Is SaaS development better than packaged software?

Technology serves the same purpose for a company as oxygen does for a person in today’s era. It constantly improves and evolves at a light speed for better deliveries. 

SaaS development has become the norm in the age of cloud computing. The advantages of the SaaS apps much outweigh the drawbacks. The extensive acceptance of SaaS development is based on its obvious and irrefutable benefits. 

It is not a miracle that the Market Value of SaaS (Software as a service) was estimated at $113.82billion in 2020, which was exceptionally grown to $130.69 billion in 2021. Adding to more surprise, this market segment is expected to touch $716.52 billion by 2028. It is the tremendous compound annual growth rate of 27.5% for the assessment period 2021-2028.

There are more than 1000 SaaS companies in India. However, many businesses continue to rely on packaged or traditional software. Let’s understand the differences between the two and why SaaS is better than traditional software.   

What is SaaS (Software as a service)?

SaaS is a cloud-based software service that allows the users to access applications via internet and benefit from licenses and subscriptions. These SaaS development products are works in the cloud and available to purchase for the customers online.

SaaS aims to provide organisations with the tools they require to develop and sustain their products. This can be done without having to build a proprietary tech skeleton from the ground up.

What is Packaged Software?

Packaged software is a more traditional form of software that requires it to be installed and executed on a computer. It lessens the dependency on the system. They’re connected via a remote server. The business data and programs on the server are accessible to all employees who utilize the hardware.

SaaS vs. packaged software: What Are the Advantages?

SaaS has so many benefits that make it a clear winner over packaged software. 


The functionality of SaaS development is excellent. The critical feature of SaaS is that it is distributed via the internet. As a result, consumers can access their software solutions from anywhere. Because each user has their own unique login, they can log in from any device, including laptops, mobile phones, tablets, etc. As a result, the working process is more convenient and hassle-free.

On the other hand, on-premise software must be installed on the user’s PC.

Software deployment

SaaS is a cloud-based service that does not require a lengthy installation process. Signing in with your credentials grants you access to the software, and you can begin using it right away.

Traditional software, on the other hand, must be installed. Some bundled software requires specific hardware and settings before it can be installed. Above all, you’ll need someone with IT abilities to keep track of everything. Therfore, it takes a long time to get started.


Hardware resources or maintenance are not a concern with SaaS. Cloud-based implementation shortens the time it takes to complete a project. As a result, the SaaS Company can acquire value more quickly.

On the other hand, traditional software necessitates long-term resource planning to assess the application’s scalability concerning the company’s growth. There are many tasks and maintenance items that you must deal with to keep your business functioning well, and it takes time.


SaaS offers the distinct advantage of requiring users to pay only for their services. You also have access to all of the tools you require. SaaS can be customised to meet the client’s needs at an additional expense. Some SaaS vendors also provide free trials, so you may try out the program before buying it.

In traditional software, the buyer must make a one-time payment in which the sum is paid in advance.


You need not to buy additional hardware with SaaS, so no maintenance equipment is necessary. This eliminates extra expenses. It is also essential to make things simple for clients without worrying about IT support expenditures. Multi-tenancy reduces costs by allowing SaaS startups and organisations to create new SaaS apps for many users while sharing the same infrastructure.

Customers have to spend a lot of money to get hardware resources in traditional software. Each computer system must go through the same software installation process and maintenance and update costs, which is costly. 


The SaaS apps hosted in the cloud are spread over all of the servers. With the protection of data loss and downtime due to server failure, more flexibility is possible with SaaS development.

Traditional software is less adaptable and incapable of consistently delivering high performance. A license will be required for each employee in the company. 

This limits the software’s capability and reduces productivity due to maintenance. 


SaaS apps come with no risks. Cloud-based technology is used to claim credit. If one of the data centers faces a disaster, the other data centers help to keep operations and services running.

All data is stored within the organisation in traditional software. When a company encounters an outage and no backup is available, vital information is frequently lost.


The requirement for physical server space is eliminated for SaaS startups and SaaS businesses. Updates are handled by SaaS businesses and distributed regularly without charge. This allows you to make changes whenever you choose.

Traditional software is frequently quite expensive. It also requires regular updates with new features and the cost of software licenses for each user.


Every successful enterprise needs a scalable infrastructure which is capable of handling hybrid integration, data transformation, secure file transmission, and end-to-end visibility of all data passing through their complex ecosystems. The multi-tenant architecture plays a prominent and vital role in developing SaaS software applications.

EDIIIE is one of the leading company that provide mobile game development services, with extensive experience in digital and web marketing. It enables us to design, build, and combine innovative customer and developer interaction solutions with robust creative platforms. Our SaaS development platform makes it simple for entrepreneurs to get started developing SaaS apps and communicating with customers as soon as possible.

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