THE CASE FOR CUSTOM DEVELOPMENT SOLUTIONS

Deep Dive into the Downsides of Enterprise SaaS

Often seen as the cure for weak operational workflows and limited productivity, an Enterprise Software as a Service solution may have hidden complications that business owners should know. Jace Anderson, Director of Accounts, dives in to tell us more.

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Everyone loves Software as a Service (SaaS) solutions. In fact, Klaviyo, a marketing technology SaaS, just IPO’d to great success. So obviously, a good portion of large companies choose SaaS solutions to address their technology needs. While SaaS solutions offer undeniable advantages, such as convenience and scalability, they are not without their downsides. In this article, we'll explore the cons of enterprise SaaS solutions and make a case for why some companies might prefer building custom solutions instead.

Complexity in Configuration

One of the significant drawbacks of enterprise SaaS solutions is the complexity when trying to configure them. These solutions often come with a wide range of features, settings and flows, making the initial setup and ongoing configuration a daunting task. Companies often find themselves with a pile of options and dependencies, leading to delays in implementation and potentially misconfigurations in the technology (which can be difficult to troubleshoot). Custom solutions, when paired with experienced architecting, can be tailored precisely to your requirements, eliminating unnecessary complexity and ensuring a smoother setup process. When a company is engaged in the design and development of technology, adaptation and configuration become infinitely more manageable.

Lack of Agility in Design

These enterprise SaaS solutions are typically precisely that: software servicing a client, but not any particular client. This type of versatility can be an advantage for the vendor but can also result in a lack of agility for the business that uses it. 

Updates and changes to the software are made to accommodate the needs of a diverse user base (unless you’re Amazon big), which may not align with your specific requirements. For functionality, you can change within the system, feature updates or improvements are often analyzed and can take ages, while software vendors ensure that all the potential dependencies and cascading implications of that change are ruled out. When utilizing custom solutions, agile is how they’re built (when built properly) and with the rise of composable architecture, technical agility should come standard.

Specialized Talent

At Acro Commerce, we’ve found that many enterprise SaaS solutions require specialized and dedicated teams to manage these systems. One quick look at the SalesForce ecosystem tells you this is true, as many companies have made significant amounts of money consulting on SalesForce setup, implementation and alterations. For companies deciding between software vendors, this means additional hiring and training costs and ongoing personnel expenses. 

For example, take a look at our recommendations for restructuring manufacturing teams to manage an ERP solution. 

Are custom solutions THAT different? If they were the same size, probably not to a significant extent. But custom solutions rarely require that same level of expertise or specialization since (heading into my next point) they are tailored and targeted for the specific use case of the client.

Unused Functionality

Enterprise SaaS solutions often come packed with a plethora of features and functionality that may go unused by your organization. Paying for functionality your business won't use impacts your budget and adds unnecessary complexity to your software ecosystem. For example, let’s look at all the features of SalesForce Marketing Cloud:

• Journey Builder
• Email Studio
• Data Studio
• Social Studio
• Advertising Studio
• Mobile Studio
• Interaction Studio
• Salesforce DMP

And those features are all very high-level, as each can be broken down into more specific features within. Don’t get me wrong, it’s an impressive suite, but when your company is only able to utilize 4 to 5 of those features meaningfully, that’s a lot of unused functionality.

Custom solutions allow you to focus exclusively on the features and capabilities that matter most to your business, ensuring a streamlined and efficient user experience. Additionally, this plays into the composable angle as well. Having decoupled technologies to manage certain flows allows for futureproofing of them as the years pass and you inevitably have to change them up.

More Than Just a Price Tag

I bet you thought we were going to mention COST! I figured this one is so obvious that anyone reading this would automatically lump that in there, too. 

To summarize, while enterprise SaaS solutions offer undeniable advantages, including convenience and scalability, they come with their fair share of drawbacks. Building a custom solution allows you to tailor your software precisely to your organization's unique needs, eliminate unnecessary complexity, and potentially reduce long-term costs. 

However, weighing the pros and cons carefully and considering your business's specific requirements before deciding whether to build a custom solution or opt for an enterprise SaaS offering is essential. Ultimately, the choice should align with your strategic goals and the long-term vision for your technology infrastructure.

Have a specific business need that typical SaaS doesn’t meet?
Reach out to our development team for a custom solution.