SaaS v/s In-House Solution- Which is the best delivery solution?

May 31, 2023

If your business involves sales and distribution, you might want to streamline your team efforts and increase productivity. Regardless of the type of business you are in, delivery management software is the commonality that can prove to be highly efficient for your business and serve your customers.

With SaaS models and cloud software becoming popular, it might be confusing for businesses to find the right fit-in between SaaS and in-house software. Let’s understand both and see how we can help you achieve your business’s full potential.

SaaS

SaaS is an acronym used for “Software as a Service.” SaaS is a type of cloud-based software used by businesses of different sizes based on their requirements. The license of the specific SaaS software is accessed via a subscription model and is peripherally hosted by the company that primarily owns and provides the service. One of the most common examples of SaaS is “Amazon Web Services.” AWS offer tools like compute power, database storage and content delivery services.

In-house Solutions

“In-house solutions” or “on-premise solutions” refers to software applications or programs that are developed and maintained by a company or organization for its own use, rather than being purchased or licensed from a third-party vendor. In other words, in-house software is created by a company’s own software development team or by hiring external developers to create software that is tailored specifically to the company’s needs. Eg. Country Delight and Amul have their in-house solutions.

Deciding which fits the best?

By now you might have got a fair idea of what the difference between SaaS and custom software is.

Here are the factors to consider while picking between them-

Budget

SaaS Solutions

As the IT company rents SaaS solutions that are subscription-based, there is no need to spend a huge amount for the set-up cost. These charges are paid monthly or annually for maintaining the software. Small business and enterprise businesses generally seek more cost-effective solutions and therefore choose SaaS.

In-house Solutions

In-house or on-premise solutions are costly as companies need to buy certain hardware to develop the software and hire a team for the same, making one-time set-up costs very high. While the maintenance costs can be low, however, companies need to hire their IT infrastructure and staff for troubleshooting and maintenance and regular hardware upgrades can add up to the costs.

Other undetermined costs can increase the overall cost of in-house solutions:

Downtime

Training

Server

Installation and configuration

License maintenance fees

Maintenance and support

SaaS Solutions

As SaaS solutions are hosted by a third party, it is maintained and supported by the same. However, businesses must not blindly trust the software provider and should consider checking the data security and compliance features.

In-house Solutions

Businesses with in-house solutions integration use their device and skilled staff for maintenance and support to fix bugs. These issues and bugs impact the security of the data and products. However, in-house solutions give more control over the data as compared to SaaS applications.

Operating Cost

SaaS Solutions

SaaS is a ready-made solution and doesn’t require many customizations. Different SaaS products are created specifically for different business needs which minimises operating costs.

In-house Solutions

On the contrary, the operational costs for in-house solutions can be high as it requires funds in the initial stage for both small and large-scale businesses. If the processes of in-house solutions are not efficient, businesses might have to invest even during periods of inactivity.

Training required

SaaS Solutions

SaaS provides generic training that can be taken by the employees as per their feasibility. The software is also easy to understand and doesn’t require the person to be a tech geek.

In-house Solutions

In-house solutions require an adequate amount of training that is organisation-specific training for employees to understand the working of the software as it comes with a certain level of technicalities and functions.

Scalability

SaaS Solutions

Scaling with SaaS delivery management software is very easy depending on the business requirement. The software provider allows businesses to upscale their businesses and add storage and services without having to invest in new hardware or software.

In-house Solutions

Scaling with in-house solutions needs proper and efficient planning to face any blockers. In-house solutions aren’t the perfect choice for businesses looking forward to scaling flexibly.

Backup and Recovery

SaaS Solutions

SaaS is a cloud-based solution, which means that the data is automatically backed-up. It is easy to recover the data in case of any disaster, and the subscription can be continued according to the product and subscription.

In-house Solutions

The cost of operational recovering and storing the data is quite expensive with in-house solutions. Setting up duplicate data storage is the only option in case the central processor stops working.

SaaS solutions provide automatic updates and maintenance, as well as offer more scalability and flexibility than an in-house solution. The software is also budget-friendly and is much easier to use than an in-house solution. However, ultimately, the choice between an in-house solution or a SaaS solution will depend on factors such as the organization’s budget, IT resources, security requirements, and software needs. It’s important to carefully evaluate the pros and cons of each option and choose the one that best fits the specific needs and goals of the organization. Book a meeting with our tech experts and learn more about our SaaS model and see how can it help your business.

Hope You Enjoyed the Read!

ravi garg, trakop, founder signature image

Ravi Garg Founder & CEO

He loves to explore. His passion for helping delivery industries in all aspects flows through in the vision he has. In addition to providing smart solution to make delivery process flawless, Ravi also likes to write sometimes to make it easier for people from business industry looking for digital solutions.

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SaaS v/s In-House Solution- Which is the best delivery solution?

SaaS

In-house Solutions