SaaP or SaaS: Which Should You Choose?

Is software a product or a service? The software can be confusing. As a business owner, it’s important to get the right equipment. Software always ensures better organization and offers you a more accurate way of monitoring your employees. But, when it comes to software, there are often many different options to choose from. No matter the industry, you’ll need to make some tough decisions. Where do you start? 

Before you decide which software to use for your business, you need to know the difference between SaaP and SaaS. What do they both mean? 

SaaP stands for software as a product. It requires you to purchase software which you will then host yourself. 

SaaS stands for software as a service. The software is hosted in the cloud and you pay a regular fee.

To gain a greater understanding of the two and decide which is right, let’s delve deeper into the differences and benefits of both. 



There are a number of differences between SaaP and SaaS. SaaP was invented before SaaS, which means it’s more established. With SaaP you make a one-off purchase, which tends to be a fairly hefty fee, depending on the type of software you’re investing in. 

Differently, with SaaS you make regular smaller fees. This is because of the way they are both hosted. SaaP is hosted by you, which means you take responsibility of the software. SaaS is stored in the cloud and hosted over the internet, which is essentially what you are paying for.  

With SaaP being older and more established, it tends to be a more traditional option. However, experts are arguing that SaaS is a more technologically advanced option with more benefits for your business. So, what are the pros and cons of SaaP and SaaS? 



There are lots of great things about SaaP. For example, many businesses use it in different forms, which means that it runs well and gets the job done. New employees to your business will know how it works and it doesn’t feel complex. Most SaaP solutions need internet access, but they often have an option to run offline. 

While there are plenty of benefits to SaaP solutions, people criticize SaaP because upgrades aren’t included in the initial price. This means that your software could become slow if you don’t pay the additional fees, and you’ll miss out on new features. SaaP can also only be used on the device that’s hosting the software.



SaaS is becoming more popular with business owners, simply because it’s more streamlined and often cost-effective. The regular fees mean that all upgrades are included in the price and therefore costs are transparent. It’s also a favorable option as all it requires is the internet to run, meaning that it can be used on any device.  

Generally, SaaS is becoming more frequently used and is leading the software game. Most business owners would advise the use of SaaS to stay relevant and reap the rewards of a more streamlined service and additional features. 


Take away

If you’re not sure which way to go, SaaS is probably the answer. Ask around among similar businesses to see which option they prefer.