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        • What is APY in Crypto?
        • Yield Farming Platforms
        • Yield Farming vs Staking
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        • Best DeFi Apps
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        • DAO Crypto Projects
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    • Bitcoin Price Prediction
      • ALICE Price Prediction
      • ApeCoin Price Prediction
      • Axie Infinity Prediction
      • Battle Infinity Prediction
      • Cardano Price Prediction
      • Chia Coin Price Prediction
      • DeFi Coin Price Prediction
      • Dogecoin Price Prediction
      • Dogelon Mars Prediction
      • Ethereum Price Prediction
      • Floki Inu Price Prediction
      • Hoge Coin Price Prediction
      • LBLOCK Price Prediction
      • LUNA Price Prediction
      • Pi Coin Price Prediction
      • Polygon Price Prediction
      • SafeMoon Price Prediction
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      • Stepn GMT Price Prediction
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    • Best Altcoins
      • Buy Battle Infinity
      • Buy Bitcoin Cash
      • Buy Binance Coin
      • Buy Celo
      • Buy Cardano
      • Buy Cartesi
      • Buy Chiliz
      • Buy Cronos
      • Buy Dash
      • Buy EOS
      • Buy ENS
      • Buy Ethereum
      • Buy Ethereum Classic
      • Buy FTX Token
      • Buy HBAR
      • Buy IOST
      • Buy IOTA
      • Buy Litecoin
      • Buy Livepeer
      • Buy Loopring
      • Buy Lucky Block
      • Buy LUNA 2.0
      • Buy LUNC
      • Buy Neo
      • Buy Pitbull Coin
      • Buy Polkadot
      • Buy RadioCaca
      • Buy Solana
      • Buy Spark
      • Buy VeChain
      • Buy XRP
      • Buy ZCash
    • Best Crypto Exchanges
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      • Binance Review
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      • Margin Trading Exchanges
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    • Best Meme Coins
      • Best Dog Cryptos
      • Buy Baby Doge
      • Buy Dogecoin
      • Buy Floki Inu
      • Buy Kiba Inu
      • Buy Shiba Inu
      • Buy Tamadoge
    • Best DeFi Coins
      • Buy 1inch
      • Buy Aave
      • Buy Algorand
      • Buy Ankr
      • Buy Avalanche
      • Buy Balancer
      • Buy Bancor
      • Buy Chainlink
      • Buy Compound
      • Buy Cosmos
      • Buy Curve
      • Buy DeFi Coin
      • Buy DYDX
      • Buy Fantom
      • Buy Kyber Network
      • Buy Maker
      • Buy Polygon
      • Buy Ren
      • Buy Serum
      • Buy Storj
      • Buy Sushiswap
      • Buy Tezos
      • Buy Uniswap
    • Best Web 3.0 Coins
      • Buy Basic Attention Token
      • Buy Biconomy
      • Buy Filecoin
      • Buy Theta
  • NFTs
    • How To Buy NFTs
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      • Best Utility NFT Projects
      • Buy NFTs on Binance
      • How to Flip NFTs
      • Make Money With NFTs
    • Best Metaverse Coins
      • Buy ApeCoin
      • Buy Axie Infinity
      • Buy Decentraland
      • Buy DeFi Kingdoms
      • Buy Enjin
      • Buy Gala
      • Buy GMT
      • Buy Immutable X
      • Buy The Sandbox
    • NFT News
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      • Cheapest NFT Projects
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      • New NFT Projects
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      • Sport NFT Drops
    • Invest in the Metaverse
      • Best Metaverse Apps
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      • How to Invest in NFTs
      • Metaverse Projects
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      • How to Day Trade Stocks
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      • Islamic Brokers
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Business 2 Community
  • Investing
      • Best Cryptos
      • Best Beginner Cryptos
      • Best Crypto Under $1
      • Best Crypto Winter Tokens
      • Best Emerging Cryptos
      • Best ERC20 Tokens
      • Best Future Cryptocurrency
      • Best Utility Tokens
      • Coins to Buy on the Dip
      • Fastest Growing Crypto
      • Hottest Cryptos Right Now
      • Most Promising Cryptos
      • Next Crypto to Explode
      • Invest in Crypto
      • How to Invest in Bitcoin
      • How to Invest in DeFi
      • Long Term Investments
      • Low Market Cap Cryptos
      • Most Undervalued Cryptos
      • Penny Cryptocurrencies
      • New Cryptos
      • Best Crypto ICOs
      • Best Crypto IDOs
      • Best Crypto IEOs
      • Best Crypto STOs
      • Best Crypto Crowdsales
      • Best Crypto Presales
      • Best Crypto Private Sales
      • Buying Coins Pre Launch
      • Crypto Games
      • Best Blockchain Games
      • Best GameFi Cryptos
      • Best Gaming Crypto Coins
      • Best Play to Earn Games
      • Crypto News
      • Best Crypto Reddit
      • Best Crypto Signals
      • Crypto Tiktok Trends
      • Crypto Youtube Channels
      • Twitter Crypto Trends
      • Crypto Wallets
      • Best Cardano Wallets
      • Best DeFi Wallets
      • Best Ethereum Wallets
      • Best XRP Wallets
      • Crypto Bank Accounts
      • How to Spend Bitcoin
      • How to Spend Ethereum
      • Bitcoin Casinos
      • Best Bitcoin Gambling Sites
      • Best Crypto Lotteries
      • Bitcoin Blackjack Sites
      • Bitcoin Roulette Sites
      • Bitcoin Slots Sites
      • Ethereum Casinos
      • Earn Free Crypto
      • Best Crypto Airdrops
      • Best Crypto Faucets
      • Best Crypto Giveaways
      • Earn Free Bitcoin
      • Make Money With Crypto
      • Earn Interest on Crypto
      • Aqru Review
      • Best Staking Coins
      • Crypto Interest Accounts
      • Crypto Lending Platforms
      • Crypto Loan Sites
      • Crypto Savings Accounts
      • Crypto Staking
      • Earn Interest on Bitcoin
      • Earn interest on Ethereum
      • Earn Interest on Stables
      • What is APY in Crypto?
      • Yield Farming Platforms
      • Yield Farming vs Staking
      • DeFi Crypto Guides
      • Best DeFi Apps
      • Best DeFi Interest Rates
      • Best DEX Coins
      • DAO Crypto Projects
      • DeFi Lending Platforms
      • DeFi Staking Platforms
      • DeFi Swap Exchange
      • DeFi Yield Farming
      • Worldwide Crypto Guides
      • Best Africa Crypto Projects
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      • Best Dubai Crypto Projects
      • Buy Bitcoin AU
      • Buy Bitcoin CA
      • Buy Bitcoin DE
      • Buy Bitcoin IN
      • Buy Bitcoin SG
      • Buy Bitcoin UAE
      • Buy Bitcoin UK
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      • Crypto Exchanges AU
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      • Bitcoin Mining Sites
      • Best Coins to Mine
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      • Monero Mining
      • Crypto Marketing
      • Financial PR Agencies
      • ICO Marketing
      • Web3 Marketing
  • Cryptocurrency
      • Buy Crypto
      • Buy Bitcoin
      • Buy BTC with Apple Pay
      • Buy BTC with Credit Card
      • Buy BTC with Bank Wire
      • Buy BTC with eToro
      • Buy BTC with Paypal
      • Buy BTC with Prepaid Card
      • Bitcoin Price Prediction
      • ALICE Price Prediction
      • ApeCoin Price Prediction
      • Axie Infinity Prediction
      • Battle Infinity Prediction
      • Cardano Price Prediction
      • Chia Coin Price Prediction
      • DeFi Coin Price Prediction
      • Dogecoin Price Prediction
      • Dogelon Mars Prediction
      • Ethereum Price Prediction
      • Floki Inu Price Prediction
      • Hoge Coin Price Prediction
      • LBLOCK Price Prediction
      • LUNA Price Prediction
      • Pi Coin Price Prediction
      • Polygon Price Prediction
      • SafeMoon Price Prediction
      • Samoyed Coin Prediction
      • Shiba Inu Price Prediction
      • Stepn GMT Price Prediction
      • SXP Coin Price Prediction
      • VeChain Price Prediction
      • XRP Price Prediction
      • Best Altcoins
      • Buy Battle Infinity
      • Buy Bitcoin Cash
      • Buy Binance Coin
      • Buy Celo
      • Buy Cardano
      • Buy Cartesi
      • Buy Chiliz
      • Buy Cronos
      • Buy Dash
      • Buy EOS
      • Buy ENS
      • Buy Ethereum
      • Buy Ethereum Classic
      • Buy FTX Token
      • Buy HBAR
      • Buy IOST
      • Buy IOTA
      • Buy Litecoin
      • Buy Livepeer
      • Buy Loopring
      • Buy Lucky Block
      • Buy LUNA 2.0
      • Buy LUNC
      • Buy Neo
      • Buy Pitbull Coin
      • Buy Polkadot
      • Buy RadioCaca
      • Buy Solana
      • Buy Spark
      • Buy VeChain
      • Buy XRP
      • Buy ZCash
      • Best Crypto Exchanges
      • Best Altcoin Exchange
      • Best Metaverse Platforms
      • Best Crypto Apps
      • Best DeFi Exchange
      • Best P2P Exchange
      • Binance Referral Bonus
      • Binance vs Coinbase
      • Binance Review
      • Best Binance Alternatives
      • Best Coinbase Alternatives
      • Bitstamp Review
      • Bitstamp Sign Up Bonus
      • Coinbase Review
      • Coinbase Sign Up Bonus
      • Crypto.com Review
      • Crypto.com Sign Up Bonus
      • Crypto.com Visa Card
      • Crypto Credit Cards
      • Crypto Tax Software
      • Margin Trading Exchanges
      • Social Trading Platforms
      • Best Meme Coins
      • Best Dog Cryptos
      • Buy Baby Doge
      • Buy Dogecoin
      • Buy Floki Inu
      • Buy Kiba Inu
      • Buy Shiba Inu
      • Buy Tamadoge
      • Best DeFi Coins
      • Buy 1inch
      • Buy Aave
      • Buy Algorand
      • Buy Ankr
      • Buy Avalanche
      • Buy Balancer
      • Buy Bancor
      • Buy Chainlink
      • Buy Compound
      • Buy Cosmos
      • Buy Curve
      • Buy DeFi Coin
      • Buy DYDX
      • Buy Fantom
      • Buy Kyber Network
      • Buy Maker
      • Buy Polygon
      • Buy Ren
      • Buy Serum
      • Buy Storj
      • Buy Sushiswap
      • Buy Tezos
      • Buy Uniswap
      • Best Web 3.0 Coins
      • Buy Basic Attention Token
      • Buy Biconomy
      • Buy Filecoin
      • Buy Theta
  • NFTs
      • How To Buy NFTs
      • Best NFT Apps
      • Best NFT Games
      • Best NFT Giveaways
      • Best NFT Lawyers
      • Best NFT Lottery Sites
      • Best NFT Presales
      • Best NFT Wallets
      • Best Utility NFT Projects
      • Buy NFTs on Binance
      • How to Flip NFTs
      • Make Money With NFTs
      • Best Metaverse Coins
      • Buy ApeCoin
      • Buy Axie Infinity
      • Buy Decentraland
      • Buy DeFi Kingdoms
      • Buy Enjin
      • Buy Gala
      • Buy GMT
      • Buy Immutable X
      • Buy The Sandbox
      • NFT News
      • Celebrity Backed NFTs
      • Celebrity NFT Owners
      • Cheapest NFT Projects
      • Coolest NFT Projects
      • Most Expensive NFTs
      • New NFT Projects
      • NFT Calendar
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      • Invest in the Metaverse
      • Best Metaverse Apps
      • Best Metaverse Games
      • How to Invest in NFTs
      • Metaverse Projects
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      • NFT Land Projects
      • Best NFTs To Buy
      • Azuki NFTs
      • CryptoPunks NFTs
      • Lucky Block NFTs
      • PolygonPunks NFTs
      • Prime Ape Planet NFTs
      • VeeFriends NFTs
      • World of Women NFTs
      • NFT Marketplaces
      • Binance
      • Crypto.com
      • DraftKings
      • Looksrare
      • Magic Eden
      • NFT Launchpad
      • NFT Music Platforms
      • OpenSea
      • Rarible
  • Stocks
      • Types of Stocks
      • Best Biotech Stocks
      • Best Bitcoin ETFs
      • Best Blockchain Stocks
      • Best Cannabis Stocks
      • Best Cheap Stocks
      • Best DeFi Stocks
      • Best Dividend Stocks
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      • Best 5G Stocks
      • Best Upcoming IPOs
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      • Company Stocks
      • Buy Adobe Stock
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      • Buy Disney Stock
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      • Buy Ford Stock
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      • Buy Nio Stock
      • Buy Oil Stocks
      • Buy Stocks on eToro
      • Buy Stocks via Credit Card
      • Buy Stocks with PayPal
      • Invest in Stocks
      • Invest in NFT Stocks
    • Trading
        • Best Trading Platforms
        • Best Investment Apps
        • Capital.com Review
        • Copy Trading Platforms
        • Demo Accounts for Stocks
        • Day Trading Platforms UK
        • eToro Review
        • eToro Review UK
        • eToro Review ZA
        • How to Day Trade Stocks
        • How to Trade Commodities
        • How to Trade Crypto
        • How to Trade ETFs
        • How to Trade Gold
        • How to Trade NFTs
        • How to Trade Oil
        • Islamic Brokers
        • Low Margin Rate Brokers
        • Paper Trading Platforms
        • XTB Review
        • Best Forex Brokers
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        • Best Forex Signals
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        • Trading Robots
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    Digital & Social⟩Online Marketing

    How to Evaluate Your Ecommerce Needs: A Breakdown of Benefits for Licensed and SaaS Solutions

    author imageKane Pepi Last updated: 3 March 2015
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    I am often asked by partners, employees, prospects and customers to provide insight on the ecommerce landscape and what trends I see shaping the industry.

    One of the current “hot topics” is the question of whether successful online merchants should opt for a licensed or SaaS-based solution for their ecommerce platform. Here are the common definitions of the two solutions:

    • Licensed – A license for a platform built by a third-party vendor and maintained internally or by a Solutions Integrator (SI) usually hosted on premise or with a 3rd party hosting vendor.
    • Software as a Service (SaaS) – A subscription-based solution that is built and maintained by a third-party vendor and may be hosted in the “cloud.” Customizations and integrations may be handled internally or by an SI.

    Here we have contrasting solutions to tackle what would seemingly be the same problem: providing business owners a solid and reliable ecommerce solution. With the amount of questions I have fielded in the last year or so regarding this decision, clearly the evaluation of these two solutions is daunting. After thorough research, as well as some fierce debate with my expert team of developers, we came up with a helpful list of characteristics of each solution that may help you with your decision:

    1. Total cost of ownership (TCO)
    2. Ability to integrate with business systems
    3. Frontend development flexibility
    4. Backend scalability
    5. Actual implementation time

    Total Cost of Ownership

    With the pace at which the online industry is moving, let’s face it, today’s great sites will be considered antiques within the next five years. That’s an important consideration when estimating your Total Cost of Ownership (TCO) for your ecommerce platform. I recommend setting a course for three to five years. When estimating costs, remember to include all upfront costs (e.g., design and development costs, deployment costs), as well as ongoing maintenance of the platform (ongoing design and development costs). Remember to include the cost of your own internal resources involved in all of these calculations, too.

    Licensed

    The leading licensed solutions usually charge an annual license fee based on some sort of usage metric. For example, Magento charges license fees on a per-server basis. Therefore, as your ecommerce business becomes more and more successful in the short and long term, you will have to scale your server capacity and incur higher overhead as a result. Additionally, you’re responsible for redundancy. You’ll need to pay for those benchwarmer servers to sit idle in case they’re needed during an unexpected spike, and you’ll likely be hit for yet more license fees for this increased usage of the licensed platform.

    You’ll need a team of skilled developers to architect, build, configure, customize, integrate, test, deploy, support, maintain and enhance the platform.

    Furthermore, you’ll need a team of skilled developers to architect, build, configure, customize, integrate, test, deploy, support, maintain and enhance the platform. You may choose to grow an in-house team (read: expensive) or outsource these efforts to a reputable Solutions Integrators (read: hard to find without getting burned repeatedly).

    SaaS

    Perhaps your organization doesn’t have the ways or the means of assembling and putting to work an effective technical team –– in-house or outsourced –– to develop and maintain a platform. Or maybe you want to deploy those resources elsewhere. If so, you should consider outsourcing the design, building and maintenance of the platform to a SaaS provider for a monthly subscription fee. Research has shown that, over a four-year period, the TCO of SaaS solutions can be nearly 50% less than those built in-house or licensed from a third party.

    Licensed vs SaaS Blog Image

    Ability to Integrate with Business Systems

    Most retailers have as many as 15 different backend technologies in their data center that work together to power their site.

    Your ecommerce platform doesn’t operate independently from the rest of your business’ tools and systems, which may include ERP (such as Jagged Peak, Oracle, SAP, Epicor, MS Dynamics), CRM (such as Salesforce, Sugar), Order Management Systems, Shipping and Fulfillment platforms, Email Integrators (such as Listrak), Tax tools (Avalara), or Analytics and Optimization tools (such as Optimizely). It is critical that your ecommerce platform integrates as seamlessly as possible with all of the tools and systems you are using to operate your business successfully.

    Licensed

    If you’re headed down this path, establish that you have suitable resources at your disposal in order to build and maintain your site. In other words, make sure you have an SI and/or an IT team that can utilize a licensed API to generate a custom integration.

    Modern licensed platforms will provide APIs with which you’re in-house IT team or system integrators will need to become familiar. But remember, you likely won’t get any support from the platform vendor if it even remotely appears that your integration interfered with the core of the platform. Therefore, your only recourse is with your development team should you need to investigate, diagnose and fix any problems on the integration.

    SaaS

    There is a misconception in the industry that licensed ecommerce solutions are more customizable in terms of integrations with other systems. True, licensed solutions offer robust abilities to customize via integrations, but SaaS platforms are quickly closing in on that competitive advantage.

    Licensed solutions offer robust abilities to customize via integrations, but SaaS platforms are quickly closing in on that competitive advantage.

    As with the licensed model, SaaS solutions provide APIs, allowing the necessary hooks for integration needs. Any integration efforts on the SaaS approach will require development time, so having the right team in place is critical.

    Frontend Development Flexibility

    Ecommerce companies need to be able to craft a site that is both unique and user friendly. That’s basic. So, when deciding between licensed and SaaS, what you really want to be focused on is whether your platform can continue to support your desired enhancements to the site.

    A strategic online merchant is always testing their site to improve conversion rates. You’ll want a flexible platform that enables you to move on A/B testing, for example, with speed and efficiency across all devices (i.e., mobile, tablet, desktop). Fortunately, both the licensed and SaaS platforms we work with offer very flexible front ends, enabling your marketing and development efforts to be as effective as possible.

    Backend Scalability

    Having your site handle an average day’s traffic is one thing, but you need to ensure your platform can also scale. It needs to be able to handle business growth over time, as well as respond in an instant to a traffic spike. Not only do you want your site to stay “up” during times of high traffic, it needs to continue to load quickly. You’ll need to consider the database redundancy, separate admin servers, server optimization and upgrades.

    Licensed

    You must make sure your hosting provider has the capacity to serve a surge of customers, particularly if you run heavy promotions that target individual customer segments or if your business model is based on timed/flash sales.

    In anticipation for planned and unexpected traffic spikes, it’s wise to provision additional servers with a load balancer and conduct periodic load-testing.

    In anticipation for planned and unexpected traffic spikes, it’s wise to provision additional servers with a load balancer and conduct periodic load-testing. Ensure you have the adequate time, attention and budget to allocate to these efforts. Think about it, how much would four hours of zero sales have cost you during your last peak?

    SaaS

    As I’ve already mentioned, maintaining a fully redundant, optimized environment of servers can be very impractical and cost-prohibitive for many merchants. Good SaaS solutions are constantly prepared to handle surges in site traffic by taking on this burden for you by being responsible for their own highly available, secure and robust server infrastructure. Ultimately, for you as a merchant, you can enjoy freeing up your time and budget to focus on your business and revenue-driving efforts.

    Implementation Time

    Research shows that the hidden factors of implementation — such as preparing data for the new system, importing data, establishing process changes, configuration management and training staff and any external partners — can often take up most of the time required to set up a new platform.

    Licensed

    Development efforts also include dealing with the challenges of data sanitation, importation management and ongoing refinement of that data. Don’t forget to include these costs in your TCO calculations.

    SaaS

    While there are still the same data challenges with SaaS as there are with licensed approaches, great SaaS vendors are committed and invested in ensuring you’re a long-term customer. This means that their support teams (and SI partners) go the extra mile to help you implement their solution efficiently and effectively.

    SaaS have a distinct edge over the licensed solutions available today due to their ability to respond to market trends in a much more agile fashion.

    In fact, I’ve noticed in the last nine to 12 months that the customer service and automatic upgrades rolled out to all SaaS customers have meant that I consider SaaS to have a distinct edge over the licensed solutions available today due to their ability to respond to market trends in a much more agile fashion.

    Choosing the right ecommerce solution is a big decision, and not one that should be made in haste. Start with these five things when weighing your decision, and don’t be afraid to ask your vendors plenty of questions.

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      This article originally appeared on The Bigcommerce Blog and has been republished with permission.
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    Author: Kane Pepi

    Kane Pepi is an experienced financial and cryptocurrency writer with over 2,000+ published articles, guides, and market insights in the public domain. Expert niche subjects include asset valuation and analysis, portfolio management, and the prevention of financial crime. Kane is particularly skilled in explaining complex financial topics in a user-friendly

    … View full profile ›


    More by this author:
    • VoIP Basics: Everything Beginners Should Know!
    • Bitcoin Investment, Trading & Mining: The Ultimate Guide for Beginners
    • Is This a Better Way to Set Your 2020 Goals and Resolutions?

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