Sep 05

Over the past few years, I have managed several SaaS development projects. For some of these projects, the team composition worked very well; for others, not so well. After reading the book entitled “Getting Real” by 37 Signals, I am convinced that a “less is more” approach is best. So, without further adieu, here is what I would consider the best team composition for not only a SaaS project but for any web application development project.

GenericPerson The Less is More SaaS Development Team

The Product Manager is primarily responsible for drafting the requirements. Ideally, the Product Manager is a “visual thinker” and graphic designer who can illustrate the requirements and build out all of the design elements and graphics (for more information about illustrating requirements click here). Developers should be able to build directly from the requirements. Requirements must be “signed off” by the Product Owner before development commences. The Product Manager also assists with the launch of the product, including training, user guides, marketing, etc.

GenericPerson The Less is More SaaS Development Team

The Product Owner is the business person ultimately responsible for the product. She works closely with the Product Manager to ensure that the product is being designed correctly and that her vision is being realized. The Product Owner has the final say in design decisions and reviews and approves each completed feature.

GenericPerson The Less is More SaaS Development TeamThe Development Manager manages the development team and ensures that each developer is productive and that the team hits its deadlines. In addition, the Development Manager is responsible for architecture, database design, resource allocation, task management, coding standards, release management, application configuration, IT, and quality control.

group The Less is More SaaS Development TeamThe Development Team consists of Developers and Testers. They are responsible for coding the application and keeping it bug free through continuous testing. Ideally, all of the design is done by the Product Manager but there may be a need to also hire a Designer.

That’s it! No need for expensive specialists such as architects, systems analysts, DBAs, scrum masters, database designers, release managers, etc. Instead I recommend hiring generalists as managers who can wear multiple hats and only hire specialists for the actual coding.

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Jul 19

SaaS Pricing2 300x225 SaaS Pricing ModelOne of the most compelling reasons to offer a Software-as-a-Service (SaaS) application is the flexibility in pricing. Since SaaS customers essentially lease their applications from their vendors as opposed to buying them, vendors can get creative with their pricing models. The primary consideration for the vendors is that the pricing model should be recurring in nature. It makes no sense to build a SaaS application and then charge annual licensing fees like legacy client/server software. It is my opinion that in a mid-sized business apps market, SaaS vendors should target the $500 – $1,500 per-customer per-month price range to make decent profits.

Here are some pricing model ideas:

  • Monthly flat “service & hosting” fee – A flat monthly fee could be charged. Flat fees can be adjusted up or down based on the number of users.
  • Usage based – A fee could be charged based on some usage criteria. For example, the vendor could track each record that is created within the system by a customer and then bill that customer based on total records created during a month.
  • Feature based – With an “a-la-carte” system of adding and removing features/modules, vendors could assign a cost value to each module. Then, they could use determine how much to charge per-module, per-month.
  • Free - Vendors can always take the free approach and make money through advertising. A good example of this model is mint.com.

These are the SaaS pricing models that I am most familiar with but I welcome additional ideas. Please feel free to submit comments!

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Jun 11

matt A Practical Perspective on SaaSHi, I’m Matt. I am a big fan of the SaaS (Software-as-a-Service) delivery model for Internet-based applications. I have spent the past 6 years designing and building web-based (SaaS) applications for various companies and I have gained some practical knowledge that I would like to share.  So, I decided to start this blog.

My vision for SaaSFans.com is that it will be a source of “best practices” and practical knowledge on designing, building, and deploying SaaS applications. We will rarely discuss the benefits and drawbacks of SaaS (there are plenty of other blogs for those discussions). Instead, we assume that you have already embraced the SaaS model and just need some help to get started on actually turning your vision into reality.

Other than the information provided here and any feedback that I can provide, if you would like some help actually building your SaaS application my company Surge (www.surgeforward.com) can help.

So, to all you SaaS fans out there, let’s share our ideas and turn our SaaS visions into reality. My plan is to post tasty morsels of SaaS knowledge at least every week so check back frequently.

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