Two of the most common software delivery methods that companies may utilize to give digital services to their clients are Software as a Service (SaaS) and Web Apps. Both run on the Internet. Both help businesses achieve more in less time. However, the way they function and the impact they have on your business can vary significantly.
In this article, we will break down the differences between SaaS and Web applications, explore when to use each one, and understand which is the right fit for your business.
Table of contents
What is Software as a Service (SaaS)?
SaaS represents a cloud-based software delivery model that allows users to access applications via the internet, with the cloud service provider managing infrastructure, security, and updates. SaaS functions on a subscription model, removing the necessity for customers to install or manage software on their local systems. This enables IT teams to focus more on strategic initiatives rather than getting bogged down in software and hardware management.
According to Statista, the worldwide SaaS market generated around 250 billion U.S. dollars in revenue in 2024, representing about two-thirds of the total revenue from the public cloud services market. SaaS products cater to both B2B and B2C audiences, a distinction that sets them apart from IaaS and PaaS offerings. The SaaS market is set for ongoing growth, with organizations of all sizes globally embracing SaaS solutions for diverse business functions. Some popular SaaS examples include Salesforce, Zoom, Slack, Dropbox, and Intercom.
SaaS platforms also natively sync with sales triggers data sources, which is a huge advantage, since trigger-based campaigns can run immediately instead of waiting months for custom integrations.
Pros:
- Generally, more affordable
- Flexibility and accessibility
- Automatic maintenance and updates
Cons:
- Contractual obligations
- Dependence on the Internet
- Limited control
What is a Web App?
A web application, on the other hand, is a custom-built software solution accessed via a web browser. Your team builds it, takes responsibility for it, and typically manages the hosting either independently or via a third-party server. It may serve internal or external users and is typically developed to meet specific operational or business needs. It’s not SaaS unless it’s being delivered to users as a service, with a subscription model and centralized management.
Similar to SaaS, web applications require web browsers for functionality; however, they vary in their delivery methods and ownership structures. To put it simply, web apps are specialized software that you can access and utilize straight from your web browser. In contrast to conventional desktop applications that reside on your computer, web applications function on web servers and are accessed through the internet.
Pros:
- Fully customizable
- Competitive differentiation
- Long-term cost effectiveness
Cons:
- High upfront cost
- Technical expertise
- Ongoing maintenance
SaaS vs Web Apps
While all SaaS solutions are in fact web-based software, it’s important to note that not every web application qualifies as SaaS. Their methods of access, deployment, management, and scaling set them apart from one another.
Here are the main differences between them:
| Aspect | SaaS | Web Apps |
| Deployment | Hosed on the cloud | Hosted on the web server |
| Ownership | Vendor-owned and managed | Fully owned by the business |
| Pricing | Depends on the features and service (subscription-based model) | Usually, a one-time purchase of license fees |
| Security, Maintenance, and Support | Handled by the provider | Handled by the development team or hosting partner |
| Examples | Slack, Trello, Zoom | Custom Internal CRM, e-commerce sites, online banking platforms |
Which one to choose?
Currently, a lot of companies refer to software development agencies for Web App or SaaS development services. SaaS and Web Apps may seem closely related but have distinct differences. Both solutions offer numerous benefits, but the final decision on which one to depends on various factors that each business owner or individual should consider.
Below are the primary ones:
Goal:
This is the primary determinant. It is well worth your money to invest in software as a service (SaaS) if you wish to generate income by selling a software product to a diverse audience. Nonetheless, if the objective is to create an application targeted at a particular customer, we suggest going with a web application.
Business Size:
If you are new to business and only have a small team, we would advise you to pick an option that costs less. With that said, SaaS would be a better fit. Web apps work for large, well-known companies with many sections and thousands of workers.
Customization:
Because SaaS solutions are less configurable, they are not an ideal choice if you are looking for a solution that can be customized. Web applications are an excellent choice for satisfying your requirements for customization.
Data Security:
SaaS’ security is handled by the moderators or the providers themselves, while in case of Web Applications, the security part is generally handled by the company’s technical department or a third-party service provide.
Flexibility:
SaaS systems’ adjustable settings and pre-built connectors let organizations customize typical functionality while preserving the simplicity of use. These systems provide APIs and modular components for modification, but they follow the vendor’s framework. Through customized development, custom web apps allow organizations to design exactly the functionality they need without platform limits. For example, web apps can give you total control over your digital shelf insights, while SaaS tools offer limited, pre-set reports.
Overall, SaaS is ideal for SMEs that prioritize speed and scalability, and global or remote-working teams. Additionally, SaaS might be a great option if there is no dedicated technical team. On the other hand, Web Apps are better for large manufacturers, specialty B2B companies, or brands that have distinct technology stacks.
Final thoughts
While software as a service (SaaS) solutions provide speed, scalability, and out-of-the-box connections for sales triggers, bespoke web applications offer unmatched flexibility for the implementation of customized processes and the management of long-term costs. However, as mentioned, the ultimate choice depends on the business goals and the results you want to achieve.
