Low code solutions vs. SaaS - Which is better for my business?

For SMBs, choosing between Low Code Solutions and Software as a Service (SaaS) is a critical decision. Both types of software have a significant impact on business operations and overall efficiency. Let's explore both options. In this guide, we will discuss the advantages and disadvantages of low-code solutions and SaaS, as well as how they align with the specific needs and goals of the business.

Low Code Solutions

Low Code Solutions require a company to develop the application first, and customization is a primary component of low code to implement anything. These tools are designed to empower SMBs to build and modify applications quickly. Let's look at some of the advantages and disadvantages.

1. Advantages of Low Code Solutions

Low Code Solutions enable SMBs to create applications tailored to their processes, workflows, and needs. While it may take time for employees to adapt to low code platforms, they can be more cost-effective in the long run by reducing the need for expensive developer resources.

Maintenance costs are also low for low code solutions. In this case, SMBs can minimize external costs, and low-code platforms provide greater customization options and flexibility. Their visual development environment also allows some coding for more complex functionality, making them ideal for users with basic coding knowledge or those interested in learning.

2. Disadvantages of Low Code Solutions

Employees may require training to use low-code platforms effectively, which consumes time and resources. Even though it is faster than traditional coding, deploying complex applications can still take time. There could also be security and compliance risks associated with applications created by non-IT staff without proper oversight. Another risk is improper coding practices, where apps are created without adhering to security or scalability standards.

SaaS (Software as a Service)

SaaS (Software as a Service) products are popular for many reasons. They can improve efficiencies, especially for SMBs, which is why more than 70% of SMBs have already invested in SaaS solutions. Entrepreneurs now have access to powerful tools that were previously available only to large corporations.

1. Advantages of SaaS (Software as a Service)

One major advantage of SaaS tools is how easy they are to purchase and implement. SaaS is a cost-effective option that allows SMBs to allocate their limited resources more productively. With a low startup cost, small businesses can easily use effective SaaS software solutions.

As businesses grow, SMBs experience fluctuating demands. Using SaaS for small businesses allows companies to increase or decrease scalability and flexibility as needed. SMBs can easily adjust their subscription plans and software usage as their operations grow or shrink, ensuring they only pay for what they need and avoiding unnecessary spending.

2. Disadvantages of SaaS (Software as a Service)

While SaaS offers many advantages, some risks exist as well. One significant risk is credential theft. Additionally, SaaS users must be aware of data security concerns since they cannot assume that their data is entirely secure.

Most SaaS solutions tend to get slower over time, especially as the number of users increases. While many SaaS solutions provide some degree of customization, they may not fully meet SMBs' procedures or workflows. Additionally, businesses are dependent on the vendor for updates and new features, which can limit control and transparency.

Conclusion

In SMBs, the foundations of SaaS apps and Low Code Solutions differ. SaaS apps offer out-of-the-box solutions, while Low Code Solutions are derived from custom software development. One interesting aspect is that both are increasingly moving into each other's territory. SMBs should carefully consider their unique needs, resources, and long-term goals when deciding which option is best for their business.