Enterprise SaaS-Based Shipping Solutions vs. Server Based Options
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Having a multicarrier shipping platform should be a strong consideration for any company sending 20 or more parcels a week as the carriers’ options today allow for companies to leverage this process and save significantly as compared to marrying yourself to one carrier. It wasn’t long ago that these solutions were out of reach for most companies, as technology required for a capable enterprise shipping solution involved hardware, software, and a significant commitment of IT resources for installation and support. Clearly, those days are long past.
If your small – or medium-sized business relies on regular shipping, it goes without saying that you need advanced options that will consistently get the job done while keeping costs low. The latter is extremely important as it’s far-too-easy to let your shipping costs spiral out of control and greatly increasing your overhead. Multiple studies show that savings of 10-15%+ in carrier costs are typically available by having a solution in place.
These reasons and others are why most companies have turned to SaaS- or server-based options to help them with their sending needs. Of course, it can be a very tough decision.
Defining SaaS and Servers
Before we compare the two, let’s take a moment to define these options first as they are often confused.
SaaS-Based Shipping Solutions
SaaS stands for Software as a Service.
For the most part, it’s just like traditional software, except that it’s delivered to the customer through an Internet connection. In this model, the vendor hosts and maintains everything from the server to the database to the code that is required by the application. SaaS still makes use of servers.
However, when we talk about servers in this context, we’re talking about the cloud. SaaS is a type of cloud service, which means it relies on multiple computers (specifically, servers) that are housed all over the world.
Server-Based Shipping Solutions
Server-based shipping solutions are the traditional option. Instead of the software being hosted elsewhere, the company using it use their own servers on-premise and hosts it there.
SaaS vs. Servers for Shipping Solutions
Now that we have definitions in place, let’s look at how the two options stack up against one another.
1. Affordability
If you’re thinking about the needs of your small- or medium-sized business, it goes without saying that cost is one of the most influential factors for you to consider. Without a doubt, SaaS-based shipping solutions win out here.
The main reason is simply that SaaS is a much simpler deployment. You won’t need a place in your office to store your server, much less all the supporting hardware it requires. Ongoing costs are much lower with SaaS, too. You’re only paying to maintain your subscription. That’s it.
For a server-based deployment, you have the maintenance costs involved and the utility bills to keep your sever running. Plus, if you don’t already have at least one IT staff member who can maintain your server, you’ll need to pay for that, as well.
2. Simplicity and Speed-to-Value
SaaS wins out when it comes to simplicity and speed-to-value. Obviously, these are also important metrics for many small – to medium-sized businesses. For those of you unfamiliar with the term, speed-to-value isn’t just a buzzword. It’s a reference to how important it has become for companies not just to adopt new technology but to do it before their competitors do.
Suffice to say, SaaS-based shipping solutions are much simpler to implement than the server-based versions. With much less strain on IT resources, SaaS allows for quick implementation and launch of the solution. Both options require hardware, but after that, SaaS only needs a computer and an Internet connection. It doesn’t get much simpler than that.
Setting up your own server – including the hardware involved – and maintaining it is not what most people would consider simple. Again, you’re also going to need some kind of on-premise support staff to maintain that deployment, as well.
3. Security
For years, the debate has raged over which is more secure: on-premise or the cloud. It’s understandable, given how important network security has become. You can’t be too careful about adding technology to your company’s current inventory, less you welcome in unwanted visitors.
For the most part, the consensus seems to have been that neither is superior to the other. Network security has far more to do with the actual users and how careful they are about providing access.
With that said, the tide does seem to be turning with more and more IT pros saying the cloud is more secure.
4. Support
By its very nature, a SaaS-based shipping solution will offer better support. The vendor will have direct access to the platform, so if you can’t troubleshoot a problem you’re having, you can call up support and one of their representatives can look into it. This is a massive advantage for those who may not have a proficient IT member to help them when they face software issues.
5. Updates
SaaS is superior when it comes to updates for the same reason we just mentioned. Anytime you access your SaaS-based solution, it has the latest carrier updates, processing updates, etc. all ready to go. With server-based solutions, when an update is released, you or your IT team need to make sure to update the software to the latest versions
This doesn’t just refer to enjoying greater capabilities, though. One of the reasons SaaS platforms are more secure is because vendors can create security updates in response to new problems and, once again, customers can download them immediately.
Picking the Best Option for Your Sending Needs
Any organization sending 20+ parcels per week should be looking at multicarrier solutions to lower your costs significantly and allow you to best negotiate with the carrier. The final answer on SaaS vs. server based-solutions depends on your actual needs and application, but for a majority of companies, it should probably be clear that the best option for your unique sending needs rests with a SaaS option.
If you’d like help choosing this option or getting answers to any questions you have about it, don’t hesitate to contact Kelly Imaging Systems. With more than 40 years of experience, we’re very familiar with the changing landscape of technology and helping our clients adapt ASAP.