What is the Difference Between SaaS and Managed IT Services?

August 14, 2019

Small and medium-sized businesses these days have various kinds of services available to them in terms of handling any IT-related needs. Managed IT services and software-as-a-service (SaaS) enable you to handle complex technical areas without the added cost of upkeep and installation, on-call staff, and software engineering.

In addition, these outsourced services minimize the costs involved in carrying regular IT tasks and implementation of certain applications. In this blog, we will tackle the differences between managed it services and SaaS and how both resources can help elevate your business.

SaaS

With SaaS, your company can use an existing software program that is operated through the cloud. You and your employees can remotely log in and experience the benefits of the software to accomplish certain tasks such as report presentation, research, payroll, and bookkeeping.

Managed Services

Managed services offer the same benefits from SaaS but they take things up a notch. Most outsourced providers generally deliver additional support by handling both hardware and networking areas. Because they handle routine IT tasks that can be monotonous for in-house IT staff, organizations can concentrate on new projects and product innovation.

SaaS vs. Managed Services

To make the distinction clearer, take SIEM software as an example. SIEM software can be considered an example of SaaS if a developer delivers it remotely.

However, it won't be considered a managed service unless a third-party vendor has more control over IT tasks like monitoring. Managed IT services would not only give you an SIEM software, but provide a dedicated team of experts made of trained staff to process events and security logs.

Another example is Microsoft Office 365, which is SaaS. The software is provided by Microsoft through the cloud, and users are required to pay a subscription fee for the privilege of utilizing it for their business. The price of the subscription will depend on the number of program users.

Cost

One of the primary reasons why SaaS is popular among companies is that it provides a low-cost alternative to conventional, in-house solutions. Through this service, your business is free to scale up or down and implement new products without investing too much on expensive processes.

A managed service provider comes at a higher price, but you still get your money’s worth because they provide a more comprehensive solution. Managed IT companies allow you to enjoy the advantages of SaaS while helping you with better integration, upgrades, and maintenance.

Choosing between the two IT solutions will depend on your business needs. There are companies that require basic software delivered via the cloud to perform a specific function. In this case, SaaS is the most ideal option. For businesses that need to integrate their systems and monitor networks, getting managed IT services is the best way to go.

Whatever option you go for, always think about how important the software required is to your company. As a business owner, you need to ensure that all critical operational matters are addressed and managed properly, including certain exceptions and several sources of information.

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