04 Nov SaaS (Software as a Service) vs SaaP (Software as a Product)
In current time the digital world is evolving every single year. Many of us have now stopped purchasing physical products such as media for example, films and music. This is since there are services which give accessibility to libraries which hold up to a ridiculous number of movies and music. Instead of having to purchase products individually you can now pay a small monthly service fee which gives you access to stream and use them remotely.
This is also similar when regarding to software.
You may have heard about SaaS and are wondering why there is an increase of businesses now moving to a cloud service rather than packaged software which is becoming less popular. But what you want to understand is the best option for your business right?
So here you will find out all that you need to make that final decision for your company.
Software as a Product (SaaP)
Software as a product, or SaaP solutions, is a product/software which is made to be sold to users in which users have to purchase a License in order to use the solution and then host it themselves. To use the solution a stable internet connection is required but, in some cases, it can be used offline. SaaP solutions can be very costly since they are a one-time purchase, in contrast to SaaS, where you can buy a subscription that is paid monthly.
However, Software as a product can have additional costs whenever a software update is released but the cost will be less than the original price of the solution. In addition, some products may have new upgrades which are optional to purchase by the user but is recommended to purchase them as they provide you with additional features and more support.
Once a SaaP is installed, it is up to you and your business to ensure software maintenance. It is well known that ‘SaaP is static in nature’ meaning that it is crucial that a dedicated team is to manage and control software updates and data security. Otherwise, risks may develop.
Software as a Service (SaaS)
Software as a service, or SaaS solutions, are a monthly or yearly subscription-based solution. The solution allows you to store data via the cloud and is accessible through the web. These types of solutions are now popular with many businesses who are keen to grow and ensuring they are up to date with the latest software. The benefits of SaaS are endless for example, there are no hardware requirements, remote access, automatic updates, fully scalable and much more.
Let’s compare the two:
- SaaP: Microsoft Office 2010 – CD purchase, installed on a PC
- SaaS: Microsoft Office 365 – Monthly or yearly subscription, available via the web
When comparing the two of these solutions its clear that the SaaS solution comes out on top in today’s world. But why is that? SaaS enables productivity and efficiency when compared to SaaP this is due to maintenance, licensing and legal requirements are managed by the owner of the SaaS solution. In contrast, to SaaP, where you have to manually check for any maintenance such as updates and security. In addition, to having to host the solution yourself.
As previously mentioned, SaaS is a subscription-based solution. However, what happens after the end of your subscription? As the subscriber you are able to have the option to manage your subscription at any time, meaning that you can either cancel or renew your subscription with a third-party. SaaP in comparison has no subscription fee as it is a flat out pay up front. In addition, to having updates and upgrades which are an additional cost. Even though, as individual you may like the fact that the maintenance and security Is in your hands when using a SaaP, so is the need to keep the software secure from any threats, which is very time consuming.
Furthermore, the installation of SaaP to a businesses computers and network is time consuming. This is since it requires the solution to be installed on each individual computer. Whereas a SaaS can be purchased and installed from your fingertips in the matter of minutes due to being available via the web.
SaaS in the Long run
To put simple, with a SaaS solution, you are guaranteed a solution which is reliable to your business. SaaS solutions are on track with the way technology is evolving each day, being up to date with the latest technologies. The burden of making sure the solution remains functional and is at its peak performance all lies on the vendor. Updates and upgrades will be automatically added at release saving you the time and money. A SaaP solution will struggle to compete with a SaaS solution when trying to pick the best option for your business. The SaaP will supply your business with a bare minimum number of tools that it believes you will need to run the solution, meaning there is no technical support. Therefore, you’ll find that you are having to purchase additional upgrades in order to maintain the solution to meet the needs of your business.
The bottom Line
Software as a Service is clearly beyond a SaaP solutions time. Being more reliable and effective for a business in today’s world. However, there are many things to consider when selecting either a SaaS or SaaP software solution for your business. But due to technology today and how we can utilise it, it seems the better model is the SaaS solution.