The advantages of working with SaaS vs. in-house developments

The advantages of working with SaaS vs. in-house developments

All about software as a service: what are its advantages, the differences with in-house developments and the advantages of first-class platforms.

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For users unfamiliar with software access methods, the concept of “SaaS” may seem complex at first. What if we told them that popular services such as Gmail, Dropbox, Office 365 and Canva are available under this modality?

If you want to know more, stay and read on, because in this blog post of Conciliac, a company specialized in automated reconciliation processes, we review everything you need to know about this modality.

What is SaaS?

Software as a service is a model of access to programs through usage agreements, without the need to be the owner. In other words, there is no purchase of the service but a kind of lease. A subscription.

Under SaaS (acronym for “software as a service”) the accessed program can be hosted in an external infrastructure operated by the provider, or in the user’s/company’s facilities. In both cases the “gateway” is an external or internal server, as explained earlier in this blog.

When reviewing the characteristics of SaaS, the following variables should be noted:

  • It is a form of software and application delivery as a service over the Internet.
  • In the case of on-premise software, this is done through an intranet.
  • Access for full use is beneficial, freeing the user from software administration and updates.
  • It is a fundamental model in the modern digital economy, with numerous major suppliers in the technology industry.
  • As a subscription-based system, how are prices set? Prices are set according to variables such as the use of the different functions and the number of people using the program.

One recommendation before continuing. The Open Source Paradigm Shift essay by Tim O’Reilly, one of the authors of the Web 2.0 concept, is a must read for those interested in SaaS.

Is SaaS equal to cloud computing?

As we explained in SaaS, a service to always have the best software updated and at the best cost, the prominence of cloud platforms has generated confusion about the characteristics of software as a service.

It is important to clarify that the SaaS model does not necessarily refer to programs hosted in the cloud. The cloud variant is one option, but not the only one. On-premise software is a variant of the same modality.

What is on-premise software?

In this aspect of SaaS, users access from their devices to a program that is installed on an internal server, for example in a company.

What is the advantage of on-premise software? It avoids the risks associated with hosting sensitive information on public or external servers.

The differences between SaaS and in-house development

Traditional software is software whose license is sold. In SaaS, on the other hand, there is no sale, but a subscription.
The difference between traditional software and software as a service is that the former tends to be used by buyers without a specific time limit, while the latter can only be used for a predefined period, paying a monthly or annual fee.

What about in-house software? As explained in this interesting article published in Medium, it involves the independent development or modification of purchased software. This happens when an organization feels that the tools available on the market do not match its needs.

Working with SaaS: what are the benefits?

Software as a service in its different variants offers a number of advantages to users, which explains its popularity in today’s market.

  • SaaS users should not have to deal on their own with maintenance issues, security risks, service availability, training and other possible problems with the software. All these aspects are handled by the provider company.
  • Unlike in-house developments, when opting for SaaS, it is not necessary to prepare experts for maintenance, updates, training, etcetera.
  • Choosing software as a service avoids a high initial investment, since a subscription is paid. This allows even small and medium-sized companies, even emerging ones, to have access to quality tools at a much lower price than traditional software.
  • In addition, SaaS providers offer their programs without additional maintenance costs.
  • Security levels are perceived to have been strengthened, since data are protected against risks related to breaches or failures in the devices.
  • The model operates with programs that are compatible with a wide variety of equipment.
  • Customers can scale resources according to their needs, as opposed to the more hermetic nature of traditional software and in-house development.
  • SaaS moves with out-of-the-box solutions. Implementation time is relatively short compared to in-house software, which is typically lengthy.
  • Under this modality, tools are offered that are generally easy to use. Because they are developed for the needs of multiple clients and in different scenarios, they are designed to be highly intuitive.
  • SaaS offers vendor-guaranteed upgrades, which are regular and provide solutions without delays. In this way, companies save valuable resources such as time and money, in addition to providing their activities with advances to operate with the highest standards.

World class platforms and automation

Perhaps the best thing about software as a service is that it is a way for small, medium and even gigantic users to access quality tools, which in this world is known as world class platforms.

The advent of software as a service has substantially changed the logic that prevailed a few years ago, when companies were faced with the challenge of facing large upfront costs. The payment of a subscription, instead of the purchase of a complete package, is one of the variables that favored it. It is no coincidence that the SaaS concept has gained so much ground, with many companies, users and providers moving into this area.

The good news is multiplied if we add the advantages of automated systems to the world class programs. Conciliac’s comprehensive EDM platform allows you to manage data with a variety of modules and functions. It is a software as a service on-premise that provides all the benefits of a state-of-the-art product, installed without any detours, in the company’s own infrastructure.

Why is it a pure win-win option? Because it opens the door to a first-class platform, proven in different industries and markets. As mentioned above, while remaining SaaS, this on-premise software provides full security in data processing, which is always performed in the company’s internal infrastructure.

Do you want to know everything Conciliac EDM can do for your business? Don’t hesitate to ask for a demo now.