What is the Difference between Custom Software Development and SaaS?

1. What is the Difference between Custom Software Development and SaaS? Custom software development and SaaS (Software-as-a-Service) are two approaches companies consider while discussing software development. Custom software development services have been around for long. On the other hand, SaaS is relatively new and evolving. Hence, most companies prefer a tested and proven custom software development approach and partner with a software development company in SA. However, one cannot discount the growing demand for SaaS either (the market for which may surpass the USD 700 billion mark by the decade's end!). Thus, whether bespoke software development or SaaS, both are in great demand. But what is the difference between both? Let’s discuss it in this blog. What is Custom Software Development? As the name suggests, custom or bespoke software development refers to designing and developing software applications tailored to fulfill a business’s unique needs. Customized software applications have features and functionalities integrated into the business’s requirements. Since they are designed with the company’s needs in mind, they prove to be more efficient and contribute positively to the business’s productivity. The purpose is to derive optimum value from the investment. Bespoke software helps to achieve these objectives with everything designed exclusively for the company. What is SaaS? So, what is SaaS? Software-as-a-Service (SaaS) is a cloud-oriented application delivery and usage model. In SaaS, users pay for the software application on a subscription basis based on the number of features, functionalities, and licenses they use. SaaS is fundamentally software that a provider company sets up and hosts. That company will provide its client access to the application on an ongoing subscription basis. A few popular SaaS software include Mailchimp, SurveyMonkey, Asana, and Canva.

2. Some features of SaaS include flexibility and scalability, cloud-based application hosting, a marketplace of integrations, a simple cost catalog, and seamless implementation. Pros and Cons of Custom Software Development Custom software development is a tried and tested approach. Today, the world knows how helpful custom software development services can be for their business. Having a bespoke software application can benefit an organization in various ways. But while looking at the benefits, we will also review some cons of custom software development. Advantages of Custom Software Development So, here’s how a bespoke software application can work to your advantage. Customization A customized software application is fully stitched to your business needs. Customization refers to aligning the application with your existing workflows, customer needs, process requirements, and overall objectives. Hence, the application delivers the desired efficiency and contributes positively to departmental and organizational productivity. High Security Custom software is more secure, as it is designed and developed per the organization’s data security requirements. For instance, a software application may have user-authority-based access multi-factor authentication, or both, depending on the company’s and its industry’s security needs. Scalability Another significant advantage of bespoke software is scalability. A business’s needs evolve with time and technology. Data volumes and transactions may grow over time, requiring the application to cater to the ever-changing landscape. Precisely, it is here that scalability comes into the picture. Customized software is designed to scale as the need be, thus accommodating changes and aligning itself with the business’s requirements. Increased Efficiency As mentioned earlier, bespoke software applications are customized to a business’s needs. It has features, functionalities, and integrations per the company’s requirements. Hence, it is evident that the software product delivers higher productivity. Product Ownership An off-the-shelf software remains the developer’s product. You can only use it as a customer. However, with a customized software application, the ownership remains with the company using it. Hence, you have full control over the application. Disadvantages of Custom Software Development On the flip side of the coin, custom software brings some disadvantages. Here are some.

3. Time-Consuming Crafting a software application to one’s needs takes time and extensive effort. Depending on the customization expectations, needs and levels, developing a personalized software application can take time and involve considerable costs and effort. Let alone the resources involved in testing, implementing, and finalizing the application. High Initial Investment Custom software development involves a high initial cost. Although it is worth paying the value, it could prove a little challenging for small businesses with limited resources. Dependence on Developers Based on the complexities involved, customization can become challenging. Accordingly, when it comes to developing tailored software applications, companies have to depend significantly on the developer’s expertise, experience, and customization capabilities. Exorbitant Maintenance and Server Costs Everything is unique about a custom software solution, including its server and maintenance requirements. An exclusive server and maintaining and ensuring regular upgrades and updates can involve a significant cost. Pros and Cons of SaaS Let’s now overview some advantages and disadvantages of SaaS. Advantages of SaaS Some benefits of using SaaS include the following. Cost-Effective Upgrades SaaS product upgrades are quicker and cheaper. This is because SaaS providers grow based on community intelligence. A particular issue may have been experienced by various other users. Hence, you’d have a readymade solution. However, it also fosters continuous development and thus ensures competence. Quicker Deployment SaaS features quicker deployment. Businesses with a test-driven approach will experience the early user advantages of a particular new product and measure its effect. Flexibility With a SaaS product, you can change the subscription plan and add or remove features and functionalities based on your needs. Thus, you always only use what you need. Financial Productivity SaaS acquisition proves more financially productive. This is because SaaS’s cost falls in the OpEx category (short-term costs), while custom software development is usually considered CapEx (long-term investments).

4. Disadvantages of SaaS SaaS has a few disadvantages as well. Before choosing between custom software development and SaaS, you should also consider reviewing the cons of SaaS. Minimal Customization Ownership core code isn’t with the user organization. Hence, customization remains minimal. Many features and functionalities will have to be used as provided by the SaaS provider company. Since extensive customization isn’t possible, the solution may not prove as productive as expected. Provider-Controlled Database As the SaaS solution belongs to the provider, the data businesses generate are stored in the provider- controlled database. Any issues with the database may directly impact the business’s data, exposing it to a potential risk. External Solution SaaS is considered an external solution. Hence, many organizations usually deem an internal, specific, and customized solution to be more secure. Legal Challenges While dealing with a SaaS solution, any legal action will have to fall under the national laws, rules, and regulations of the provider’s country. Custom Software Development Services vs SaaS – What to Choose? Of course, the choice depends on your requirements, budget, and expectations. While custom software is more specific and designed to deliver better results, SaaS solutions are usually more cost-effective. If your needs are more specific, security requirements are more critical, and you have a considerable budget on hand, you may go for custom software development. If not, and you need a handy solution to cater to your limited requirements, you may opt for SaaS. However, in some cases, if you are company unsure about your needs and which approach to choose, consider partnering with a custom software development company in SA like FABTARY. The company’s consultants can help you make the right choice after a careful and comprehensive review of your needs. Write to FABTARY for info@fabtary.com to explore the company’s software proposition.