Enterprise Software vs SaaS: What’s Better for Your Business?
The question of whether to go with enterprise software or SaaS can be one of the most daunting decisions to make for your business. In this article, we compare the two and help you decide which one is better for your business. Although the Enterprise Software revenue for 2021 is a high 271 billion US dollars, let us not forget that the total global IT spending stands at a whopping 4.2 trillion US Dollars; and a fair chunk of that is going into SaaS.
You need a software solution to help you run your business more efficiently. As Neil Gershenfeld rightfully said, "Give ordinary people the right tools and they will design and build the most extraordinary things." But before that, let's answer another question, why do you need either one of these solutions? One word—efficiency. If you're looking for examples as to how companies have augmented their business, be sure to check out our portfolio.
1. What is an Enterprise Software Solution?
An Enterprise Software Solution (ESS) is a software package that is designed for use by large corporations and government organizations. It is also known as a "big-business" solution. The cost of an Enterprise Software Solution depends on the size and the needs of your company. It can be anywhere from $250 to $100,000 per seat. There are many different types of ESSs, but the two main ones are Content Management Systems (CMS) and Enterprise Resource Planning (ERP) software.
Speaking about "big-business" solutions, one might think of the world's largest conglomerates. However, ESSs can be used for ANY business. Yes, even for non-business purposes, such as a not-for-profit, school or church. Click here to see what technologies are currently trending.
2. What is a SaaS Solution?
SaaS is an out-of-the-box application that you access via the internet. This means that you don't own it, but have got to pay a monthly fee in order to use it. The term “Software as a Service” or “SaaS” refers to software that is hosted remotely. This means that they do not have to be installed on a local machine. Users access this software from their computers or mobile devices through a web browser or an app.
SaaS solutions are often used for collaboration tools like email, project management, or customer relationship management. They can also be used for business applications like payroll or accounting. Do you have an idea that you want to monetize by building your own SaaS? Connect with us for your free estimation today and start making money by generating a new revenue stream for your business.
3. Why Is SaaS Better?
The benefits of a SaaS solution are many and include the following: They are easy to set up and use. They are user friendly. They are secure and scalable. No matter how many people use the software, there will always be enough available for everyone. SaaS solutions are typically much cheaper than traditional software. They can be immensely cost-effective for businesses by not having to purchase licenses upfront for your software.
The greatest benefit of them all is that the software can be updated automatically without any downtime. The fact that you can upgrade or downgrade at any time without having to worry about buying or installing new software is certainly a bonus which any business owner would appreciate.
4. Why Is Enterprise Software Better?
The biggest benefit of using an Enterprise Software Solution is that it's fully customizable: you define the features based on your needs. It is also scalable. A company can buy an ESS for one employee and then upgrade it as their business grows. It often includes a database management system, an integrated development environment (IDE), and a workflow engine.
If you're wondering what an IDE is? An IDE is a program that helps you develop software, and a workflow engine is a program that helps you create and run workflows. An IDE is used to write code. A workflow is a set of steps that are executed in order. An integrated development environment is a program that combines the functions of an IDE and a workflow engine.
In simple words, an Enterprise Software solution allows you to plan, organize, execute and control over the process that suits your business to increase ROI. It helps to reduce unnecessary costs and retain profitability. ESSs make it possible to automate your business and run your enterprise systematically.
5. The Pros and Cons of Each
|Enterprise Software Solution (ESS)||Software as a Service (SaaS)|
|TIME||Deployment Timeframe depends on the need and requires intense user training.||Almost Instant Deployment and Rapid User Training.|
|FEATURES||Fully customizable as per your requirement.||Multiple tested features that may or may not suit your all needs.|
|COST||High upfront cost but less-to-nil update cost depending on your specific requirements only.||Budget-friendly, perpetually recurring paid subscription that includes all new features (that may or may not serve your business).|
|SECURITY||No need to transmit your data to any third-party services unless you choose to.||Terms as required by the SaaS provider.|
|INTEGRATION||Integration is built into the software according to your business requirement at the very start of the project.||API (Application Programming Interface) allows integration with popular third-party software.|
It’s not always possible to determine which is the right solution for your business. It depends on your needs, budget, and the features you need. For example, some businesses prefer to use the software that they already have because they don’t want to spend time and money to set up a new system. On the other hand, a small business may not have the resources to purchase a software package. In these cases, it may be a good idea to consider SaaS solutions.
As Mark Cuban says, "Everyone has ideas… the hard part is preparing and executing those ideas." As you make your choice between Enterprise Software and SaaS, you need to consider the size of your business, the types of functions you perform, and the level of support you need. We have put together some questions to help you make the right choice. Or, you could skip the hard work and leave it to us by sending us an email or simply give us a call on 🇺🇸 +1-470-772-5053 🇮🇳 +91-76-22081234
Questions To Help You Choose Between SaaS or Traditional Enterprise Software
- Why are you evaluating these options?
- What are your goals?
- What are the benefits of each?
- Which option would you choose?
- What are the risks of each?
- How can you reduce the risks?
- Which option is more cost-effective?
- Which option is easier to use?
- Which option will you be more comfortable with?
- Which option has the best customer support?
- Which option is better for scalability?
- Which option is better for security?
- Which option is better for innovation?
- Which option is better for your business?
If you do not have all the answers, don't be overwhelmed. Our specialists will help you out with a consultation on the house—free of charge! Let's talk now.