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SaaS vs. Custom Software: Which is Best for Business?

01 June 2022 by Sara Wahba

SaaS vs. Custom Software. The competition between different software is relentlessly raging. Business owners and companies want to get the most out of their software to manage and facilitate their businesses. Companies of all kinds share many business factors, features, and tools, including software aiming to increase production and save money and time. But at the same time, these companies want to provide the best customer experience to get positive feedback about the company.

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Software for small businesses is many and varied, and finding the best one takes hours and hours of research. Therefore, Kapsys decided today to summarize two types of effective software that you can compare and choose the best one for your business needs. In this post, you'll find two main software solutions; SaaS and customized software solutions. Read carefully to have a better understanding of both and determine your best option among SaaS vs. Custom Software:

SaaS vs. Custom Software: What are SaaS Solutions? 

SaaS, better known as "software as a service." Maybe its name is not widespread; however, you've probably worked with SaaS software daily. SaaS applications are sometimes called Web-based software, on-demand software, or hosted software. Software as a service (SaaS) is a model in which a particular software is licensed on a subscription basis and centrally hosted by the service provider company. SaaS allows users to connect to and use cloud-based apps over the Internet. In other words, in explaining SaaS service, you can think of it as banking services. The banking system is unified for all the customers. A customer can't require the bank not to deal with other customers or provide them with a service that distinguishes them from other customers. See 10 tips to help SaaS startups grow in 2022 This is precisely the situation with SaaS services. They are reliable services like banking, but they do not offer benefits that make you stand out from your competitors. Thousands of users log on to the same SaaS software tools daily and view marketing analytics, create landing pages, write blog posts, etc. 

SaaS products are reliable, valuable and widespread; however, there are many elements we need to point to:

  • First, SaaS software tools are affordable innovations and effective. You can use it without paying the costs of building or hosting the tool. 
  • Customizing your SaaS product can be a complex process; almost impossible to build precisely the tool you need. 
  • You might find many features you don't need, and many other services are not available which are you need them the most. 

SaaS provides a complete software solution that you purchase on a pay-as-you-go basis from a cloud service provider. So, before investing any money into a tool, ensure you're getting exactly your business requirements to enhance your performance.

What is Custom Software Solutions? 

Custom software is tailored software exclusively developed for specific business needs. It’s not intended to serve multiple businesses and industries. Instead, it is scalable to fit your potential needs as your company develops and grows.  Large companies consider custom software their first solution due to personalized functionalities. However, custom software development for small businesses is very crucial and effective. You can get many benefits from custom software development outsourcing. The custom software tools could be a website, a mobile application, or any other software, and they will be ideally suited to meet your company’s demands. As a result, this custom software development market differs from packaged software for a mass market, such as commercial off-the-shelf software. See Custom Software Vs. Off-the-Shelf Software

Custom software is designed to thoroughly and perfectly solve your problem; however, there are many elements we need to point to:

  • Creating a custom software solution is a long process, not an instant solution. 
  • A custom software tool requires a higher upfront cost than what you would pay with a SaaS solution. 
  • The custom software tool you own totally and have full rights over. 
  • A customized software tool meets a business’s specific demands, which allows for more significant productivity, scalability, long-term investment, and more outstanding quality of service.

As a result, custom software is generally a more substantial initial investment, but the payoff can be significant. know when to invest in custom software development

How Do You Decide between SaaS vs. Custom Software?

In 2020, 90% of small businesses converted some aspect of their business to a digital format. This doesn’t even speak to the more giant corporations investing millions in big data, IoT and AI.  So, it is a must to develop your business to cope with all these changes. Therefore. Kapsys helps you have a decent understanding of the main differences between SaaS vs. custom software solutions. So, here are some factors to consider when choosing between SaaS vs. Custom Software:

What is your budget?

Your budget will be the most important indicator of which choice is the best one for your company right now. Custom software can cost more than SaaS software. So, first, list your business requirements and consult a company about the cost of custom software development. Considering buying custom software solutions should be a rational decision. 

What is your timeframe for this tool?

Custom software is not your best choice if you need a quick software solution. On the contrary, it is a perfect solution, except not for instant solutions. It takes a long time compared with the service as a software (SaaS). 

What is your exact problem?

First, Identify and prioritize your problem and business needs. Then, consider the software features and functionalities before buying it, whether SaaS or custom software. Without the proper features and functionalities, enterprises cannot achieve their desired development. If the SaaS solution does not meet all the business’s functionality needs, it might be time to meet with a software development company and consider building a custom solution. 

What are your future goals?

When you choose the right solution for your business, don't just think about the software solution for now. But, you should consider the long term. So, first, ask yourself how this solution will help your business develop and achieve your goals over the coming years?  How can you develop this solution to align with business variables over the coming years? Will this solution be able to adapt and change as your company grows and develops? Finally, is it worth the time and cost to choose a solution that only needs to be replaced within a year? It is not easy to choose between SaaS vs. Custom Software. Learn more by reading Benefits of Small Business Custom Software Development

Conclusion of  SaaS vs. Custom Software

You are the only one who can determine your business priorities and needs. Unfortunately, it's not always easy to know which software option between SaaS vs. Custom Software is best for your business. Will you benefit more from off-the-shelf, SaaS or custom software? However, business owners can know how important software is for their work by asking several questions. Does it make your team more efficient? Will the software allow them to focus energy and time? Does the software you use in your business save money? Does it improve the customer experience?  Kapsys can help you find the best software solution for your business. Kapsys is the best custom software development company. We have developers with incredible skills to help you select the solution you need. Thus, hiring a software development house like Kapsys will be essential to level your business up. Contact us to find out how we can help you.