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App Development
5 minutes read

Custom Enterprise Software Vs SaaS

By Robert Kazmi
By Robert Kazmi
App Development
5 minutes read

The custom enterprise software vs SaaS debate has been heating up for some time now. Large enterprises are constantly being faced with important choices all the time, and selecting the right software tools to support business processes is one of them. 

The enterprise software market has many different options. Thanks to the different enterprise SaaS solutions, companies can choose the one that best suits their needs. This has many benefits, but it also makes it hard to find the right alternatives. 

Many companies often find that purchasing software is not as easy as it seems. That is why many end up building their own enterprise software. Custom software is a great alternative, but it is important to understand if its benefits outweigh those of a traditional SaaS solution before embarking on it.

In this post, we discuss the main differences between custom enterprise software and SaaS software so that you can choose the one that is best for your business. Both are great options, but depending on your needs and resources, one or the other may suit you best.

Custom Enterprise Software Vs SaaS In a Nutshell

When it comes to choosing the best software for your business, there are two important options to choose from: enterprise software and Software as a Service (SaaS) solutions. Each option has its benefits and drawbacks, so weighing the pros and cons is critical.

The Pros and Cons of Custom Enterprise Software

Traditional enterprise software through a SaaS solution often falls short when addressing specific business needs. Not all companies are the same, so their requirements may vary. Sometimes specific software features are needed. When this happens, the alternative of building a software solution tailored for your business processes tends to be the best choice.

Custom enterprise software has the benefit of solving specific issues that are often not addressed by the SaaS model. Because Software as a Service focuses on popular features, hyper-specific use cases are often neglected. In other words, SaaS software falls short when it comes to issues that fall away from the norm. This is sometimes the case, even with solutions that brand themselves as enterprise SaaS.

On the contrary, custom enterprise software is specially designed to address your specific business processes. Because most companies do not have the skills to build such a product, they usually hire custom app development services from a third party.

 By doing so, large enterprises can gain important insights that are necessary to build the enterprise software they need; product ideation and product discovery workshops help with this. The challenge with this option lies in finding the right business partner. Not all software development companies might be a good fit for yours.

Additionally, consider that building enterprise software can be expensive depending on what you need. However, if done correctly, custom enterprise software will surely help you increase your bottom line in the long term.

The Pros and Cons of Enterprise SaaS

Software as a Service is a great alternative for large enterprises that need to optimize their business processes as long as these last fall under the scope of the SaaS model. Put differently, enterprise SaaS solutions are great if what you need to achieve can be done through an existing SaaS software.

The enterprise market has seen many SaaS solutions that offer a great deal of flexibility. However, it is important to validate first that the alternative you choose has the right integrations for your existing IT systems. If the enterprise SaaS you are looking for does not have the integrations for your systems, you might be heading towards a dead end.

One of the best things about most SaaS solutions is their use of cloud computing tools. Enterprise SaaS can offer cloud features that make work easier by using them. Without a doubt, this will positively impact your business processes as it can make your work pipeline more collaborative. Enterprise software can also make use of cloud computing through cloud app development.

Price is also an important factor. Enterprise SaaS alternatives tend to be cheaper than custom enterprise software. The former allows you to choose what you need from a list of options through a flexible pricing model. Unless you need something concrete, this might be ideal for your company. 

Lastly, another aspect to consider for an enterprise SaaS is software maintenance. When you choose an enterprise SaaS alternative, the maintenance process will be the responsibility of the software vendors. You can hire a third party to perform QA tests when using enterprise software.

The Cost of Building Custom Enterprise Software

Traditional enterprise software like Enterprise Resource Planning (ERP) tools are great for common business processes. However, these often fail to solve specific problems even if the software licensing costs are high. This is one of the main reasons many companies build their enterprise software.

If you are considering building your own enterprise software, analyze the costs associated with the entire process. Take into account that it probably won’t be cheap, but it will surely help you solve your company’s specific problems.

If you want to find out more about the costs of building a software solution, we recommend you read our resource on the subject.

Final Thoughts on Enterprise Software Alternatives

Ultimately, choosing the right alternative depends on important factors like your specific business requirements and your available resources. If you have a limited budget and your requirements are likely to be addressed by an enterprise SaaS, then this might be your best option. Otherwise, if you have the available resources and want to build a solution to specific needs, custom enterprise software might be the alternative you need.

Whatever the case is, make sure to find a solution that helps you optimize your business processes. Start by finding an experienced development partner that will help you integrate your processes to the software you choose and leave behind the enterprise software vs SaaS debate.

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