SaaS or in-house e-commerce software

An online store can be run based on an e-commerce platform delivered and maintained in a SaaS model, as well as based on software purchased as a standalone, proprietary license. Which model to choose? Why do some choose to use their own software, while others use a complete cloud service?

One of the key differentiators between today's e-commerce platforms needed to set up and run an online store is not so much the range of functionalities, but how they are made available to customers. Online store software providers offer them in a traditional and SaaS model. The first is a well-known form of software licensing, requiring no further explanation - the purchaser simply buys a copy of the application from the provider, either on physical media or as a digital download, paying a one-time fee. In the second model, known as Software as a Service, the software is, as it were, rented from the provider, and the user pays recurring subscription fees, usually monthly, for the duration of the contract.

Does choosing the right version matter? In which situations will SaaS work better, in others - a proprietary application? What are the benefits of using in-house software versus renting?

Model differences

With SaaS software it's a bit like leasing a company car - it's an alternative to buying a vehicle. When you use a leased car, you pay a fixed rental fee for a certain period of time, and you just make sure that the tank doesn't run out of fuel - and visit the car wash from time to time. Repairs and keeping the vehicle in good working order are the leasing company's responsibility.

The same is true for software offered in a service model - 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 a ready-made solution, available off-the-shelf - basically, all you need to do is fill out a form on the provider's website and you can start your business. In addition, the e-commerce software is automatically updated by the provider, so the client gets both tools to improve the functionality of the platform and its security on an ongoing basis.

Software-as-a-Service is easy to use and configure, as it is offered as a package with specific functionality and content. If necessary, the customer can order a more advanced package, including additional non-standard features, more server space, a larger product catalog, etc. Particularly valuable in the case of a SaaS platform is the option to test it free of charge for a certain period of time before the final launch of the e-shop (this possibility is offered by Shoper software, among others). This allows the client to assess the functionality of the platform, its capabilities, operation and management.

In the case of proprietary software, the technical tasks pass 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, often need to be purchased separately, while keeping in mind such important matters 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 regardless 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 off the ground quickly without lengthy implementations or significant financial outlays. This makes it an ideal solution for smaller or start-up entrepreneurs who care about achieving their business goals relatively quickly. SaaS is also more likely to be used by those who, for various reasons (for example - lack of experience, specialized knowledge, technical background, limited budget or... time), can't or don't want to deal with the maintenance of e-commerce software themselves.

Proprietary software seems to be a good choice for entrepreneurs who have experience in running Internet projects, can define precise technological requirements and have their own resources of programmers. They are more readily chosen by larger companies that can afford to invest financially 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.

...And how to choose?

In terms of functionality, there is not much difference between software in a service model and a licensed model. The final shape and functionality of the e-commerce platform depends on the user - the owner of the e-store 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, gains in importance. That's why it's so important to choose the right software provider, with an established market position and many years of experience. A supplier who we can be sure that the services he provides are at an appropriate, guaranteed level, and who will not leave us alone in case of technical difficulties.

With the development of the cloud technology market and the emergence of more innovations in the field, the quality of services provided has also increased. SaaS solutions have become more versatile, more stable and more flexible - especially the last feature needs to be emphasized, because it allows the software to be tailored to the needs of a particular business. All this means that software as a service is increasingly being used by the largest companies as well.

Before choosing a particular solution, it is worth asking yourself, "How much time can I devote to technical activities?" It's worth remembering that more time spent optimizing your e-commerce site, troubleshooting and servicing your software means less time for making sales, promotional campaigns and building customer relationships.