Recent years have brought with them advances in Internet technologies and cloud computing that pose the questions: Is it better to buy and host my own software on my own hardware? Or should I rent space as a “tenant” from an outsourced Software as a Service (SaaS) business?
The answer to that all important investment questions depend on a large set of factors native to your company’s business volume and your technical and financial resources.
Let’s take a closer look at SaaS. Software as a Service, sometimes called On Demand, came about as a natural, next step from the Applied Service Providers (ASP) of the ’90’s. ASP solutions were typically third party software technology hosted at a centralized computing location. Nowadays, smart, agile companies are hosting and doing their own development, too.
SaaS is a software delivery model in which an application and its associated data are hosted centrally. Delivery typically occurs via the Internet where users interact with the application using a “thin client”, often a web browser. Instead of purchasing the software outright, users subscribe or lease it in exchange for monthly or annual payments. The SaaS delivery company is responsible for all aspects of operating and maintaining the software.
A self served software solution (say that 5 times fast!), on the other hand, is owned and hosted by the company that uses the software. Users buy full ownership of their license to use the application. It’s up to them to prepare the application’s intended hardware platform, install the program and run it.
Who doesn’t love a good comparison chart?
| Criteria |
Saas Solution |
Self served Solution |
| Payment Schedule |
Monthly payments. |
One time payment. |
| Authority |
A user doesn’t own the application; therein, they have no power over it. |
The buyer owns a license to use the software with full ownership rights. |
| Updates |
SaaS software providers supply users with new updates to the program, so the user bears no financial burden for updating the software. |
Software developers provide software owners with new updates for an additional fee. |
| Hardware |
Use of hardware at the provider’s location is included in the user’s monthly payment |
Software owners must supply their own hardware. They either buy their own servers or use the servers of third party hosting providers. |
System Functionality
and Support |
SaaS providers are responsible for system functionality and offer their users additional technical support. |
Software owners are responsible for system functionality. However, technical support is often provided by the software developers. Depending on the company, technical support may be free or require additional fees. |
Customization vs.
Configuration |
Users can’t alter application code to customize the software or add new features in accordance with their business needs. Users can configure adjustable parameters present in the design, but the program code is the same for all users. |
Software owners can modify or customize the system according to the needs of their business. Owners can do this themselves or ask the software developers to provide a customized solution tailored to their business. |
| Security |
SaaS providers are responsible for system security, however usually providers don’t guarantee full protection and data security. |
Software owners are responsible to keep their servers safe from security concerns. If they’re using a third party hosting, they’re reliant on that company’s security measures. |
| Data Storage |
Users don’t retain control over their data. They can’t make reserve copies and have no access to the server. Their data can be re-sold or used by third party networks etc. Users may choose to spend extra money on SaaS data escrow (data storage with an independent third party) that allows them access to copies of their data. |
Software owners have full access to their data and are in total control of what happens to it. They should and can make back up copies and may, themselves, profit from making it available to third-parties. |
| Speed and Performance |
Users access the software via Internet browser. System performance depends on the speed of the provider’s hardware. |
If system speed needs to be increased, software owners can always add additional computational resources. |
| System Load |
When system load is increased, the user can buy additional capacity from their SaaS provider without having to make investments in new hard ware. For instance, they can purchase greater capacity for larger volumes of ad impressions per day. However, the SaaS provider might not have the capacity a user needs. Users can’t buy more than the provider can offer. |
Hardware purchase decisions are critical. When system loads go up, software owners require the flexibility to adapt to necessities for system architecture changes and load balancing among several servers etc. |
So you see, there’s quite a bit to mull over. Ultimately, the right solution for any given user’s business depends on their needs and resources.
For instance, say you have a small website which only manages 1,000 – 2,000 ad impressions a day. An SaaS solution would be perfect for you. Let the SaaS Company handle the headaches and hardware investment.
However, SaaS solutions can become a bit more costly when the provider has to divert a lot of computational resources to just your business. Big companies and ad networks will probably require greater resources, higher performance, increased reliability and security and more “tweak-ability” than an outsourced, one size fits all configuration and hosting can offer.
Best practices are to take a good long look at your priorities and system requirements when making this decision. Once you’ve nailed those down, you’ll be in a better position to evaluate your relationship to the pluses and minuses of both kinds of software solution.
OrbitScripts can provide the software solution that’s best for you. We offer both SaaS (Orbit Ad SaaS) and highly customizable, Self Serve systems (Orbit Ad Server and Orbit Ad Market) for your ad serving and management needs. Let us help your business sort through the ins and outs of this very important investment!
Please feel free to contact us for more details.
Tags: saas applications, saas software, saas software as, saas tools, self served, self serving, software as a service
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