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?”
The right choice between build vs. buy, or between a SaaS and a premise-based solution, depends on the needs and capabilities of each individual business.
Answering a handful of questions can help a mid-market merchant decide which approach is best for their business:
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 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 usually depend on 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 differentiate based on their product selection, pricing, merchandising, and service – not 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 software that others have already 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?” Whether you’re going to build, buy an on-premise solution, or rent a cloud-based solution, our can help you decide which features to include in your requirements.