According to statistics, today about 67% of companies around the world prefer cloud services to manage their finances. But the remaining third is in no hurry to move to the cloud, which is shrouded in usage myths. I decided to dispel the myths and talk about all the pros and cons of choosing one or another solution.
What are both solutions?
A boxed solution is a ready-made software of a third-party company, when using which support and further development is carried out by full-time developers of the software purchaser. Most often, management reporting automation solutions are developed on the basis of 1C.
A cloud-based (SaaS) solution is software that is developed and supported by a supplier, and the customer receives online access to it. We developed this solution together with the Financier service, which has already helped more than 2,000 clients in 7 countries manage their finances more efficiently.
The main difference between the solutions lies in the different business models used in the development and implementation. Almost all boxed solutions are built on the basis of 1C, the business model of which is built on large checks through personal product development for the client. There is no 1C-based platform on the market suitable for 10 out of 10 companies. Therefore, not every company can afford such a solution. SaaS development companies use the sharing economy business model. The solution is not developed for each client and is easily adapted to any type of business. Due to this, the cost of such services is low, which makes them accessible to everyone and directly affects a large number of customers. This makes it possible to invest more resources in improving the product. adding new features.
Now we can move on to a more detailed comparison of these solutions according to the main criteria.
Here are the myths, listed in random order:
- The cloud can save you a lot of money
- Non-cloud solutions are outdated and completely useless
- All enterprise software, workflows and applications should move to the cloud as soon as possible
- You must choose one of the market leaders and stay with him
- Cloud is not as secure as on-premises infrastructure
- Going to the Cloud Means Giving Up Your On-premises Servers and Infrastructure
- Below we explain why all these myths are not quite what they seem.
Examples of successful SaaS startups
- Figma is the design and photo editing app that overtakes Photoshop in terms of popularity.
- Slack is a corporate messenger that allows you to build effective communication from holdings to small companies
- Salesforce is one of the most popular and profitable CRM systems for its creators.
But if you want to replicate the success of such startups and create your own product, then the best solution is to contact a SaaS development company that will help you avoid common mistakes thanks to their experience, as well as save money on revisions.
Reality of SaaS
1. Safety
One of the first reasons why companies “sit” on a boxed solution is the lack of faith in the secure storage of data in the cloud. However, the fact that the cloud is unreliable can be called the main myth about cloud solutions.
When using a boxed solution, all data is stored on the company’s server, and support is provided by full-time employees. This is certainly reliable, but very inefficient:
Access to data “on site” or by using a remote server connection. If you need the data, for example, on a business trip, they will need to be transferred to an external medium, and they will be out of date. You can either connect to the database through a remote server, but this is a rather inconvenient process;
Software installation and support lies “on the shoulders” of the client company. You will need your own full-time developers who will develop and maintain the software;
Requires additional software and servers for data storage.
When using a cloud solution, the data of client companies is stored on the servers of contractors more reliably than in a Swiss bank. The security measures taken by cloud software vendors are almost always much more complex and advanced than those of individual businesses. If you think about it, a supplier who has taken on the responsibility of keeping the company’s financial data clearly understands that the issue of reputation is very acute. Any oversight – and the entire built business system will fall overnight. Therefore, the issue of security is the highest priority when creating any SaaS service:
- All information is transmitted over an encrypted protocol;
- In the event of a server crash, data is quickly restored using backups;
- Data is available from anywhere in the world 24/7. If for some reason the data is not updated in the cloud, clients still have access to it;
- 24/7 support 365 days a year by vendor technicians.
2. Price
Despite the fact that boxed services are purchased once and, most often, without any monthly payments, their cost is high. In addition, the purchase of servers for data storage is required. At the same time, you have no guarantees that the amount spent on the software and its maintenance will pay off.
Compared to a boxed solution, using a cloud solution is much more profitable:
- You do not pay for development and pay only for use. If you are not satisfied with the implementation results, you can always stop using the software;
- You don’t spend money on buying servers. All data is stored on the supplier’s server;
- Support is provided by the software manufacturer. Hiring additional employees can be excluded from the expense item;
- Solution providers offer different rates to suit the needs of every type and size of business
- Free trial mode allows the client to try the software before making a purchase decision, which makes it possible not to buy a “pig in a poke”.
3. Convenience
Among the advantages of a boxed solution, one can single out its use offline – the program is installed on a computer and does not require an Internet connection.
On the other hand, the cloud solution
- It gives you the opportunity to monitor your finances online 24/7. The cloud constantly synchronizes all your data – you can log in from your mobile device while on vacation in Bali and get the most up-to-date reports;
- Works on any operating system, be it Windows or Mac. At the same time, users with different operating systems can exchange data;
- Does not require installation. Access is granted through an account, and you can work from any device, even from a smartphone;
- Facilitates the process of auditing and showing the financial condition of the company to others. You can set access rights to the service for each employee, investor, auditor, etc. At the same time, the rights for the investor and for the accountant can be made different. By giving external auditors access to their accounting system, they will be doing their work outside of the office instead of taking a conference room full of boxes of reports with a small team;
- Quickly integrates into the company’s ecosystem. The implementation of a cloud solution takes from 2 to 10 hours, while the minimum implementation speed of a boxed solution is 1 month.
- Flexible and has a simple interface. Any user can choose the necessary settings for himself and use the reports and graphs that suit him without resorting to modifications by programmers.
What to choose for your business?
From my experience, I can say that a boxed solution is suitable either for large companies that have the time and money to develop software, or for government organizations that cannot entrust data to third-party companies. For such companies, even the theoretical possibility of data leakage is a 100% reason for abandoning cloud solutions. Although there is a paradox – often in large companies the transfer of a report or other confidential information takes place in Telegram or by mail. With such a transfer, the data becomes extremely unprotected.
At the same time, the cloud solution is available to everyone and everyone: from small to large businesses. It is flexible and allows you to use the functionality that you need.
How to create your own SaaS product
Now that you know what the SaaS model is and the basics of this business, you can start developing an MVP. With the help of MVP, you will test your idea, spending a minimum of money and time. It remains only to find a reliable contractor – as we have said, look at the portfolio, experience and reviews.
If you want to know how much it will cost to develop a cloud MVP, write to the Softformance team! We will discuss your project and tell you everything about the timing and cost.