Key differences between Saas platforms and regular software applications

A SaaS (Software as a Service) platform is an innovative, cloud-based model where applications are accessed through a client over the internet, rather than through traditional software downloads.

Its unique value lies in its flexibility, scalability, and cost-effectiveness, providing accessible solutions that can evolve with the ever-changing needs of a business.

Saas is quite different from regular software because of its distribution paradigm: instead of downloading the app, you now just connect to the internet. No heavy client is required anymore. This distribution format made it hugely successful, making it gradually adopted after the 2010s.

Let's now delve into the differences between both families of software.

Pros and cons of Saas vs. regular software apps

The shift to SaaS from traditional software marks a significant change in the technology landscape, promoting flexibility, and cost-effectiveness in business operations. This shift occurred around the 2000s with companies like Salesforce (founded in 1999) and Netsuite (founded in 1998).

One of the key differences between regular software and SaaS is that the latter operates on a subscription model, often on a monthly or annual basis, whereas regular software usually requires a one-time upfront purchase.

SaaS platforms also handle activities like maintenance and upgrades, which can reduce the burden on the user's IT infrastructure and save significant time and costs.

Moreover, SaaS platforms provide automatic updates and patches at lower upfront costs, while in regular software applications, users need to manually install the updates or newer versions which often involve licenses.

To summarize, the key differences between Saas and regular apps are:

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Should I build Saas or traditional software?

This is definitely a million-dollar question.😅

There is absolutely no right answer to it, you should build the type of app you feel more comfortable about. However, if your goal is to sell your service via the app, be aware that there is a surge in SaaS adoption which has been highlighted by a recent BetterCloud research: it revealed that 73% of organizations affirm nearly all (80%+) of their apps will be SaaS by 2021.

Here is a simple method to decide whether to build Saas or regular software:

• Your customers prefer continuous updates: opt for Saas.
• Your customers need real-time collaboration or data-sharing capabilities: go with Saas.
• Your customers want to easily access the service from anywhere: prefer Saas.
• Your customers want a product that just works without having to regularly update: favor Traditional software.
• Your customers don't want to pay your service monthly: go with Traditional software (or create a one-time payable version of your Saas, equalling the LTV of the subscription one).
• Your customers want full governance over their data: favor Traditional software.

You should not be fully aware of the differences between Saas and regular software and may be able to decide which one suits you best.

That's all for today folks, stay tuned with Stimpack, your early-stage product growth platform 🤗