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SaaS tools are often considered the most optimal solutions for businesses that require immediate results. Just a couple of minutes, and you can select the most appropriate plan based on the project needs. This project can be launched right away, and there is no necessity for constant maintenance, server setup, or planning, especially when you launch it on robust linux virtual server.

However, there are cases when self-hosted infrastructure can be a better choice. So, here in the article, we will share some details regarding SaaS and when to conduct a shift to the self-hosted infrastructure.

SaaS as a great option for new businesses

A new business can start right away using lots of SaaS services because they are the quickest and most optimal. It is so cheap to order one service which is fully controlled by another company, and there is no responsibility; you are just paying.

This approach is awesome because of the complexity removal. If you have a small team of employees, they don’t need to bother about management updates, server configurations, and installation of the software on a regular basis.

That’s why the major benefit of SaaS is speed, which means any needed service can be immediately received without any delays and huge financial planning. At the initial phase, there are rarely any troubles, because everything functions smoothly and as intended. Also, for some businesses, such a choice can be the most optimal, and they will never plan to move to the self-hosted variants. However, some factors might inform us that something should be changed, so let’s discuss them.

The Growing Limitations of SaaS  

When a company starts using lots of diverse SaaS services for file storage, automation, analytics, chatting, and other tasks, over time, the number of used services becomes really big. That means the first obvious drawback may be connected with payments. An individual subscription is usually cheap, but after the calculation of the general spending, it may become a lot for some organizations.

Another limitation may be connected with the data spread across lots of platforms at once. With that being said, the major problem cannot be in the price range, but in the aspect of control. When one organization is split across various platforms, the process of information protection, management of access, migration processes, and even finding important files can become a challenging process.

In addition to this, SaaS services rarely stay with the same features and price range as you initially ordered. Regularly, most providers make some changes to the access, delete or add new features, or update their terms. That’s why the process might look the same, but there can be additional spending, issues with downtime, and extra work that you weren't expecting.

Those factors don’t mean that you should immediately shift to the self-hosted infrastructure. Every project has a set of unique requirements, and everything should be evaluated based on the circumstances. For instance, there might be cases where a small extra payment won’t be a huge of a deal, but a full move to the self-hosted services can require plenty of time and effort, and on the contrary.  

Understanding of self-hosted services

Self-hosting is usually associated with more challenging processes than it really is. For instance, most people think that self-hosting is the actual purchase of the physical hardware and hiring IT professionals for the constant support and management of all the server-related processes. Well, yes – there is a possibility of buying a physical server, but it is not the only option.

Usually, there are more budget-friendly solutions, such as ordering a VPS or scalable Ubuntu VPS and using it for the hosting of the database, website, automation tools, file storage, or other important tasks. Here are a couple of tools that can be self-hosted:

• Mattermost for team messaging.
• Jenkins for automation and continuous integration.
• ERPNext for enterprise resource planning.
• Grafana for monitoring and dashboards.
• PostgreSQL for relational databases.
• MariaDB for database management.
• Taiga for agile project management.
• n8n for workflow automation.
• Docker for managing and running applications.

When switching to self-hosted services makes sense?

Switching to the self-hosted services should be properly evaluated according to the needs of the specific project. For instance, if there is a necessity for better control over infrastructure and information, then self-hosting can be the most optimal choice. This is especially crucial for companies that are working with sensitive information and should follow specific industry regulations.

Another reason for the switch can be connected with customization and evaluation of long-term spending. Self-hosted software is considered to be extremely flexible, has higher integration with certain systems, and has better customization. That’s why such a choice can become the most appropriate for organizations with the availability of technical expertise.

Here are the most common scenarios when self-hosting can be an optimal choice:  

• Spending is growing with each new user.
• The number of separate subscriptions is constantly growing.
• The company has minimal technical skills.
• There is a necessity for more control over all the information.
• Necessity of predictable monthly payments.

Also, there is no need to switch all the services to the self-hosted infrastructure. For some projects, the most optimal decision can be a hybrid model. For instance, CRM might be kept as SaaS, but file storage, website, and automation workflows can be moved to VPS or other hosting solutions.

Common scenarios where SaaS can be a better decision

Self-hosting is a great choice, but it won’t suit every scenario. For instance, if the company doesn’t have an IT specialist or time for the proper setup, or just needs immediate results, SaaS might be the best choice.

There is also a necessity in SaaS when the system requires strong compliance, vendor support, or other industry-specific features. The goal is to conduct a comprehensive evaluation of the system and select the most optimal variant. If a simple self-hosted setup functions way better, there is no need for default subscriptions, and vice versa.

To conclude, self-hosting is more suitable for long-term independent projects, when working with sensitive information, and higher control is needed. Whereas SaaS will be great for small startups with no IT expertise, and there is a necessity for a quick launch.