In today’s world selecting the right software solution can make or break a business. In this blog, we will discuss all the pros and cons of SaaS and traditional software, which will help you make the best decision to bring your business forward.
SaaS:
SaaS is known as the Software as a service. It is the software delivery model. SaaS benefits by hosting on the provider’s servers and getting access through the internet. It belongs to the category of cloud computing. In this software, the client can use different SaaS products or software to manage all of its business problems. It works on a subscription basis. It means that the user has to pay some sort of subscription fee for using these SaaS products.
Examples of SaaS products include:
- Google workspace apps
- Hubspot
- Zoom
- Netflix
- Trello
- Microsoft 365
- Salesforce etc.
With the term traditional software, We mean the softwares that need to be installed directly on to the client’s compute hardware. These traditional software are usually purchased through one one-time license fee.
Examples of these traditional software include:
- Microsoft Office ( Pre office 365)
Adobe Creative Suite ( Pre-creative cloud
SaaS vs Traditional Software:
Let’s discuss the areas where there are differences present between the traditional software and the SaaS products. The first and foremost business software comparison is their cost structure. SaaS products usually work on the principle of subscription fees. In the case of a subscription, you have to pay a fee monthly or annually. Free trials of these software are often available. Whereas the traditional software works on a purchase model. It means you have to invest a huge amount initially in that software to purchase it. One of the benefits of this cost structure is that the software can be used for indefinite times after a single investment but it also has a negative aspect as well that you have to invest more money for maintenance and upgradation of course. Another main aspect of business software comparison is that these software types greatly differ is their deployment and access. Deployment means the time by which the software will be available for use by users. SaaS products have generally quick deployment time, and users can easily access them through web browsers. In short, there is no need for time-consuming installation processes. In contrast, the traditional software needs a lot of time for their installation process. It could be a complex process and needs a person who has some technical understanding. These software are only accessible on the devices or computers where they are installed. This type of software does provide benefits in terms of security but no doubt it could be very time-consuming as well.
SaaS products and traditional products are also different in terms of maintenance and updates as well. In the case of SaaS products, the service provider is responsible for all the updates and maintenance processes. It means that the user is free from the technical burden and the user will always have the latest and most secure and updated version of the software. On the contrary, for traditional software, the user is responsible for all the maintenance and updates of the software. The user will troubleshoot all the issues and ensure the software’s compatibility with other hardware and systems. If you want to use traditional software for your business, you have to make sure that you have a professional and technical person to handle all the problems of this software.
If you are deciding on choosing software for your business, data security and compliance parameters should be your top priority. In SaaS products, data is secured and saved on the provider’s server and in this way, the data security is completely the responsibility of the service provider. Whereas, businesses that use traditional software have direct control over their data security. This control over data needs investment in security infrastructure that could be costly.
Here are some pros and cons of SaaS products and Traditional software for business. The table below will guide you well about the business software comparison.
| Benefits of SaaS software for business | Benefits of Traditional Software |
| Subscription Fee | One time fee |
| Free trials are often available | Free trial not available |
| All updates are automatic | Some updates are automatic |
| No separate cost is required for the update | A separate cost is required for the update |
| The service provider is responsible for data security | The business itself is responsible for data security |
Decision:
The conclusion or decision of whether you should go for SaaS products or traditional software depends upon different factors.
If your business requires flexibility, ease of use, and most importantly, wants to trust the third-party provider, then you should go for the SaaS products. Whereas, if your business prioritizes long-term cost-effectiveness and does not want to involve a third party then you should select the traditional software. Some businesses want to adopt the hybrid approach. A hybrid approach means they want the combination of SaaS products and the traditional software, In this case, the percentage proportion is required and you have to decide according to your needs. Want to learn more about the SaaS products? Head toward our blog section to increase your knowledge!
