Difference between Enterprise Software vs SaaS

Software Technology is a broad arena that involves a sea of new-edge technical services and jargon that very few people are familiar with. Everyone might know about the latest technology advancements occurring every day but their implications are unknown to many. Businesses have inconsistencies and incompetencies with all IT tasks being used interchangeably and not working well for the business. When addressing these business implementations, this is a common occurrence. Businesses often mix up enterprise software and standard software solution development and interchangeably develop some third object.

To bust this myth and clear the confusion, we have decided to clarify and differentiate the most common misconception of enterprise software development and traditional/conventional software engineering.

1. What is Enterprise Software Development?

The name Enterprise application software (EAS) suggests what it actually is. EAS is a form of software that is designed to meet the needs of a company rather than addressing individual user needs.  This is a holistic approach that targets domains and industries specifically individual small and medium businesses, internet-based consumer organizations, associations, industries, and other legislatures examples of such entities.

Any company has its own set of requirements, and businesses design software applications to meet these requirements. An Enterprise software solution, also known as an Enterprise software program, is a software solution that handles an organization’s requirements and functions.

Some of the examples of enterprise development software are CRM (Customer Relationship Management), BI (Business Intelligence), logistics and order delivery, online payment collection, and accounting are only a handful of the features that an enterprise software development company encompasses.

2. What is Enterprise SaaS?

Enterprise software is software that the company purchases and runs on its computers. SaaS software, on the other hand, is software that you “rent” and that is hosted “in the cloud” and accessible via the internet. Furthermore, and perhaps most importantly, SaaS offerings are typically multiple business entities, implying that many entities are using the same database.

Any standard software development means this software will cater to the needs of an individual department or a specified group of customers. Software as a service is a process where enterprises can develop software as per the unique needs of a specific group and that group is essential to the enterprise. Inevitably, all the software developed is an aid to business because they streamline and optimize most of their business tasks and is definitely useful for businesses.

In short, SaaS or customer-centric software is software aimed at the “general business customer, to put it briefly. It may. For example, eCommerce apps or a variety of web applications. These applications are, for the most part, ready-made, ‘standard issue’ devices.

3. Similarities Between the Two-Enterprise Software Development and Enterprise SaaS

There has been a lot of fuss regarding the usage and adoption of Enterprise software vs SaaS applications. Hence, we must know what makes both these entities similar and other businesses to have clarity on which one would benefit their business. Both this software have different audiences and focus areas and but there are a few points that both these entities offer. Enlisted below are a few aspects that encompass enterprise software vs SaaS.

3.1 Performance

Both types of software solutions ensure business performance and hence it’s an individual choice of business to select a chosen type of software development. Both the application guarantee higher performance and drive profitability.

3.2 Diversified Features

This is solely based on the development needs and how the business wants to progress with the developed software. However, depending on the needs, the features are predecided and integrated with the developing software.

3.3 Amplifies Productivity

Software development is a method to automate the mundane process and accelerate the existing legacy business. With both types of software development, efficiency is increased and businesses can get desired outcomes.

3.4 Cost-effective

Enterprise software is focused on large enterprises with unique needs that can be catered to via this multi-functional application. It is a one-time investment and hence it is cost-effective. On the other hand, EaaS caters to the need of a group of customers to their focus business needs.

4. Difference Between Enterprise Software vs SaaS

People have been dreaming of thousands of applications around them for over decades now. In reality, there is an app for almost everything we do in our day-to-day lives. The list goes on and on, from news and movies to health monitoring and automating records and checking errors. Both these types fall under these categories and as of now, we have seen both these applications have unique and different implications. We will now see what is the difference between the two and why businesses prefer enterprise applications more compared to EaaS.

4.1 Multidisciplinary

Enterprise applications are working on the business as a whole and not on a single department. Enterprise applications offer interoperability. When planning an enterprise product, keep in mind that the end goal of the app is to support the company in every way. Similarly, the theme is consistent with all of the company’s other applications. For data exchange, it is very important for two apps to get connected.

With interoperability, you can focus on multiple aspects of businesses. The new software should be able to connect with existing applications. And access their functionality as well as vice versa, resulting in increased market efficiency.

4.2 Ownership

When developing enterprise software, the ownership of the applications belongs to the client who has asked to develop an application. If we develop apps in-house then the ownership is never a question. But if we develop using the expertise of a third party then the owner comes into the picture. Usually, the third-party business signs an NDA and once the project is completed they offer complete ownership of the developed app, its source codes. And legal rights to the client in case of enterprise applications. In EaaS, ownership is not guaranteed.

4.3 Flexibility & Customization

This is one of the most important considerations for an enterprise software developer. The ability to customize and offer business scalability to enterprise applications. Obviously, from a futuristic purpose a company is supposed to expand, and with the expansion comes a slew of other changes, such as the facilities it provides and the number of customers it serves. With this in mind, an enterprise app’s architecture should be able to manage the expansion, at least in the near future.

4.4 Visibility as a Whole

Enterprise software allows you to see how the whole company is doing in real-time. To communicate the company’s results, you don’t need to pull a report from this program, create a spreadsheet from the details, and put together a slideshow. Since the design of enterprise software is built to support the needs of the organization. It can deliver strategic intelligence and actionable information.

You can also read: What is the Enterprise Software Development Process?

5. How to Choose the Right System Between Enterprise Software and Enterprise SaaS?

Switching to new solutions is not easy so we advise you to think about these questions first before making a decision.

  • Does your business need a solution that is highly customizable?
  • Are you able to identify the deployment scope of the existing application?
  • Is it the right time to update the IT infrastructure?
  • Are there any enhancements that you’d like to see in the app you’ve chosen?
  • Is there a provider you’ve chosen familiar with developing the desired type of apps?

To sum up, we know how much it bothers a business to choose the right software development service as as as it bothers to choose the right proof that software development service. The enterprise software market has outgrown the software world offering a variety of service offerings, solutions, cloud-based storage, and delivery models. While on the other hand, EaaS has a niche market and is been adopted by multiple parts of small and large businesses. While if we compare company size then ES is opted by majorly large size businesses with their unique needs while different departments of small and large companies can use EaaS for their business.

Itesh Sharma

Itesh Sharma is core member of Sales Department at TatvaSoft. He has got more than 6 years of experience in handling the task related to Customer Management and Project Management. Apart from his profession he also has keen interest in sharing the insight on different methodologies of software development.


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