When software is being selected for a business process, there are essentially two ways they can go:  SaaS or Custom Software.  

The difference between the two is comparable to buying a car versus leasing a car. They both have their advantages but generally speaking, one could say that if you're looking to use software in your business and it requires very unique features that are only specific to your needs and not readily available, then getting a custom application might be the way to go because customizations can be easily done that aren't usually possible with an off-the-rack product like SaaS solutions.

Let’s take a closer look at these common approaches and the strengths and weaknesses of each of them so that you can make an informed decision for your eCommerce development project.

SaaS Application:

Software as a service (SaaS) is a cloud-based application delivery and consumption model where users pay for the software on a subscription basis, depending on the number of licenses and features in use. We all know what SaaS is, but here’s to make sure everyone’s on the same page, SaaS stands for "software as a service.” In this context, it means that the software you use has been set up and hosted by one company, which will give you access to their product on an ongoing subscription basis. Some of the examples of  SaaS include DeltaSalesApp, Pipedrive, Hubspot, etc.

By 2025, SaaS is expected to grow by $100 billion globally. This article discusses why this growth is taking place, along with detailed insights into the companies doing this business around the world.

Key features of SaaS Application:


Pros of SaaS application:

  1. Normally subscription-based so a low initial cost of starting up.
  2. SaaS providers own the IT infrastructure so maintenance cost is theirs.
  3. SaaS solution is already deployed in the cloud, only a minor configuration is needed.
  4. Software updates are the responsibility of the provider.
  5. Flexibility to change plans as and when needed for more functionality.
  6. Well tested as many customers use the same application.
  7. No hassle of server and maintenance.
  8. More user-friendly as it would have been tested and improved based on many users’ feedback.
  9. Hasslefree training

Cons of SaaS application:

  1. No ownership of the core code so customization is minimal.
  2. If it is a subscription model, costs pile up in the long run
  3. Data is stored in a provider-controlled database.
  4. The number of reports is limit

Popular SaaS Software in the market:

SaaS is a type of software that is hosted by a third party and offered to customers over the Internet. Rather than downloading a copy of the application, users can access it with a web browser or even in particular mobile apps that have been developed and modified specifically for this type of software. The SaaS provider then manages the software on behalf of its clients; hence it updates itself as necessary based on how its users are interacting with it to ensure they are getting their money's worth.

Some of the top SaaS software are SurveyMonkey, Hubspot, Microsoft, Asana, SAP Concur, ProofHub, Mailchimp, Canva, DeltaSalesApp, etc.

Custom Software:

Custom Software refers to designing software that is unique to a particular customer or group of customers within an organization. Such applications are designed to more precisely meet these users' specific needs. Custom software solutions are typically created by a third party or in-house development team and they are not made readily available for resale.

Due to the high costs associated with maintaining an in-house team of developers, many companies are hiring nearshore software development companies like Azumo. These companies provide benefits such as proximity for improved collaboration, shared cultural affinity, cost-effectiveness, access to a diverse talent pool, regulatory compliance, flexibility, language proficiency, and reduced travel costs. These advantages make nearshore software development an appealing option for many businesses.

It can take the form of a website, an application, or an intranet site and would be designed specifically to meet your company’s changing requirements as they evolve via changes internally or externally that may affect how their business runs. It is something that only your company can use as it is designed specifically for you and your business. So while it won’t be perfectly suited to help everyone, it will be ideally suited to meet your company’s specific needs.

Key features of Customized Application Software:

Pros of Custom software:

  1. 100% customisable as per requirements.
  2. The software is fully owned.
  3. The data is owned by the company.
  4. Custom software has a better advantage to integrate with any third-party software.
  5. Flexible reporting and analytics.

Cons of Custom Software:

  1. Takes a long time to scope and develop.
  2. Initial investment is very high.
  3. Prone to security risks and bugs.
  4. Greater dependence on developers and they are a high cost center.
  5. Need more usability tests.
  6. Extra costs for server and maintenance.

Popular Customized software in the market:

  • Automated billing system
  • Payment process
  • Asset management systems
  • Business intelligence
  • Enterprise resource planning (ERP)
  • Business continuity planning (BCP)
  • Enterprise application integration (EAI)
  • HR management
  • Call center and customer support
Date: Jun 30, 2022     Author: Annu Das

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