For whom a store based on SaaS? For whom to purchase a license?

An online store can be operated based on an e-commerce platform delivered and maintained in a SaaS model, as well as based on software purchased under a proprietary license.

So is SaaS for startups and small, and should large entities order a dedicated solution? Tomasz Tybon of Dreamcommerce - a company that offers both types of solutions - dispels myths about both models.

The available e-commerce platforms needed to set up and run an online store differ not so much in the scope of functionality, but in the way they are made available to customers. Online store software providers offer them in a software license or SaaS model. In the former, the purchaser simply buys a copy of the application from the provider, either on physical media or as a digital download. In the second model, known as Software as a Service (SaaS for short), the software is rented from the provider and the user pays recurring subscription fees, usually monthly or annually, for the duration of the contract. An example of SaaS is the Shoper platform.

In which situations will SaaS work better, and in which situations will an in-house application work better? What are the benefits of using in-house software versus renting?

Leased service model or SaaS

In the case of software offered in a service model (SaaS), all responsibilities related to infrastructure maintenance, software updates and technical support are handled by the service provider. The entrepreneur does not bother with technical issues: whether to rent a virtual or dedicated server, which hosting plan to choose. The store is practically available on the spot, you just need to fill out a form on the provider's website, enter the products and you can start selling. The e-commerce software is automatically updated by the provider, so that the client receives both tools to improve the functionality of the platform and its security on an ongoing basis. The software as a service is easy to use and configure. It is offered as a package with specific functionality and content, which, if necessary, can be modified by ordering a more advanced package, adding custom features or more server space, etc. In the case of a SaaS platform, an interesting and important feature is the option to test it free of charge for a certain period of time before the final launch of the store, which allows the customer to evaluate the functionality of the platform and understand the principles of management.

Boxed or dedicated solution

In the case of proprietary software, the technical tasks are transferred to the entrepreneur. By purchasing a "boxed" license of e-commerce software he becomes its owner with all the "benefits of inventory". He gets full access to the source files, which allows him to modify the software for the very specific needs of a given business and add his own customized solutions to it. To implement the platform, however, it must first have a server and a hosting plan. These, in turn, usually have to be purchased separately, keeping in mind such important things as that the server meets the technical requirements of the software, such as supporting certain types of scripts. In a word, the client has to reckon with additional costs and areas related to the development of the platform, which must be taken care of whether they concern the technical-functional or visual side of the e-shop.

What to choose...

A SaaS platform enables a business to get up and running quickly without lengthy implementations and significant financial outlays. This makes it an ideal solution for entrepreneurs who care about achieving their business goals relatively quickly. The SaaS model is also more likely to be used by those who, for various reasons - e.g. lack of time, experience, technical background, limited budget - can't or don't want to maintain e-commerce software themselves. With the development of the cloud technology market and the emergence of more innovations in this area, SaaS solutions have become more versatile, stable and flexible. Especially the last feature needs to be emphasized, because it allows the software to be tailored to the needs of a specific business. All this makes this model increasingly popular with small, but also the largest companies.

Proprietary software is sometimes a good choice for entrepreneurs who have experience in running web projects and have their own resources of programmers and time. In practice, they are quite often chosen by larger companies that can afford to make permanent financial investments in IT infrastructure and those that already have one. In such organizations, the realization of business goals can be spread over a longer period of time, moreover, they are able to delegate an employee or a team of employees solely for technical support of the e-commerce platform. This is because examples of such work - programming, graphic design or webmastering - are typical tasks for the IT department.

While the stereotype says that SaaS is a solution for startups or small entities, and dedicated software for larger ones - in practice, there is no reason why larger companies should not also use SaaS solutions. Before choosing a specific model, it is worth asking yourself: how much time can I devote to technical activities? And do I really want to spend it on optimizing the e-store, troubleshooting and servicing the software, instead of focusing on sales, planning promotional campaigns and building relationships with customers?

In terms of functionality, there is usually not much difference between software in a service model and a licensed model. The final shape and functionality of the e-commerce platform in both cases depends on the e-commerce owner and his decision on how to expand his business. In this context, the scalability of the service, i.e. the ease of implementing additional modules (applications) and integrating non-standard functions, as well as the comfort of doing business, becomes important. Often, along with the software service, one also gains a whole package of benefits - the ability to take care of more areas within the framework of one service provider: purchase of a domain, technical support, legal assistance (e.g. in creating store regulations), ready integrations of online payments, warehouse and courier systems, and a whole range of sales support tools, such as AdWords campaigns or a Facebook store.