October 20, 2021

SaaS Vs Custom Software Development | Which is Best for your Business?

SaaS (Software as a Service)

Software-as-a-Service (SaaS) is a cloud-based software used by all sizes of businesses This model allows access to data from anywhere with a web browser and internet connection. Under SaaS, the provider hosts, maintains the databases, servers, and code that make up the application.

What makes SaaS unique from traditional on-premise software delivery models is that it does not require extensive hardware which allows buyers the option to outsource certain IT tasks required to maintain and troubleshoot the software. SaaS systems are generally paid via subscription instead of through an upfront payment.

Custom Software Development

Custom software is a type of software exclusively developed for a specific user or organization. This differs from software packages that are developed for a mass market, such as commercial off-the-shelf software. Larger companies generally use custom software due to the personalized functionalities available. However, smaller companies can also benefit from custom software.

Custom software is designed with a business’s specific needs in mind which allow for greater productivity, scalability, long-term savings, and greater quality of service. Custom software is generally a larger initial investment, but the payoff can be substantial.

Pros and Cons

SaaSNormally subscription based so low initial cost of starting upSaaS provider owns the IT infrastructure so maintenance cost is theirsSaaS solution is already deployed in the cloud, only minor configuration neededHardware and software updates are the responsibility of the providerFlexibility to change plans as needed for more functionalityNo ownership of core code so customization is minimalIf it is a Subscription model, costs pile up in the long runRenting the Software so its metaphorical all eggs in one basket.Data is stored in provider-controlled databaseThe provider may be acquired or shut downNumber of reports is limitedDifficulty with regulation complianceData security may be insufficient
Custom Software100% customizable as per requirementsSoftware is fully ownedThe data is owned by the companyCustom software has a better advantage to integrate with third-party softwareBetter reporting and analytics. It can also be integrated with any third-party reporting tool.Takes a long time to scope and developInitial investment is high (though cost effective in the long run)Prone to security risks and bugsGreater Dependence on developers

Popular SaaS Software for Businesses

CRMZoho CRMGet Started
AccountingZoho BooksGet Started
HelpdeskFreshdeskGet Started
ERPSaleseforceGet Started
CommunicationsSlackGet Started

What to choose for your Business

When deciding between SaaS and custom software, it is important to first determine the goal you wish the software to achieve and the overall customization required in order to achieve the goal.

Still Confused? We are here to help you!

There is no one common answer which suits all when it comes to purchasing software for businesses because every business has its own process. SaaS solutions may be suitable for small, newly established businesses that only require basic features and functionalities. However, businesses that have been in operation for several years may need custom software to help their company grow.

To learn more about SaaS and custom software solutions, speak to an experienced professional at Dqube today by calling +91-7092969091 or by requesting a consultation below.

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