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What is The Cost of Developing a SaaS Application on AWS?

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Helen Ruth
What is The Cost of Developing a SaaS Application on AWS?

Software as a Service (SaaS) has become an increasingly popular delivery model for software apps. It allows users to access applications over the internet without downloading or installing any software on their devices. 


SaaS application development is typically hosted and managed by a third-party provider, making it more accessible and cost-effective than traditional software applications.


Amazon Web Services (AWS) is a popular cloud hosting platform for SaaS providers. AWS offers a range of services that can be used to build and deploy SaaS applications, including compute, storage, and database services. 


But what is the cost to develop a SaaS application on AWS? 


Let's take a closer look.


Factors That Impact the SaaS App Development Cost on AWS

Cost of SaaS app development on AWS based on Complexity

SaaS platform complexity refers to the collection of functionalities, user roles, and their interrelationships in your application.


They could also be the developer's difficulty when creating the SaaS application. For easier comprehension, we can divide them into four categories: micro, basic, average, and complex. 


A SaaS app development cost will increase with increasing complexity because more time will be required to build it.


The Complexity of SaaS App            Approximate Cost


Micro SaaS Solution                          $10,000 to $15,000

Basic SaaS Solution                          $30,000 to $35000

Average SaaS Solution                     $55,000 to $60,000

Complex SaaS Solution                     $140,000 to $150,000


Cost to build SaaS app on AWS based on Type of Product

The kind of software is a significant aspect that affects SaaS solution costs. Specific SaaS projects are quite challenging to develop, primarily because of the number of new features that should be built into them and the sensitivity of the data being handled.


Type of SaaS Product      Avg. Cost of MVP         Example

ERP                                     $120,000           NetSuite

Project management           $70,000                        Confluence

Accounting                           $80,000                        Quickbooks

CRM                                     $60,000                        Freshworks

Visual website builder           $150,000                      Weblium

MarTech                                $100,000                      Hubspot

Email marketing                    $70,000                        Mailchimp


Cost of developing a SaaS application on AWS based on the Type of Team

Let's examine how choosing a particular development team may impact the cost of SaaS development.


For the sake of illustration, you are developing a software-as-a-service platform of average Complexity. You can hire AWS developers to build a SaaS app efficiently. 


Type of Team                                        Average cost

In-house, the US                                   $140,000

Local development company               $180,000

Freelance                                            $50,000

Outsource agency                               $80,000


SaaS app development cost on AWS based on Team Location

The cost of developing Software-as-a-Service is significantly influenced by the country where your team is based.


Country                     Approximate Costs

The USA                   $180,000 to $250,000

The UK           $150,000 to $200,000

Australia           $120,000 to $160,000

Western Europe        $100,000 to $150,000

Eastern Europe         $60,000 to $100,000

South Asia           $45,000 to $100,000


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

  • Planning – $100 to $1,000
  • MVP development- $5,000 to $100,000
  • UI/UX design – $50,000 to $100,000
  • Development- $30,000 to $250,000
  • Maintenance and Support- $20 to $200 per hour


Conclusion 

The cost of developing a SaaS application on AWS can vary widely depending on several factors, including the complexity of the application, the number of users, and the level of support required. However, carefully planning and optimizing your application and AWS usage can reduce costs and ensure your SaaS application is accessible and cost-effective for your users. Moreover, you can contact a reliable AWS cloud hosting company for a free consultation.

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