SaaS software vs in-house: The pros and cons


This guide outlines the benefits of SaaS software vs in-house for data storage and hosting, and why even small business should consider carefully.

When it comes to your data storage and hosting services, different options will suit different businesses. There’s no “one-size-fits-all” approach you can take. You have to look at your available options and compare the pros and cons of each. You can then come to that final all-important decision that will undoubtedly impact your business. 

  • Why Choose SaaS software?

SaaS (Software as a Service) is an increasingly popular storage solution for businesses of all sizes. It is a cloud-based service that hosts and stores data on the internet through a server owned by a third party. Clients or customers effectively rent server space for their data storage and/or applications. 

There are many different services available out there to suit a diverse range of business needs. From visual planning resource scheduling software to social media marketing software, SaaS software covers all solutions. Let’s take a look at why SaaS software may be the right choice for your business:

  • It’s An Affordable Option

Typically, SaaS software solutions are subscription-based, meaning you only pay for the space you need. There are also no costs to pay upfront and no costly upgrades or maintenance over time. 

The scalability of SaaS software is convenient for most businesses as they grow, or as they need to reduce their server space. It’s a good option if you’re just starting out and you’re not completely sure of how much storage you’ll need over time.

  • There’s No Need For Infrastructure

With SaaS software, your company won’t need to build or maintain expensive infrastructures because everything is stored on the internet. You rent server space, so you don’t actually ever see the server, and you have no physical contact with it. All you do is benefit from its rental space.  

On the other hand, with in-house servers, it’s necessary to build your own server (or have someone build it for you), install your applications, and then configure them. 

If you’re a bit technically-minded and you think you would benefit from a virtual private server (VPS),  there are some free options available. This is handy for dipping your toe in the water to see if they’re right for you. 

  • You Get More Flexibility

Since you’re working through the internet, SaaS makes your data and applications accessible from anywhere, making it a flexible option for businesses with multiple branches in different locations. Management will be able to distribute passwords or encryption details to relevant staff members so that they can quickly and easily access what they need to and when. 

Additionally, with SaaS software, you can access your data from any device, providing it’s connected to the internet. 

  • Everything is Updated and Maintained for you

The technical aspects of maintenance and updates of SaaS software services are all handled for you, saving you the cost of hiring extra IT personnel. If you come across any technical issues, your service provider will have their own team of IT professionals to take care of the problem quickly. 

Updates will usually be automatic and included in your subscription costs. You won’t have the hassle of manually updating the software yourself. 

  • Why Choose In-House over SaaS software?

In-House servers are a traditional solution for data storage. They are servers that you build, run, and maintain yourself. They can be on-premise or off-premise, depending on what works for you and how much physical space you have available. 

But, considering the costs they incur and the space they take up, why exactly would you opt for in-house data storage?

Here are some reasons why:

  • They Don’t Depend on an Internet Connection

Unlike cloud-based options, in-house servers don’t depend on an internet connection. Processing large amounts of data offline is significantly quicker than processing them online. 

Additionally, in-house servers won’t be affected if your internet is down or is having a “slow day”. This makes them an ideal option for businesses demanding a high rate of productivity. 

  • You are in Control of Everything

Because your servers and all the data on them belong to you, you have complete control over them. You are not relying on third parties to keep your data safe and maintain your server. Providing you have the experts at your disposal to take care of them, in-house servers are an excellent option for those handling very sensitive information. 

  • An Extra Barrier of Security

Everything connected to the internet is at risk of a security breach, no matter how robust your security is. In-house servers eliminate this risk by keeping everything safe in one place.  

  • They are Very Powerful

In-house servers are considerably more powerful than SaaS options. They are able to execute larger demands and workloads and process them more quickly. If your business demands a high-performance server, in-house might be your most appropriate choice. 

  • The Final Decision is Yours

The best thing you can do is to weigh up the pros and cons of both SaaS and in-house servers. You can then compare them with the needs of your business. The main questions to ask yourself are these:

– Do you have your own IT team with server expertise?

– Does your business handle very sensitive data?

– Would downtime be a big problem for you?

– How much data would you need processing?

– How much capital do you have to invest in data storage?


The decision when choosing between SaaS software and in-house owned software is one that should be made with proper and careful consideration. Weigh up your options carefully and consider all your current and future needs before committing to a decision. It may be worth starting with SaaS to see how it suits you and how well it can handle your needs. You can always change this later on if you need to. 

However, If you decide to build an in-house server and realize in the future that you’ve taken on too much, then that would be a very costly mistake for your business, despite the amount of control it can give you.

About Business Woman Media

Our women don’t want to settle for anything but the best. They understand that success is a journey involving personal growth, savvy optimism and the tenacity to be the best. We believe in pragmatism, having fun, hard-work and sharing inspiration. LinkedIn

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