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How to decide which SaaS (software) to buy?

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What software as a service (SaaS) solution should you opt for? How do you evaluate the different options on the market? And how do you make a confident, informed decision that will serve your business well? These thought-provoking questions form the crux of our topic of discussion.

Navigating the expansive landscape of enterprise software can indeed be a daunting task. As reported by FinancesOnline, there are over 15,000 SaaS companies in the market today. A recent Gartner survey also revealed that more than 80% of companies are using at least one SaaS application. The main issue lies in the fact that despite this rampant usage of SaaS, businesses often struggle with choosing the right product. This can be attributed to the lack of clear, standardized evaluation metrics. Therefore, the need to propose a comprehensive, structured approach to evaluate and decide on a SaaS solution is more pronounced than ever.

In this article, you will find a roadmap to guide you through the vast world of SaaS, helping you make the right buying decision. The article will break down the complex process into understandable sections, offering you a deep dive into the parameters required to assess a SaaS product.

From defining your business needs to understanding product features, pricing models, deployment strategies, user support, and software integrations, this guide will clarify every aspect you need to consider. Furthermore, it will sharpen your understanding of how potential software should align with your business objectives, thus empowering you to make a decision that yields maximum return on your investment.

How to decide which SaaS (software) to buy?

Definitions and Understanding SaaS Purchasing Decisions

SaaS, or Software as a Service, is a delivery model for software where instead of purchasing and installing a program on your server or computer, you access the software over the internet, typically for a subscription fee. The software is hosted on a remote server and users access it through a web browser. In terms of deciding which SaaS to buy, it involves a careful examination of your business needs, budget, the software’s features and functionality, its scalability, security attributes, usability, and vendor support. This decision-making process is also known as software evaluation.

Unmasking the Conundrum: Choosing the Right SaaS for Your Needs

The Factors to Consider

Choosing the right SaaS for your needs comes down to a few key factors. First and foremost, you need to look at what you need in terms of software capabilities. Are you looking for customer relationship management software or perhaps project management software? Each category of software is different and serves different functions, so you should first identify what types of software you need before diving into the options.

Next, consider how scalable the software is. Your business may be small now, but if you have plans for growth, you need software that can grow with you. Look at whether the software can handle a greater workload over time and whether you can add more users as your team grows.

Product Features and Cost

The specific features of the product must line up with your company’s needs. For instance, if you’re exploring email marketing software, you might require features like automation, analytics and A/B testing. Ensure to review the features of the software meticulously with your team and have an open dialogue concerning its suitability.

Cost is another significant factor to consider. Remember to take into account not just the initial price, but consider the total cost of ownership of the software. This includes any annual or monthly fees, the cost of implementation, and any potential costs related to onboarding or training.

  • Category of the software: Identify the type of software you need depending on your business needs
  • Scalability: Choose software that can grow with your business
  • Features: Confirm whether the specific features align with your company’s needs
  • Cost: Consider the total cost of ownership, not just the initial price

Now, with all this information at hand, it’s essential to do your research. Look at customer reviews, ask for recommendations from others in your industry, and take advantage of any free trials or demos that software companies offer. This will help you to make the most informed decision when choosing the right SaaS for your needs.

Demystifying the Complexities: A Closer Look at the Key Factors in SaaS Selection

Does Impact Outweigh Cost in the SaaS Decision-making Process?

What if the price isn’t the most important criterion when choosing a SaaS solution? Indeed, rather than focusing solely on cost aspects, organizations need to pay attention to the tool’s efficiency, as well as its potential impact on business operations. While affordability isn’t irrelevant, it shouldn’t overshadow other critical factors like the software’s ability to meet business objectives, its compatibility with the existing technological framework, and the training or support services available for users. A low-priced software might seem attractive initially but could incur higher long-term costs due to inefficiencies or lack of proper support. Therefore, the focus should not just be on finding a cost-effective solution, but rather a value-effective one.

Frequently Overlooked Problematic Areas

When organizations embark on the SaaS selection journey, some areas can cause issues if not adequately addressed. One of these areas is scalability. A software that performs well initially might start showing discrepancies as the business scales up. Therefore, scalability should be a priority during the selection process. The software should be able to handle an increased volume of users, should provide additional bonuses or lower per-user costs as more users join, and its design should account for anticipated future growth. Also, interoperability is another problem area. The new software should be compatible with the company’s existing software stack, and should easily integrate without causing disruptions. Lack of interoperability can thwart efficiency, leading to system slowdowns or crashes, data inaccuracies, and security vulnerabilities. Finally, not enough emphasis is often placed on post-launch support. Any software, no matter how user-friendly it might appear, will require continuous support and training to ensure effective usage.

A Glimpse of Successful SaaS Selection Strategies

In terms of SaaS selection, some companies have truly set the bar high. Taking the example of IBM deploying Slack for its employees worldwide, it’s clear that their decision wasn’t based purely on product features or cost. IBM spent months testing and evaluating Slack to see if it was a good match for the company’s specific needs and its existing architecture. They examined the software’s scalability potential, assessed its security features, and evaluated the type of support services they would receive post-deployment. Another example is Netflix’s move to Amazon Web Services (AWS). The streaming service’s decision to migrate their databases to AWS’s cloud computing platform wasn’t impromptu; it was the result of years of consideration, analysis, and planning. They evaluated AWS on several fronts- scalability, adaptability, security, and cost – to ensure they were making a value-effective choice. These examples demonstrate the importance of a well-rounded evaluation based on several critical factors, not limited to – but including – cost. It’s the strategic alignment of software with business goals that ultimately leads to a successful SaaS selection.

Beyond the Hype: Making an Informed Decision When Buying SaaS

Asking the Right Questions When Choosing SaaS

A pertinent question to begin with is, what are your specific business needs and will this SaaS solution meet them? In the rapidly evolving world of technology, the rise in SaaS has left many businesses overwhelmed by the array of options available. The allure of fast implementation times, coupled with potentially lower upfront costs, and improved scalability, often leads to hasty and uninformed decisions. The reality however is that not all SaaS offerings are created equal. Selecting the right one requires due diligence and an understanding of what exactly your business needs to grow sustainably. This demands thorough market research and analysis of each option in terms of functionality, cost, and scalability among other factors. Remember, the objective is not to catch up with the SaaS trend, instead, it needs to serve as an enabler for your business – making operations smoother and more efficient.

Addressing the Common Pitfalls

While SaaS offers an array of benefits, as with any technological advancement, it carries with it potential pitfalls that one needs to be wary of. The most common issue is the lack of adequate data and application security measures within certain SaaS offerings. Apart from compliance issues, poorly secured SaaS solutions can lead to massive data breaches that can cripple a business overnight. Other challenges revolve around the lack of customizability and integration options with existing systems. Not forgetting the hidden costs associated with data migration, user training, and future upgrades. Therefore, the process of choosing SaaS needs to take into account these potential drawbacks. An informed and thoughtful decision would involve conducting a thorough risk-benefit analysis and opting for a provider with robust security measures, clear contractual conditions, and excellent customer reviews.

Improved Decision-Making through Best-practice Examples

Fortunately, many businesses have navigated the SaaS waters successfully, leaving behind a trail of best practices. One effective strategy is engaging the services of a reputable IT consultant to guide the selection and implementation process. The consultant’s expertise can facilitate a painless learning curve. Furthermore, they can use their array of business intelligence tools to run simulations on how the new software would intersect with your existing processes. A common example shows how businesses benefit significantly from SaaS solutions that offer a testing phase. Companies can take advantage of this to ensure that the software is indeed the best fit. Consumers have also benefited from SaaS providers who offer detailed user guides or demo videos to smoothly onboard clients. Businesses must remember: superior technology and innovations only deliver benefits when they are entirely in line with a firm’s operations, future plans, and processes. An informed decision on SaaS adoption should thus be marked by a comprehensive evaluation of business needs, a considered analysis of potential problems, and an intelligent application of industry best practices.


Isn’t it enlightening to realize how crucial the selection of the right software-as-a-service can be for your business or personal use? To choose the perfect SaaS for your needs, you must weigh the pros and cons meticulously, understand your budget, be aware of your requirements, and ensure the software’s scalability and security. The right SaaS could bring competency, efficiency and could catalyze your growth trajectory.

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1. What factors should I consider when selecting a SaaS product?
When deciding on a SaaS product, consider factors such as the software’s functionality, user-friendliness, scalability, and pricing. It’s also important to assess the software vendor’s reputation, customer service, and security measures.

2. Can the selected SaaS product integrate with my current systems?
Integration with your current systems is crucial to ensure smooth operation and prevent redundancies. Always ask the vendor about integration capabilities and if the software can complement your existing technology infrastructure.

3. Is a free trial offered before making the final purchase?
A free trial is a great way to test-drive the software before investing in it. This helps you assess whether it meets your needs and if your team can easily adapt to it.

4. How reliable is the customer support from the SaaS provider?
Reliable customer support is critical in ensuring any issues are quickly resolved. Ask about the support channels available (e.g. live chat, phone, email) and response times you should expect.

5. Is the pricing model of the SaaS transparent and reasonable?
A transparent and reasonable pricing model ensures you aren’t surprised with hidden fees. Ensure to clarify with the vendor about any additional costs or fees that could be incurred with use over time.

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