SaaS vs. Software license: The Pros and Cons

2017-07-07
SaaS vs. Software license: The Pros and Cons

Online payment service providers offer their solutions and support through a software. This software can come in different contracts that might vary depending on whether the client decides between a SaaS subscription or owning the license.

Understanding how both of these options work and what are their pros and cons will help you figure out what’s best for you and your business. On its most basic definition, a software is a program or group of programs that will tell your computer how to do certain activities. Electronic payment solution providers offer their software to clients in two basic forms:

  • SaaS: Software as a Service, also known as SaaS, is pretty much what it stands for: the client purchases the software from a particular company for a very specific period of time. You purchase the service and not the product. The software can be both hosted in the Cloud or installed in your computer.
  • License: Software licensing is, on the other hand, when the client purchases the entire software from a company and therefore it is possible to use it indefinitely. With this one is also possible to have the software hosted in your computer or in the Cloud.

Now that you know the two ways in which you could purchase a software from an online payment service provider , we can dig on the pros and cons of each of the options.

Owning SaaS vs. owning a License

When it comes the time to decide between SaaS and License the first question you should ask to yourself is why do you need this software for your business.

If you are trying to grow but you are on a tight budget, getting a SaaS is probably the best solution for you as it will allow you to get the best out of your money. But, remember: you’re not purchasing the software but a service that will be valid and useful only for some time and that you will have to pay for again, when your subscription is due.

Another reason to get SaaS is that it offers you the chance of trying a particular software for a period of time so if in the near future you decide to buy the license, you will know exactly how it works and if it will be the right fit for you and your company’s long term goals.

Now, if you found just the right online payment service provider and you are willing to make an important investment, then buying a license is the option for you. By doing this you ensure your company the indefinite use of a software without paying for it every certain time. On the other hand, you will be bound to this particular program for as long as you get another software. Whether SaaS or license are best or not for you depends on your goals and your current situation. Make sure you make the right decision.