Software as a service (SaaS) and enterprise software have many similarities, but when you’re looking to adopt a solution, it’s important to understand their differences. Generally speaking, the main difference between them is the intended user. SaaS is created for individuals and small to midsize companies, whereas enterprise software is developed for much larger businesses.
Whether a business qualifies as enterprise-level depends on several factors, including revenue, number of employees, industry, and more. Enterprise-level businesses usually have hundreds of employees in several departments. When a business reaches that level of complexity, its software needs an update to handle its intricate processes, as well as collecting, distributing, and visualizing its data.
Advanced businesses need advanced solutions, so one-size-fits-all solutions like you’ll find with SaaS are not always viable. There are many benefits to implementing enterprise software in your businesses, but when is the right time to do so? Let us help you evaluate which type of software is right for your business.
1. Software development
Silicon Valley is filled with stories of energetic entrepreneurs launching startups after a weekend flurry of pizza and energy drinks. After attracting the first investor, the startup is torn down and rebuilt once again as the systems are often rudimentary, bulky, and not streamlined.
This process can be expensive, especially when building software of the quality most large businesses need. One essential technique used in building enterprise software is TDD (test-driven development), which involves writing an automated test that fails. The developer then writes just enough code to make the test pass. After this, they refactor both the test code and the production code and repeat the process again.
With TDD, developers test all code as they write it. This method requires a lot more planning, time, and discipline, but the resulting software is more durable, flexible, and has fewer bugs.
2. Sales and cost
When it comes to cost of enterprise software, the price isn’t always straightforward. SaaS products usually have an easily accessible pricing page. There are usually several options containing different price tiers based on individual needs and business types.
Enterprise software providers rarely list prices up front. Servicing complex needs means tailoring each product to fit each client’s enterprise software requirements.
Most enterprise-level software websites allow companies to schedule a demo rather than providing a sign-up form. A sales rep then walks the stakeholders through the many benefits of their software. Once the stakeholders understand what the company needs, they’ll discuss pricing.
3. Support
With SaaS, customer support can vary from company to company. Some companies only offer telephone support to members with higher-paid tiers because handling phone calls is expensive.
If you’re seeking customer service from a SaaS company, you’ll probably have to rely on FAQs, chatrooms, and X.
As enterprise software relies on a few high-end clients, customers will have access to a team of representatives who will handle their issues rapidly and professionally. They may even get a dedicated account manager.
4. Security
Most SaaS tools come with top-notch security. It’s in everybody’s best interest to provide the most secure tool possible.
Enterprise-level corporations have higher security needs, so they may have their own security systems in place or they may work with specific external security systems. They also provide clients with bespoke security-level access for different employees.
5. IT/IS
Most SaaS systems will be plug-and-play, meaning that you can use the software on most internal systems, so compatibility is less of a concern.
With enterprise software, companies will need to check that it is compatible with their IT/IS systems.
6. Developer friendliness
Many SaaS companies will have a public API (application programming interface)—a set of communication rules that individuals and companies can use to access data from a SaaS system. By integrating it with other software, an API can expand existing services and make software more useful.
Some enterprise companies reserve API access for specific customers on the higher tiers as having an API is a valuable feature.
7. Management reporting and analytics
SaaS is usually meant for individuals and smaller teams. Only a handful of people will use the software, and is it not used for mission-critical purposes.
Enterprise software will be deeply incorporated into business systems, and hundreds of people will use it. Therefore, it’s very important how they use it, how they access it, and what kinds of results they get from it.
Many enterprise solutions will offer usage reporting and internal analytics to help evaluate how the software is performing along with data on the team’s performance.
8. On-site hosting
Some companies rely on cloud hosting while others run their own intranet and host it locally. The latter group will keep its web presence on an entirely separate set of servers to handle speed and security.
Enterprise companies will often license locally hosted versions of their software, which they run on-site at a client’s business. They may even send staff members to help install the systems and connect them to the client’s existing infrastructure. This level of service goes way beyond the offerings you’ll find from SaaS.
9. Custom solutions
While enterprise solutions are usually custom-built to the specifications of a particular business, they can also come prefabricated, similar to as SaaS solutions. If the enterprise company has enough experience, they’ve most likely planned for every contingency and have systems in place for most use cases.
Newly established enterprise companies with less experience may need to build custom solutions for individual clients from scratch. They can then include those solutions as better offerings for future clients.
SaaS solutions will vet their new features through market and A/B testing. Enterprise companies may even take custom solutions with a wide enough appeal and create a SaaS offering with it.
A prime example of excellent enterprise-level support
Jotform is built from the ground up to be a valuable offering for SaaS and enterprise clients. We proudly offer enterprise-grade security, compliance, and other features at every level.
Companies like Adobe, Netflix, and Ford rely on our priority customer service, white-label branding, and robust API.
We offer everything you can expect from a world-class enterprise solution, and our enterprise software is a perfect companion to our best-in-industry tools for forms.
Photo by Tiger Lily
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