posted 3/27/2012 11:22 PM by Tim Eisenhauer
So ... you’ve decided that you need to incorporate a social software platform into your website and you recognize the need to have a robust online strategy that leverages the social networking phenomenon.
Now, you have to juggle the pros and cons of using a hosted (SaaS) social software platform or a self-hosted platform.
"Which one do I choose?"
Your goal to arrive at a decision that best suits your short term and long term objectives may require considerable deliberation. Most would think SaaS, or subscribing to a social software platform hosted by the service provider, would obviously be the best way to go, given that the advantages of SaaS have been discussed almost everywhere on the web.
Everyone knows that it’s hassle free when you don’t need to host the software yourself. It's cost effective in the short term and usually doesnt require a large upfront investment (most SaaS offerings are pay as you go), and there is usually a short amount of set up time -- so you can get started instantly. When the benefits are laid out clearly, it seems like it’s not even something you need to think about. But, what many decision makers forget, is that they need to weigh out which solution is better for them in light of their plans moving forward and think more long term.
Here are some factors to think about:
SaaS software will usually offer the best solution at the time you subscribe for the service. There will be add-ons and upgrades perhaps with time, but they depend on the development plan of the provider. For example, if a new instant messaging technology with enhanced video capabilities were to come along a year down the line, the decision to incorporate it into your social software platform would depend on your service provider, and even if you'd want to add that new cool video chat to your social website, you may have to rest that decision on on your provider.
It’s always possible that while you are perfectly happy with a solution at a given point in time, in the long term, there may be features that you feel the need to change, customize, or add on to -- which is not an option when the social platform you are using is hosted elsewhere. If that level of customization may be important to accommodate your long term plans, then a self hosted software platform with complete source code is a better option, and it may save you the trouble of having to ditch your existing platform and look for alternatives further down the line. If this isn’t a concern, then SaaS has the upper hand.
If you can project how the user base and traffic to your website will scale over time -- is your SaaS option going to hold and function well in view of that usage? Most social software offered as SaaS is designed to accommodate hundreds and thousands of users without compromising on how it functions, and this question only becomes an issue once the user base has grown to a level where changes may have to be made to the architecture and features to help it scale with the growth. Again, this is a limitation of SaaS where you could find yourself bound by the limitations of the provider. Whether it’s bandwidth, server specs, or some tweaks that are required in the software itself, the control lies with the provider.
Perhaps one of the largest concerns for those going with Saas is the lack of transparency of what’s happening with their data and how secure it is. The risk of loss and misuse of data is always present despite NDA/IPR signings ... and although most providers are able to provide excellent security quite cost efficiently, when the software is self hosted, businesses get some solace from the fact that their valuable data is within the premises and completely within their control. Again there are pros and cons for both sides when it comes to security, but whether you need complete control of your data is a decision that needs to be thought through.
While one may think “this one is a no-brainer, SaaS has to be more cost effective” -- it is better to calculate what you would end up spending in the short, medium, and long terms, and then arrive at a decision.
SaaS can be priced on a pay as you go model or annual subscription. It could be billed monthly depending on number of users, traffic, or bandwidth needed. There could be additional costs for adding on features, upgrades, crossing user or traffic limits, and not to forget to mention the costs that come into play if you decide that the platform is no longer a fit and need to migrate to a new platform. What if there are features that can’t be integrated by the provider in future and you need to subscribe to another service to provide your users that feature?
If you give all these factors a thought and then weigh it against having to host your own software, manage security, the bandwidth, server and costs of managing it in-house ... and then come up with a clear winner, you’d have made a sound decision.
While the SaaS model is usually very cost effective, considering the scalability costs, the growth, and whether it’s still cost effective after crossing a certain number of users, the bigger picture has to be kept in mind while weighing out costs.
When you put all these different factors into perspective, the SaaS and self hosted social software solutions seem quite evenly balanced, and the decision, well, not so simple. It’s only when you take the time to consider your specific plans, and decide what criteria is most important to your social software plans can you really arrive at a decision that’s been well thought out. And one that you can be confident about to deliver your objectives, both immediate and long term.
Now that is something to think about!