One of the first things for any enterprise is figuring out their IT strategy – whether they want to opt for a SaaS solution or get it programmed in-house. Now, this may not seem much at first, but for a growing business, a lot is at stake in this decision. Thanks to the booming software delivery channels, today startups can have access to high-end technology and compete with the big players out there. That said, a lot of factors influence the decision of choosing between the two, and it’s not a one-size-fits-all scenario.
In general terms, on-premises, in-house solutions are the ones baked exclusively at the office building and then serve different venues. The off-premise solutions, on the other hand, are developed by a third-party, outside the office premises with limited, remote access to the servers. On the surface, such differences may not seem much, but when compared to each aspect, there’s a lot to unpack. Therefore, without further ado, let’s take a closer look.
SaaS vs In-house Development: A Comparison
Irrespective of choosing SaaS or on-premise, one of the first things that a business owner needs to figure out the following terms:
- Target objectives
- Security Protocols
- Company Culture
The above factors can influence their decision of going with SaaS or on-premise significantly, and alter the course of any business. However, once that’s out of the way, here are the major differentiators when it comes to SaaS vs On-Premise solutions:
#1 Accessibility and Implementation
For a business owner hosting solutions on-premise, implementation is a lengthy process because of the many layers of planning, organizing, and then execution. While it does provide the business owner with sheer control, it slows down the overall process and is less flexible to work around, which when undermined may lead to serious consequences in the long term.
This is where SaaS comes readily available, good to go right away even when a business owner needs personalization. Furthermore, SaaS offers diverse accessibility to its users, meaning they can use services irrespective of their location, once the SaaS ownership is established and accountable.
#2 Affordability and Costs
The initial cost involved in getting solutions hosted on-premise, and then set things up for their daily execution, and maintenance is quite a heavy investment. Furthermore, it may also create opportunities to have an ecosystem for troubleshooting, maintenance, and future upgrades – something that not all business owners are keen to figure out in the initial days of a business.
On the contrary, one of the USPs of many SaaS products is its affordability, thanks to its subscription-based model, giving an upper hand to the business owner to limit the upfront charges. As long as the business owner is in sync with the features under a subscription or license type, and makes the most of them, SaaS can be a great way to get their feet wet.
#3 Support and Maintenance
Just like a strong team of developers, on-premise solutions also require a skilled group of IT professionals to carry out everyday maintenance, emergency support, and upgrades. In this case, the business owner is more or less on their own to figure out recovery paths in case of a disaster, and troubleshoot problems without hampering the security of a product.
On the other hand, SaaS solutions come with added benefits of support and maintenance, as the vendor is in charge of the product. Nevertheless, the catch for any business owner under such circumstances is to never let go of the steering wheel blindly to the provider to avoid any possibility of data threats or compliance compromises.
With on-premise hosting the business owner has to be prepared to overcome each roadblock with the help of its team, in order to scale their business. This not only takes dexterity in handling each step of the scaling process but comes with a lot of time and not much flexibility. For a fast-growing business, this is why on-premise can be a major bummer.
SaaS, on the other hand, has scalability ingrained within its model, based on the business needs. These third parties provide flexibility to the business owner to upscale their bandwidth, license, servers, and storage within their current subscription cycle. Business owners can also choose to downscale their packages based on their renewal period.
For any business owner, the security of their network is of the most critical concern. The same goes for on-premise hosting where a dedicated IT team, actively deploying the latest security protocols is a must-have. They’re also responsible for establishing their very own firewalls and barriers to neutralize any possible threats of data, compliance, or other cyber attacks.
In a SaaS model, the vendors provide high-end security layers to keep data protected and double-checked across all circumstances. Based on the transparency between the business owner and the vendor, the former can keep a check on all security protocols and ensure that the deliverables are met.
In a Nutshell
While developing custom solutions on-premise for a brand is a comfortable choice for business owners, especially for the ones not yet moved to the cloud; the benefits that come with SaaS outweigh many advantages that traditional software development provides. The very fact that any business can opt for SaaS without having to spend massively upfront gives a head start to them.
Many businesses may have a suite of requirements that may not be met with regular CRMs or storefront builders. For example, for a successful storefront, among the main requirements include – inventory management, shipping and order management, chatbox and support automation, payment processing, sales management, etc. In such cases, the business owner would require a plethora of various SaaS products (preferably under the same umbrella) to keep it cost-effective and streamlined. While the market currently provides many such unifying software solutions like Engagebay for the business owners to choose from, here are some of our recommendations that deliver quality and fit the pocket:
It is a one-stop shop for looking after your business needs – from customer acquisition to sales and marketing; they’re also an excellent call for businesses with a growing workforce needing HR management. They’re trusted by over 50,000 businesses worldwide and come with a no-credit-card-required free trial!
A global technology leader, they’re a platform with a range of products curated specially for small businesses, solopreneurs, accountants, and more. Among their many products include the complete finance management suite of Quickbooks, MailChimp for all your sales and email marketing management needs, etc.
In case you’re seeking a SaaS solution that primes towards human resources, hiring, and eCommerce solutions all at one place – we’d recommend PYPA. Currently, under beta testing, their products can be your go-to for everything your business may need – from order, subscription, and customer management; to marketing analysis, shipping, and so much more. The best part is you can try them out early, by signing up for their beta, now.