava

Co-Founder and Director