SaaS solutions are the darlings of the tech community, growing at the direct expense of premise-based software. This is certainly true for Order Management Systems (OMS). Yet premise-based solutions still make up half of the OMS market. And some companies are still building their own homegrown solutions.
There are good reasons for each. And we’ve recently published a white paper that can help you decide which approach makes the most sense for your organization. It’s titled, “Home Grown, On-Premise, or SaaS: Which OMS is Best for Me?”
Some of the key questions that help mid-market merchants decide which fits their business include:
Build vs. Buy
- Does my company have unique, differentiating needs that are not supported by off-the-shelf OMS solutions? Can they be supported with customization?
- Is software development a core differentiator for our commerce business? Is it an area in which we can afford to focus?
SaaS vs Premise-Based
- How much customization makes sense for my company? Are we customizing our OMS to meet unique needs? Or are we customizing to make up for a lack of basic core infrastructure?
- How strong is our data center? Can we match the enterprise strength data centers of a SaaS provider? Is that a cost we want to manage on our own?
The answers tend to shift with a company’s size.
- SaaS is typically best for mid-market merchants that don’t yet have the scale to manage a state-of-the-art data center and don’t differentiate on their technology.
- Premise-based solutions, more easily customizable, yet more expensive to manage, are more appropriate for larger companies, in the $500mm+ revenue range. These retailers have more complex infrastructure, have more custom needs, and have the scale to manage a top-notch data center.
- Homegrown solutions, even for the largest merchants, must be core to their differentiation. The expense of building something from scratch, that others have built for a large audience, must be justified by a significant bottom line opportunity.
You can learn much more by downloading our whitepaper, “Home Grown, On-Premise, or SaaS: Which OMS is Best for Me?”