Cloud-based app development: Benefits, development process and costs explained

Sudeep Srivastava March 11, 2024
How to develop a cloud application

Cloud computing is a rage in the present business landscape. 

Several industrial reports mention that with the expansion of business mobile applications, storage capacity and performance are significant issues for over 70% of the digital workspaces. The best possible approach to deal with such challenges is Cloud computing

Cloud-based application development solutions make data collecting more convenient for businesses. On top of that, security and management are simplified to a greater extent. Cloud app development allows modern businesses and enterprises to create productivity-based applications to enhance the customer experience as well as revenue. Not only this, but Cloud software development solutions also allow businesses to invest in low-code app development, which is again a time- and cost-effective process.

Not to forget the multi-experience cloud solutions bring to the business. Multi experience is the future of app development especially when deployed with technologies such as Cloud computing, IoT (Internet of Things), AI/ML (Artificial intelligence/ Machine Learning). Cloud computing offers conversational and seamless experience with mobile apps. 

All the aforementioned benefits are the reasons behind the growing popularity of cloud applications among organizations and the projected growth of the global cloud-based app market – $133.6 billion in 2020 to $168.6 billion by 2025

global-cloud-based app market

This growth and popularity of cloud applications raise a lot of questions for businesses and enterprises, particularly regarding how to develop cloud-based apps the right way. 

Let’s find those answers today! In this article, we will talk about various cloud-based application solutions for your business, how these solutions possibly benefit you, and how you can create a cloud application the right way. 

Let’s dig in with the basics. 

What is a cloud-based application?

A cloud-based app is an internet run program with components that store and drive online with some or all processes executed on the cloud. To understand this in detail, take it this way, in cloud-based applications, a user interacts through a web or mobile browser. The data processing here takes place on the remote server bae and is managed with the help of an API. A user’s device serves only as an input device in the cloud app and does not interfere with the major process. 

A cloud-based app is different from a web-based application. In order to understand its peculiarities, it’s important to take a look at a few characteristics that define cloud app development. 

Cloud App development

Characteristics of a cloud-based application

  • In cloud application development, the app’s data is stored in the cloud infrastructure and could be partly cached on a user’s device. This means there are minimum requirements for devices to run the application. 
  • The cloud infrastructure can temporarily store information on a user’s device to allow the user to access it while offline. Once the user is online again, the cloud app is updated and uploads the generated data from offline to the cloud storage location. 
  • You can set up backup schedules as well data optimization, compression and encryption as a user in any way you want. 
  • A cloud application can be accessed with the help of any internet-connected device, including desktop, tablet, and mobile. This helps the user to get independent of browser capacities. 
  • Cloud-based applications also offer access to third-party cloud computing services with API integration and are more easily customized than a web app. 

Now that we have seen what properties define a cloud-based application, we can move on to what kind of cloud solutions are available for digital businesses and enterprises. 

[Also Read: Cloud Data Migration – Adopting the Right Strategy and Best Practices]

Types of Cloud-based solutions available for enterprises 

Cloud computing technologies consist of various services and resources such as databases, data servers, storage etc., that are run by third parties. The third-party authorizes the computer reserves and its infrastructure on a free or paid basis. In short, you can avail the services, resources, and space without worrying about infrastructure maintenance. 

cloud deployment

There are four common types of cloud deployment available for businesses: 

1. Private cloud – This functions as a private web system with a secure space for applications, web and data. Private cloud service is utilized by one company without any public access. 

2. Public cloud – Data in the public cloud resource is only accessible through an authorized device. Public clouds usually offer optimal price and flexibility with data processing. 

3. Hybrid cloud – Hybrid for cloud app development is considered both public and private. Here you can distribute the data among on-device services and third-party apps along with additional variants for deployment and optimization. 

4. Community cloud – Community cloud deployment is similar to private cloud, except here, the data sharing is between two (multiple) organizations. For instance, the government of a country has various departments internally that need the same infrastructure and resources, and that’s where community cloud comes to use. 

You can leverage the above cloud deployment solutions for various application services. 

Just like the deployment services, there are various cloud application development solutions available for enterprises. Three major cloud-based app development solutions are : 

cloud application development solutions

Software as a Service (SaaS) 

SaaS stands for creating cloud applications using web browsers and mobile apps. SasS lets customers access the applications online without actually having to configure or install them on the device. 

SaaS cloud application development can be used for:

  • Managing CRM (Customer relationship management) systems and databases of clients
  • Automating services and products sign-up
  • Providing auditing features and email tools etc. 
  • Sharing agendas and calendars across the entire organization to plan future events 
  • Managing documents for file sharing and collaboration. 

Few of the tech giants invested in SaaS cloud app development are AWS, Salesforce, Google Apps, Zendesk etc. 

[Also Read: Copy of How much does it cost to build a SaaS application on AWS]

Platform as a Service (PaaS)

PaaS allows you to rent every resource and service you need to develop an application relying on cloud providers for infrastructure, operating systems and development tools. This means you will be taking an entire cloud application platform (software and hardware) as a service for developing cloud applications. 

PaaS cloud applications development can be used for 

  • Operating systems
  • Database running infrastructure 
  • DEvelopment tools 
  • Middleware 

Some of the common PaaS cloud platforms are Openshift, Windows Azure and Heroku.

Infrastructure as a Service (IaaS) 

In IaaS cloud services, your cloud provider manages your entire business infrastructure, including network, server, storage and visualization. This infrastructure can be managed by a private or public cloud. Moreover, along with controlling the resources, IaaS cloud services offer tons of additional services for cloud based app development like:

  • Detailed invoice 
  • Tracking
  • Resiliency tools (backup recovery and replication) 
  • Log access
  • Security instruments ( PCI-DSS compliance, data encryption protocols) 
  • Load balancing 
  • Clustering 

To utilize IaaS cloud services, you can use an admin panel or API for better directions. Furthermore, you can also manage your own programs and operating systems while your cloud service provider manages resources for cloud app development. 

[Also Read: How FinOps helps in cloud cost optimization ]

Some of the popular cloud application development examples that used the above-mentioned models and services are Zoom, PayPal, Slack etc.

Explore our cloud services

If you are still hesitant about committing to cloud solutions, our next section familiarizes you with cloud app development benefits. 

Let’s see how developing cloud applications can benefit your business app model in the long run.

[Also Read: Cloud gaming – The next technology frontier in the video gaming ecosystem]

Benefits of using Cloud-based applications 

Cloud application development is profitable to every enterprise and business since most of the data storage and processing issues are taken care of by remote servers. Along with that, cloud software development or cloud application development has a range of undeniable advantages that are mentioned briefly here. 

Benefits of using Cloud-based applications


Cloud services only charge for necessary cloud space and feature sets required for your application development model. This pay-as-you-go system applies to every cloud deployment service that factors in lower cost and higher results.


A cloud host’s full-time job is to monitor data security which is significantly more efficient than a conventional in house system. Cloud software development also makes it easier to comply with government security standards. On top of that, the cloud gives an automated response to updates and data recoveries. 

Bonus Read- Top 10 Cloud Security Risks in 2023 & How To Tackle Them


Developing cloud applications offers more flexibility overall against hosting on a local server. If you need extra bandwidth, cloud services can meet that demand instantly rather than going on a long update to enhance infrastructure. 

[Also Read: An Entrepreneur’s Guide to Custom Cloud Payroll Software Development]

Competitive edge and sustainability

Cloud services integrated with AI technology such as chatbots and assistants also offer a better customer experience to the audience. For instance, Appinventiv developed an AI-based analytics platform on the cloud for a leading global bank to enhance its CRM system and customer retention.

With the help of the developed conversational AI on the cloud, the bank was able to handle 50% of customer requests, resulting in reduced manpower cost by 20%. This is a huge competitive advantage for modern enterprises along with long term sustainability goals.

Mobility and insight 

Through cloud application platforms, you can access information across any device, gadget, team, company etc., to remain updated. It’s not at all surprising to see that organizations investing in cloud sharing services have better employee engagement and satisfaction than the local hosting companies. 

Cloud-native application development also helps with personalized customer data insights to boost data access speed and experience. For instance, Appinventiv crafted a customer-centric data analytic platform on the cloud for a leading telecom company. The insights offered by the cloud analytic platform led to 85% in data accessibility, better customer data management and optimization. 

A varied range of solutions 

Cloud-based solutions contribute maximum to the organization’s success by extending the range of services and resources for the business model. From CRM to ERP solutions, the cloud computing platform manages everything. 

For instance- Appinventiv created an ERP solution on the cloud for the world’s biggest furniture retailer IKEA. From creating a private IP address to developing an entire web application on the cloud, we helped IKEA improve its customer onboarding and data accessibility. 

Consult our cloud experts

Furthermore, cloud computing application development keeps data quality in control and helps with disaster recovery and data loss. These advantages exhibit how developing cloud-based solutions can help your business reach new heights. If you are convinced enough, let’s bring you the steps you need to follow to develop a successful cloud application.

Also Read: Why cloud managed services are a strategic necessity for modern enterprises

How to develop a cloud based application?

Cloud application development ranges from mobile development services to web development services. It’s better to choose the most appropriate approach like interconnection bandwidth that goes well with your project idea. It’s also important to have an investing mindset when working with cloud development. You need to understand that the resources you invest in are going to commit and scale your business in the long run.

How to develop a cloud based application

Before you begin, identify your target audience, pain points, and demand in the required app. Then analyze how your product can resolve its challenges. When you are done analyzing, below are the steps you can follow to create a cloud-based application the right way: 

Hire a cloud development team 

You are more likely to build a successful app when you outsource cloud development services. A reliable cloud app development company can get you quick business model analysis, app development cost estimation and project planning report. 

Before diving into the actual development process, your cloud application developers will help you create an app workflow, choose the MVP features of the app and design the app concept. 

The architecture and features 

For an efficient cloud based app development, you need to put in the aspects such as service model, app architecture and cloud migration. These decisions directly affect your app’s performance. Hence, it’s important to discuss with your outsourced team what’s best. 

You can safely develop apps and employ cloud solutions easily due to simplified cloud architecture. Experienced cloud app developers recommend using advanced cloud architecture built on microservices. You can choose any kind of cloud deployment service discussed above (IaaS, SaaS, PaaS) for the service model.

Further, you can move your company’s data to the cloud server for better accessibility and processing using cloud migration. 

Defining the tech stack

When choosing tools for creating cloud applications, you must analyze requirements, features, and design that fit your app. Also, keep in mind the scalability factor while choosing the tech stack. Below is a common tech stack for creating simple and advanced cloud-based applications. 

For data and app: 

  • ClearDB 
  • Cloudant 
  • Akamai

For DevOps

  • DataDog 
  • Jenkins
  • New Relic 
  • Sauce Labs 
  • Bitbucket 
  • Cloud9 IDE

For Business tools: 

  • G Suite 
  • Jira 
  • DocuSign 
  • UXPin 
  • Balsamiq
  • InVision 

Choosing an app monetization model 

Now that you know what your audience needs, you can predict what your users will pay for. Here are four app monetization models you can choose from: 

  • Paid 
  • In-app purchase 
  • Freemium
  • Advertising 

Development and testing 

Cloud solutions are developed in accordance with Scrum and Agile methodologies. The building process is usually split into sprints (where 1 sprint = 10 working days). Cloud-native applications development is extremely important when building such solutions since they offer higher customization with hassle-free processes. 

Testing the product using various quality assurance processes is mandatory before releasing it. This conforms if your cloud application provides desired user experience. Outsourced full-cycle development companies offer design, development, testing and management services that result in higher product quality. 

App launch and maintenance

You can release your cloud app on Google Play (Android) or App Store (iOS). Google Play works on automated testing to speedify the app approval process. However, Google doesn’t mention why your app is rejected in the result. Google Play also does not charge for its analogous fee. 

[Also Read: How to Upload an App to Google Play Store?]

The App Store delegates app validation to real people. If the validators unapprove your app, they will ask you to perform specific changes for approval. For the App Store launch, you will need to pay $299 a year to join Apple Developer Enterprise Program. 

Also, remember that app deployment may take some time and require additional development and modification cost. Speaking of which, it’s time to reveal the average cloud application development cost. 

Read case study

How much does it cost to build a cloud-based application?

The cost of developing a cloud software platform or application relies on the below-mentioned factors: 

  • Product design 
  • Product features 
  • Location and rate of your outsourced development team 
  • Project size and complexity 
  • Technology stack 
  • Timeframe 

For a rough cloud app development cost estimate: 

  • Usually, SaaS cloud development services can cost as low as $500 to as high as $500,000, depending on what you are trying to build. 
  • A basic cloud application requires 200 to 600 hours of development time and may cost you around $15,000 based on the team input. 
  • A medium to complex cloud application takes around 800+ hours of development time and will cost you in the range of $25,000 to $50,000 

The above range does not include the cloud hosting prices. You can choose any hosting platform from AWS to Microsoft Azure or GCP cloud hosting.

Your cloud development service provider can give an accurate cloud app development cost estimate, keeping every factor in mind. 

The best part about cloud app development services is that you don’t have to deal with any sort of server expenses, hardware complexities and data storage issues. However, it is not an easy job to manage cloud-based solution development since a few challenges are always on the way. 

Tech challenges in cloud-based app development 

Cloud-based product development is definitely technically demanding and challenging. Along with the desired benefits, you must also be aware of common pitfalls in the cloud development process. Below are some of the most frequently faced challenges: 

Service design 

It is important for cloud apps to be tightly coupled with service logic and implementations in a customer-centric world. While simple in principle and infrastructure, it can be a rough time for cloud app developers to design flexible and reusable components that are adhered to service features. 

Application security 

Application security beyond authorization has always been an area of concern for users. Due to the state of browsers, your cloud app needs to ensure a critical security factor outside the browser. 

You can use reverse proxy and strong data encryption measures to address possible security concerns. 

Interoperability and portability 

When working with the cloud framework, interoperability is the ability to write code that is well versed with multiple cloud providers simultaneously, despite the platform differences. However, the pressing issue is the communication of various platforms through one code structure. For this, the cloud app developers require strict and standardized operating protocols that are easy to implement. 

Sometimes, scalability can also be an issue; however, you can go with hybrid cloud architecture for maximum scalability. We recommend not applying for a predefined software that offers quick scalability features; instead, discuss a reliable solution with your cloud app development company. 

How can Appinventiv help you with Cloud app development? 

Appinventiv is a leading mobile app development company with expertise in technologies such as cloud computing, AI/ML, AR/VR, data analytics, and so on. 

As part of our application and software development services, our experts can help you select a cloud model (IaaS, PaaS, SaaS) that aligns with your business needs. Our experts deliver world-class cloud consulting services for every business requirement, be it an on-premise data center or a third-party host. We offer cloud consulting, cloud machine learning, cloud-native development and flexible cloud management services that yield results.

Connect with us for the most scalable and secure cloud mobile app solutions. 

FAQs on Cloud application development 

Q. What is the difference between web application and cloud application?

A. The major difference between web and cloud applications is the architecture. A web based app must have a continuous internet connection to function. On the other hand, a cloud based application can temporarily perform processing tasks on a local computer or workstation. 

Q. What is the most common example of cloud application? 

A. Google Doc or Office 365 is a paradigmatic example of a cloud application. In order to access any of these cloud applications, all you need is a device capable of running a web browser or an internet connection. The functionality and interface along with the data storage is delivered from the remote servers. 

Q. Why is cloud computing the future of modern technology? 

A. The tech future is said to be highly competitive and requires agile technologies to sustain in the long run. Cloud computing is one such technology that can save your business money on servers and management services, data storage and processing. Since you can move these resources on the cloud at the minimal cost, you save your time and money while making your operations more efficient. 

Q. What are some latest cloud computing trends for the year 2022? 

A. Some of the recent cloud computing trends making hit in the market are: 

  • Cloud AI 
  • Quantum Computing 
  • Kubernetes
  • Containerization 
  • Intelligent SaaS 
  • Cloud Native applications 
Sudeep Srivastava
Co-Founder and Director
Prev PostNext Post
Read more blogs
cloud native application protection platform

Is a Cloud-Native Application Protection Platform (CNAPP) the Answer to Security Woes?

Cloud computing, at the back of its wide-ranged benefits spanning across scalability, high mobility, easy data recovery, high performance, and quick deployment, has come at a stage where the market is set to reach $676 billion in 2024. While on one side, the idea of having on-cloud presence is becoming mainstream, the other side -…

Sudeep Srivastava
on premise vs cloud

On-premise vs. cloud - Analyzing the benefits, risks and costs for enterprises

Are you standing at the crossroads of a technological revolution, pondering the question that's on every modern enterprise's mind: on-premise vs. cloud? The stakes are higher than ever. With the global cloud computing market poised to soar to an astonishing $2.3 trillion by 2032, the future seems to be whispering its secret preference. Yet, the…

Sudeep Srivastava
cloud cost optimization

Navigating the cloud cost landscape - Strategies for efficient spending

It is no news that cloud computing has become an integral part of the modern business world. The movement toward cloud computing, which was gradual and steady in the last decade, was accelerated and catalyzed by the COVID-19 pandemic. So much so that by the end of 2022, end-user spending on public cloud services reached…

Sudeep Srivastava
Mobile App Consulting Company on Clutch Most trusted Mobile App Consulting Company on Clutch
appinventiv India

B-25, Sector 58,
Noida- 201301,
Delhi - NCR, India

appinventiv USA

79, Madison Ave
Manhattan, NY 10001,

appinventiv Australia

Appinventiv Australia,
East Brisbane
QLD 4169, Australia

appinventiv London UK

3rd Floor, 86-90
Paul Street EC2A 4NE
London, UK

appinventiv UAE

Tiger Al Yarmook Building,
13th floor B-block
Al Nahda St - Sharjah

appinventiv Canada

Suite 3810, Bankers Hall West,
888 - 3rd Street Sw
Calgary Alberta