Octobits Blog – In the middle of the debate about managed services vs SaaS, there is one single question we need to ask: Which model is Right for your business?
As companies go through digital transformation, they often have to decide whether to use managed services or SaaS solutions.
Each has its own set of benefits, and the choice between them can significantly affect an organization’s operations, costs, and agility.
So, it’s time to discuss managed services vs SaaS. Why? Because we all want to know the different features can help our company be more efficient and successful.
Key Differences Between Managed Services and SaaS
Scope of Services
Managed services are when you outsource specific IT functions to a third-party provider, who is known as a Managed Service Provider (MSP).
These services usually include network management, data backup and recovery, cybersecurity, and IT support.
MSPs handle managing and maintaining these services, which lets businesses focus on what they do best.
For instance, as AdDaptive explains in their paper, MSPs provide a lot of campaign management, data onboarding, and audience analysis, so businesses get all the support they need for their advertising needs.
On the other hand, SaaS is a model where software applications are delivered over the internet on a subscription basis.
These apps are hosted by the service provider and can be accessed via web browsers. SaaS is a great way for businesses to avoid the hassle of installing and maintaining software locally.
SaaS is a hassle-free way to use software tools like customer relationship management (CRM) systems like Salesforce, project management tools like Trello, and accounting software like QuickBooks.
Ownership and Control
In a managed services setup, the MSP has a lot of control over the IT operations they manage. They take care of everything from system updates to security measures.
But the client still owns the IT infrastructure and data. This setup lets businesses keep control of their data and systems while getting the benefit of the MSP’s expertise and management skills.
With SaaS, it’s a different story. The service provider owns and controls the software. Users don’t have much say in how the software works.
They rely on the provider for updates, maintenance, and data security. This model gives you less control but makes things easier and more convenient.
Users don’t have to worry about software maintenance, so they can focus on using the software to improve their business operations.
For more details, you can read “Why Does Company Need SaaS Management: Your SaaS Survival Guide.”
Customization and Integration
Managed services can be customized to fit the specific needs of a business. MSPs make sure their services fit right in with a company’s existing IT infrastructure.
This customization can also extend to specific security protocols, compliance requirements, and integration with other software systems.
Nexalabs, an Australian MSP, offers a comprehensive, customized approach to campaign optimisation and data analysis, providing businesses with personalized solutions that meet their unique requirements.
SaaS solutions usually offer less customization than managed services.
They’re designed to be pretty flexible and easy to use in different industries. While many SaaS products let you customize and integrate through APIs, they’re not as flexible as managed services in this regard.
SaaS apps are usually ready to go right out of the box, which makes them perfect for businesses that need to get up and running fast and don’t need a ton of customization.
Pricing Models
Managed services and SaaS also have different pricing models. Managed services are usually based on a subscription model or a contract that covers a lot of different services.
The cost can vary a lot depending on what services you need, how much support you want, and the experience of the MSP.
Managed services usually cost more because they offer more comprehensive and tailored support.
Nexalabs, for instance, has a pricing model based on campaign performance that doesn’t tie customers down to long-term contracts. This can be good for businesses that want flexible and cost-effective solutions.
SaaS pricing is also subscription-based, but it tends to be more straightforward and cost-effective.
You pay a regular fee to access the software, which often includes maintenance, updates, and support.
SaaS solutions are usually more affordable for small to medium-sized businesses that don’t need a lot of customization.
With the subscription model for SaaS, businesses can expect predictable costs and scale their usage based on their needs.
For reference, kindly read “Benefits of SaaS Management: Your Track for a Stress-Free Tech Stack.”
Combining Managed Services and SaaS
A lot of companies find managed services and SaaS work well together when it comes to IT management.
This hybrid approach combines the best of both worlds, offering the convenience and scalability of SaaS apps with the tailored support and comprehensive management of managed services.
SaaS applications let businesses get software solutions up and running quickly and cheaply.
We need to think about the data from CloudZero. It says that 71% of businesses use cloud-based SaaS to speed up IT service delivery, and 63% want the flexibility that SaaS provides.
So managed services go hand-in-hand with SaaS by providing essential infrastructure management and cybersecurity.
For instance, managed service providers (MSPs) offer services like continuous monitoring, data backup, and disaster recovery, which help keep your data safe from cyber threats and minimize downtime.
This hybrid approach lets the client company focus on what it does best while benefiting from cutting-edge technology and reliable support.
How Octobits Can Be Your Supporting System With SaaS
At Octobits, we specialize in providing SaaS management solutions to your business’s specific needs.
Octobits has got you covered with all the tools you need to monitor and manage your SaaS applications, boost productivity, and make sure you’re staying on top of industry standards.
So yes, our goal is to become your supporting system with everything from choosing the right SaaS to managing it and making it work for you.
This means your business will not only choose the right SaaS tools, but also use them in the right way to drive growth and efficiency.
If you want to know more about how Octobits can help you manage your SaaS solutions, just visit Octobits.io.
Conclusion
Managed services are great for businesses that need IT solutions that are tailored to their needs.
SaaS, on the other hand, offers cost-effective, scalable, and easy-to-deploy software solutions.
By taking a close look at what your business needs and thinking about a mix of the two, you can make the best use of both models to get the most out of your IT operations.
It doesn’t matter if you go for managed services vs SaaS, or a mix of both. The important thing is to choose solutions that fit with your long-term goals and day-to-day needs.
