The Pros and Cons of a SaaS System
Choosing a SaaS system for your company has proven to be the best cost-effective option for administrative operations in general.
In fact, nowadays, it’s quite challenging to find digital marketing platforms that are not SaaS.
The vast majority of these platforms operate under the Software as a Service model because the nature of the work done with them naturally leads to this structure.
Today, it’s practically standard to work with SaaS systems. It’s highly likely that most companies engaged in digital marketing have implemented at least one of these systems.
However, they come with certain challenges and opportunities that often go unnoticed.
There are positive aspects that, when explored, greatly improve the efficiency and cost-effectiveness of a SaaS system.
Conversely, there are challenges that, if not addressed, hinder its efficiency and the results you can achieve.
Let’s discuss these points today in this article. We’ll explore how to make the most of the SaaS system you’re considering purchasing or are already using.
Shall we?
Are There Digital Marketing Tools That Aren’t SaaS?
Before diving into the challenges and opportunities that SaaS systems bring, it’s important to discuss the hiring model itself.
More specifically: is it possible to do digital marketing today without using SaaS tools?
No, it’s not. While there are certainly tools that don’t operate under the SaaS model, they are not widely popular, and it’s impossible to conduct digital marketing without using any of them.
Even Google’s tools, like Google Ads, are SaaS.
Your website itself will likely be SaaS, as it is built using WordPress or another similar digital tool.
For instance, you won’t find a website-building software package sold on a physical disc.
In fact, it’s highly unlikely you’ll come across a CD for software at all, as was common in the early 2000s.
Thus, the vast majority of your digital marketing tools will be SaaS. And it doesn’t even have to involve a purchase—WordPress is free to use because it’s open-source. Similarly, Google Ads doesn’t charge subscription fees.
The issue is more profound than just subscription fees. There are different types of tools that, although digital, aren’t necessarily SaaS.
Let’s explore these differences in the next section.
In the meantime, check out these articles we’ve prepared on SaaS in general—we discuss what it is, how to hire, and even whether you should become a SaaS company yourself.
➡️ Is the SaaS Business Model Right for Your Company?
➡️ The SaaS Sales Process: Build, Scale, and Earn Big!
What Are the Types of Digital Systems? SaaS, PaaS, and IaaS
Digital solutions today are primarily divided into these three models: SaaS, PaaS, and IaaS.
The key to understanding these three types lies in the first and last letters of the acronyms.
Let’s start with the last letter, S, which stands for Service.
All models under these acronyms—and almost all digital solutions today—are characterized by being services rather than products.
This means the contracted company is offering you a service—the ability to use their tools through their infrastructure.
The first letters of the acronyms indicate what they actually are: S for Software, P for Platform, and I for Infrastructure.
While these distinctions are straightforward on paper, they often blur in practice. For example, SaaS products sometimes behave like PaaS systems.
That said, let’s clarify these differences to better understand the pros and cons of a SaaS system.
SaaS Systems
This refers to Software as a Service, which you typically access through your browser connected to the internet.
However, these systems can also be installed on your computer, as with the Adobe Suite.
The primary characteristic of a SaaS system is that it provides a ready-made software solution with a well-defined purpose.
For example, Leadster offers a SaaS product—our Conversational Marketing chatbot.
You install Leadster on your website and use our infrastructure to access your dashboard via your browser.
This setup establishes clear responsibilities: the user only needs to utilize the software, while the company providing the system is responsible for maintaining it.
This creates opportunities but also presents issues requiring prompt support. We’ll delve further into these later in the article.
PaaS Systems
Here, P stands for Platform, with the full acronym being Platform as a Service. These tools primarily focus on creating other applications.
However, this creation doesn’t require advanced programming skills. PaaS systems generally offer simple development environments with drag-and-drop features and configurable logic, allowing non-developers to create applications.
A great example is Salesforce. It enables the creation of various apps for business applications, ranging from HR to marketing.
Interestingly, Salesforce also offers ready-made software, both created by its users and developed in-house.
For instance, the Salesforce CRM is a SaaS system. However, the original Salesforce is a PaaS system.
The responsibility for the system’s infrastructure lies entirely with the providing company, which handles all development, support, and integration.
IaaS Systems
This model focuses on Digital Infrastructure as a Service. Examples include Microsoft Azure and Amazon AWS.
Here, the company offers infrastructure services, typically cloud servers.
For instance, if you’re building a media website and need storage space for videos that won’t be hosted on YouTube, you’d need server space to accommodate uploads and site visitors simultaneously.
Another example: you are creating an app and need a database. IaaS systems sell space on a server near your location so you can store whatever is needed on them.
IaaS contracts are quite technical and are directly related to app development.
What Challenges Does a SaaS Contract Bring?
Today, SaaS contracts are almost standard. I must emphasize this in the article because it’s a reality: working in digital marketing means working with SaaS systems.
However, beginners in digital marketing need to be aware of some challenges these contracts present.
These challenges aren’t particularly complex but must be understood upfront to avoid issues later.
You’ll notice that many of these challenges aren’t even directly related to the platforms themselves but rather to their usage, process organization, and more.
Let’s explore these points in detail:
System Implementation
The very process of implementing a SaaS system can be a bit daunting for those who have never undergone it.
Implementation takes time—this is a key point often overlooked when choosing a SaaS system.
Of course, this depends on the platform. For example, Leadster can be implemented and fully operational within a single day.
But there are more complex systems that will require, in addition to time for them to be operated, also extensive training to certify at least one member of your team as an expert.
Think of at least one month for the complete implementation of a SaaS system. But understand that there are some so complex that this month easily turns into three.
Business Intelligence systems, for example, require time for implementation and data interpretation, which will result in strategic dashboards.
There is also another difficulty with system migration, which is much more complicated. We will talk about them below:
System Migration
Implementing a SaaS system from scratch is much simpler than migrating from one system to another.
This is especially true for more robust systems that handle large volumes of information.
For example: migrating from one marketing automation platform to another can be quite complex, as it involves lead lists, email templates, automation settings, etc. Transferring all this takes considerable time.
In addition to time, it also requires effort: you’ll need the support of both the new tool provider and the one being replaced.
Migration is a process that demands significant commitment from your team. It’s best to undertake it during quieter periods, with lower demand, to avoid unnecessary complications.
The complexity of migration can lead to a situation known as vendor lock-in. Let’s discuss that next.
Always Online
This is a difficulty that some more advanced SaaS platforms are already managing to overcome, but it is still a problem for most.
SaaS platforms need to be constantly connected to the internet to function. The moment you lose the connection, you also lose access to the system.
This is complicated but also understandable — the system operates through the internet, so without the internet, no system.
However, at the same time, this is the standard for subscriptions nowadays. What we are experiencing today is a fundamental dependency on the internet as a work tool.
Without it, we cannot work.
But of course: in many cases, not having internet makes it impossible to work in general nowadays. So, this isn’t such a big problem, especially since most companies don’t face connectivity issues these days.
Support and SLA
One of the biggest challenges for those who adopt a SaaS system is not fully understanding the SLA and the tool’s support policies.
SLA stands for Service Level Agreement. It’s the document where the service provider outlines its responsibilities in delivering the service.
It’s quite common for SaaS providers to receive frequent support requests during the initial months of implementation and usage. It’s also common for these requests to exceed the predetermined scope or even reasonable limits.
For example: a company assigns an inexperienced employee to operate the system. They might contact support daily to report non-existent bugs.
This could lead to extra costs if the SLA allows for total support but charges for hours. Alternatively, it could result in unpleasant situations, like denial of support.
Always discuss the SLA with the SaaS provider you’re considering. If they don’t have a ready SLA to share, it’s better to look elsewhere.
What Do SaaS Systems Enable for a Business?
The downsides we’ve discussed so far aren’t directly tied to the operation of the SaaS system itself.
In fact, they’re more about the realities of running your company.
None of these challenges are caused by using SaaS systems. On the contrary, this type of system enables far more than it hinders.
The SaaS revolution has brought significant democratization of tools and systems that were once only accessible to large corporations.
Along with this democratization of tools, there has also been a democratization of business, administrative, and marketing theories that were once dominated by market giants.
Let’s explore these points and others in more detail throughout this section. Let’s go:
Finally Doing What Your Business Was Meant to Do
Advanced marketing tools before the SaaS boom were, for the most part, proprietary.
Even pre-HubSpot, but still in the 2000s, Salesforce was the best option for creating marketing automation apps.
But Salesforce has always been very expensive, and its operation was never simple.
With SaaS tools, access to these resources has been democratized in both cost and complexity.
More affordable SaaS systems started being adopted by companies that previously wouldn’t have dreamed of such possibilities.
At the same time, tasks that were once highly specialized—like mass email campaigns based on Sales Funnel stages—can now be accomplished with just a few clicks.
With SaaS systems, businesses no longer have to deal with basic limitations. Instead, they can focus on real challenges: growth, customers, and the market.
SaaS Systems Adapt to Your Strategy’s Growth
A specific SaaS system relies on the success of the strategy it supports; otherwise, there’s no reason to keep using it.
For example: you have a digital marketing agency and signed up for Leadster. Our chatbot’s primary goal is to generate leads on your site.
Because of this, you need to generate leads on your site. If you’re not generating them, you won’t see a reason to continue working with us.
So, we’ll have regular meetings with you to track progress. We’ll develop resources to assist you. We’ll care about your success.
This is something SaaS systems have brought that wasn’t as common in the old software sales model—one that’s nearly inconceivable in today’s era of fast internet.
Almost all B2B SaaS systems have this focus. Some B2C ones do as well.
For example: yoga apps send regular reminders about scheduled activities. Nubank helps you track your spending with graphs and goals.
This is part of SaaS marketing strategies, which prioritize not just sales but usage—remember, payment is monthly!
Unexpected Growth for Your Segment and Size
Smaller companies can sometimes achieve quick success, but growing beyond expected levels for their size and segment is quite challenging.
For example: a local clothing store. Everyone reading this article likely knows at least one such store that has been in the same location for 20 years.
These businesses often struggle to grow, not due to low sales, but because of limitations—sometimes even physical ones.
With SaaS systems, previously unthinkable opportunities arise. A website built on WordPress uses a SaaS system—WordPress itself.
The website enables nationwide sales at much lower costs—just shipping fees and interstate taxes.
This business can move beyond the neighborhood and sell across the country with minimal investment. For marketing expansion, they can advertise on Google Ads, Social Ads, automate marketing, generate leads automatically, etc.
All of this is possible with SaaS systems.
SaaS systems are the best choice for marketing platform adoption today. By far. There’s no question about it.
They allow you to do much more while spending much less.
See how you can adopt a SaaS system by starting a free trial with Leadster today.
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