Friday, 09 February 2018 09:18

Enterprise Software vs. Software-as-a-Service Featured

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As a result of the utility that association management software provides membership organizations, business entities have consistently had to choose between enterprise and software-as-a-service (SaaS). Association management software is any computer program that provides an entity with the support it needs to conduct business activities. These tools aid in record keeping, payment processing, communication, hosting resources, among others. The stark difference between the two is that SaaS is conventionally available for rent whereas enterprise software has to be bought then installed on the company’s servers. SaaS requires the internet and access is from ‘the cloud’ on a multi-tenant platform (where a group of companies operates from one database). However, the distinguishing characteristics stretch beyond this to encompass broad categories like customizability, price, querying and reporting and functionality. Let us expound these categories further.

1.    Customizability

Enterprise software takes the lead on this one since it is customizable, unlike SaaS. Ownership of enterprise software comes with the advantage of being able to customize depending on the software needs of the organization. Since SaaS is only available for rent, users depend on the ingenuity of the service provider. Also, its multi-tenant characteristic simply renders pure customization impossible; customization for one company results in a variation of the entire database which is also used by other companies. 

2.    Price

The pricing model for enterprise software puts into account costs of customization and software licensing and maintenance while SaaS’s model only considers services and rent. Purchasing software requires higher initial costs than renting, making enterprise software much more expensive. Entrepreneurs who choose SaaS will be able to spread costs instead of every expense being frontloaded into a year. Ladies and gentlemen, SaaS wins this round. 

3.    Functionality

Among the two, which one is most suited to fulfill an objective well? Well, this depends on the software’s customizability and, as we mentioned earlier, only enterprise software is customizable. Due to SaaS’s limited customizability, it may not always be able to meet the software needs of the organization. However, enterprise software can be updated, for example, by adding a new entity or field, to keep up with functionality requirements. Another point for enterprise software. 

4.    Querying and Reporting

SaaS loses the final round since it is challenging to field reports and queries on a multi-tenant platform. A report or query, when collecting data, would need to scan the database in its entirety. The processing overhead that this would impose on a multi-tenant platform would be massive enough to disrupt normal business operation for other tenants. For SaaS to be shareable, therefore, developers have had to limit reporting and querying functions available to the users. The same cannot be said for enterprise software which has third-party tools at its disposal for the sole purpose of reporting and querying.






Read 122 times Last modified on Friday, 09 February 2018 09:49

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