SaaS and custom software. What do they mean and Which one to choose

When a business decides to automate its processes with software, it needs to decide between enterprise software and SaaS. Like the difference between buying an Android or an iPhone. Often this has to do with the reason they want it in the first place. Both Enterprise and SaaS solutions have advantages and disadvantages. For a business, it comes down to what custom software will deliver in comparison to SaaS.

This brief explanation of the two options may not explore all the ways in which they differ or their individual benefits but should start you thinking about how you can use them to your advantage.

SaaS Pros and Cons

SaaS is software that runs on the internet. ie: and Xero. You create an account and subscribe to a service provided through a website. There are many pros to using a SaaS, including the fact that you can focus on your business whilst not worrying about hosting hardware, software, or other related technology needs.

• Leverage costs across a larger user base.;
• You can keep running your business and let the cloud company make sure their software is always up to date;
• Cost-effective;
• The company behind this app is always making improvements and is open to your feedback about the features. Problems can be solved and features added often;
• Easy to develop and deploy;
• With SaaS you get access to a large pool of resources; and
• Keeps in tune with First Principles( best-practice).

Cons

• You upload all your data to the company providing you with this kind of service e.g. a place for you to store your data like Dropbox or Google drive;
• No control over the system eg. application can be discontinued;
• System features can change leading to a loss of functionality in your business.;
• You may need more than one app from Cloud App. They sell different solutions and some work better than others depending on what features you're looking for.;
• Cloud App may leave you having to complete more of your work offline to make up for it's shortcomings.;
• A great alternative to the cost of re-development is building your own website.; and
• Loss of competitive advantage by conforming to "standard practice".

In short, SaaS is a great way to leverage technology for a fraction of the cost. But you are using a generic platform and can often compromise your own procedures to work within the parameters of the software.

Using a SaaS system is a great way to facilitate certain aspects of your business, but if you need to perform critical tasks, it simply won't suffice.

Custom Software

On the other hand, custom software is exactly that - software designed and developed to your specific requirements. Custom software development, as opposed to SaaS apps, is a much more complicated task. This means that you should be very cautious when approaching it because the benefits can be great.

Pros

• You get the features necessary for your own business needs.;
• The data generated is yours;
• As the system is custom-designed, you get to exercise full control over the system;
• The software is made for you, so no compromise;
• You can continue with your best practices;
• Keep your competitive advantage; and
• You get to build your  brand

Cons

• Software development life-cycle is time-consuming;
• Expensive to develop;
• Regular maintenance for smooth running( Higher downtime) ;
• Since you keep the data, cyber security is your responsibility; and
• Getting the right personnel to develop the solutions.

If you want your business to be as efficient as possible, Custom Solutions is the one for you. Mastering your competitors' core competencies in a system can lead to amazing results. But there are many risks that come into play - it takes a well-thought-out development program with people who know what they're doing

In the end, it's best to see which one will be the better fit for your needs and then give it a try. The one you decide on will most likely work for you well. It is important that when looking for alternatives, you look at both the good AND bad qualities of the alternatives and decide on the one that best fits what your system needs.

At Noetic IT Services, we can assist you in identifying your system requirements and then determining the best alternatives available. We have our own development team to implement a SaaS or develop and launch your Custom solution for you.