Do SaaS or Non-SaaS? Developer Guide

As soon as software development entrepreneurs decide to create applications for new types of business, they should ask themselves the question: does it really make more sense to create software as a Service (SaaS) or is it better to make a boxed product.

This decision will ultimately greatly affect the value of the company. SaaS companies are now much more likely to be supported by venture capital. But for everyone there is enough space in the world of software production.

Here are the main guide points to help make this choice:

Facts for SaaS

1. SaaS provides periodic, predictable revenue. There is no seasonality factor; on the contrary, your customers will pay you all year round for using the value you provide.
2. You can update your software without redeploying. In fact, you can deploy and test in the living space (if you are 100% sure of your development!)
3. It is much easier to create a platform piece by piece in a living space than to immediately create a whole platform and deploy it at a time.
4. You have the ability to collect data about your users in real time. Getting immediate information about the actions of the users of your software helps you to foresee what they need next and how to better serve their needs.
5. SaaS can be cheaper than once deployed software. (Of course, there are exceptions!)

Facts vs. SaaS

1. SaaS requires specialized billing software. Such as CheddarGetter [Periodically charges a subscription fee from credit cards through your account in Authorize.Net. I'd take a closer look at Paypal subscriptions. Note:] (Full Disclosure: I work for CheddarGetter, which is why I think this is the best software of its kind.)
2. There is no channel for sales (as retail chains), then you have to sell yourself through the web.
3. Since there is no evidence that data transmitted via the Internet is less or more secure than data near your workplace, some companies are not yet comfortable with SaaS.

Facts for the box software

1. If the software is designed to be “one-time” in nature, it probably should not be SaaS. A good example is design software for home users.
2. Software requiring real-time processing of an immense amount of data may not work as SaaS. For example, extremely large customer stunts on databases with a high level of regressions may need to be box software.
3. If the software is designed around the customer's hardware, it is likely that it will not work as a service.
4. If the information in the system is very sensitive (as completely secret data), it is probably not the right thing to do with this SaaS.

Facts vs. Boxed Software

1. Someone will have to install it on each client PC. I have done this in the past - it is hellish pain and takes a lot of time, even using remote access.
2. Upgrading is a major headache (see above).
3. Sales channels for boxed software are becoming increasingly consolidated and difficult to penetrate.

Ultimately, deciding whether to develop SaaS or packaged software, the question boils down to: “What will work for my target customers?” In the space where I spend my time, SaaS is what you need, but your space may be different.
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Jonathon Schuster, Sproutbox Development Director