What Is The Difference Between SaaS and Hosted Software?

2017-08-09T00:58:23+00:00

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Yesterday we shared a few links to the most popular pages where you can find, read about, and even download project management software (link in the related posts section below.) However, we had to look for pages with reviews and links to the websites offering such tools and solutions, more than for those that offer the download. That’s because when it comes to Project Management Software it’s not always available for the download.

That’s because there are usually two options to choose from – the Software-as-a-Service called SaaS and hosted software. It’s important that we know the difference between the two. Why don’t we try and learn it today? 😉 We will also try to provide the most important pros and cons of both, so once you have to make the choice, you will know which of the options suits your needs.

Software as a Service

Which is also called software on demand and, to put it simply, is available online. You simply create an account and use it as much as you wish to without having to purchase a subscription or install it on your working device. Of course, most of them still have the pay-as-you-go system but will also be able to find quite a lot of those that are completely free or offer an appealing free trial.

TimeCamp may be given as an example of both SaaS and hosted software, as it is available in the cloud as well as through a neat app that you can download and install on your device. No matter which one you choose, you will receive a solid and reliable time tracking software that’s packed with features like automatic time tracking, graphical timesheets, reports, billing rates, invoicing, and many, many more. You can try it out for free! Interested? Sign up now!
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Whenever there is a need, you just log into your online account and use the software that you need. The security of such tools is usually very strong and accessible for multiple customers. Their data is stored in one database that, obviously, has a backup, so there’s no fear of it being deleted. The main advantages of this option are:

  • Very small chance of system failure or data breach.
  • Most of the tools are way cheaper than their ‘downloadable’ counterparts.
  • Usually very simple and intuitive, don’t require a lot of practice
  • Usually available on any device and require only the access to the internet
  • Doesn’t require updates

Overall, this is a great solution to those who aren’t looking for too complicated software, with many options and higher price. SaaS software is usually simple and neat, with an immediate access and fewer updates (updates that every customer receives at the same time, without the necessity to install them.) The troubleshooting is also very rare. Are you using the SaaS software? Share your opinions in the comments!

Hosted Software

Hosted software operates on simple basics – you buy it and you own it. You can customize it accordingly to your needs and each customer has his or her own database. You have to download and install it and you are most likely will pay a considerable sum of money for purchasing the product. However, in the long run, it may turn out to be cheaper than the SaaS software which may require some sort of microtransactions for additional options or prolonging the subscription. The hosted software offers:

  • Solid security
  • Better price for those, who want to use it in a long term
  • Lots of features and customizations
  • Flawless customer support

We have to, however, care for updates that may paralyse our work for a while, and server failures (which, fortunately, happen very rarely) which may paralyse our work for a much longer while. The bright side is that when the paid update is introduced, we will most likely be able to decide whether we want it or stay with the older version. Very useful in bigger companies which can afford the staff that’s keeping an eye on the tool and makes sure everything works smoothly, while the other employees can peacefully focus on their tasks.

Summing Up

Both of the described options have their ups and downs, while we can safely agree that there are much more benefits that come from using this software than there are risks. Do you know which one is the right for you? Oh, and remember, TimeCamp has an amazing desktop app!

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Copywriter and content creator. Has been ghostwriting for TimeCamp for quite some time but that's no more, so now you can see his photo. Tomek enjoys music and literature of all sorts.

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