The truth about SaaS applications
Updated: Jun 30
SaaS, or Software-as-a-Service, is a software delivery model that allows businesses to purchase licenses to a platform on a subscription basis. This software is usually one-size-fits-all, which is convenient to purchase but can end up causing major inefficiencies with data silos and integration issues.
Here is the truth about SaaS applications and how they can actually do more harm than good.
How Did We End Up with So Many Systems?!
When you are running a business, choosing corporate software is usually delegated to committees or individual departments. This makes sense because those departments will be the ones using the software, and they know what systems would work best right?
Well, the problem with allowing individual teams or departments to choose their own software is that you may soon find yourself with way too many platforms to count. This leads to many issues including difficulties with integration and the creation of data silos.
The same thing can happen as your business grows. You may purchase a SaaS application at the early stages of your business, and soon you outgrow it – so you move on to the next one, and then the next one. As this vicious cycle continues, you leave a trail of redundant processes, obsolete programs, and systems that do not communicate.
Typically, when the software is chosen the focus is on the specific features and capabilities that the application has to offer. There is usually minimal consideration regarding how the SaaS application will integrate with the existing IT ecosystem. This leads to issues with integration and communication issues between systems.
To mitigate these problems, you may find yourself consumed with a patchwork of Excel spreadsheets and manual processes to try to make things work together. Rather than these SaaS applications saving you time, the lack of integration and connectivity forces employees to do more work and waste more time.
The Problem with Data Silos
A data silo occurs when there is information that is only accessible by one department or cannot be easily accessed by other systems. When data is not properly integrated separate silos are created – leading to overlapping and inconsistent information, reduced efficiency, and data integrity issues.
Data silos slow down decision-makers and prevent effective analysis from being conducted. It can even prevent you from remaining competitive in your industry. How can you be sure you have the right customer information if you have to check three different systems?
Data silos are an issue for businesses everywhere. A survey by F5 found that 54% of the businesses had up to 200 unique applications in their network. Of those businesses that responded, 23% had up to 500 different applications!
Imagine how time-consuming and overwhelming it would be to create standardized processes and procedures when you cannot even keep track of how many applications you have. Not to mention the additional cost it takes to operate and maintain all of these independent systems.
Avoiding Integration Issues
So, how can you avoid the integration issues caused by SaaS applications? The first step is to consolidate your applications onto a single platform.
By leveraging a comprehensive enterprise solution, you can be sure that all of your data is communication and working together. This is the foundation for relational databases.
This eliminates the need for expensive middleware or integration projects, as well as redundant manual work to transfer data between systems.
When choosing a digital solution, it is important to select one that has the features needed to solve the challenges your business is facing, but also one that can be customized to work with any existing platforms.
Even the best B2B database on the market will be of no use to you if the software will not communicate with your other programs or integrate with your processes. Work with IT professionals before you purchase another SaaS application. Have them map out integration requirements and determine if a SaaS application is the best option, or if it would make more sense to just make a proper investment into a custom enterprise solution.
Ensuring that you understand the implications of adding a new application to your already extensive list is essential. The extra effort and money you spend now to ensure proper integration will be well worth it if it means avoiding issues with data silos and systems that cannot communicate.
A fully integrated information system will allow you to focus on digitalization and automation, and it will serve as a scalable option that will still work as your business grows and adapts within the market. This can mean the difference between falling behind or outpacing your competition!
Custom Development Services
The best way to eliminate the problems caused by having too many SaaS applications is to invest in custom development services. Instead of worrying about data silos and manual processes, a custom software database will allow you to focus on what is important: running your business.
A centralized custom database application will help you streamline business processes, workflows, and data. By having everything on one single platform, you can increase productivity and collaboration between team members and improve efficiency.
When you work with a custom application development agency like Automate Labs, you will be able to create an enterprise solution that will meet your unique business needs. We aim to build a solution that offers easy integration with your business processes and is user-friendly.
Our platforms are also cost-effective. We can utilize no-code development so that you can avoid the need to hire expensive developers and data scientists. When you purchase a SaaS application, you have to pay the stated price regardless if you plan on using all of the features provided.
With custom software, you only pay for what you need, and any distracting or unnecessary features can be excluded – saving you money and effort in the long run.
You also do not have to worry about long lead times – our projects can be completed in a matter of weeks, so we can have your custom solution to digitize your business up and running in no time!