

Ask HN: Downloadable or SAAS? - brandon272

I want to develop a software product that I envision working best as a web service that people register for. The software could also be packaged as a downloadable product that customers could install on their local servers. I'm sure my customers will largely dictate which product they want once I get it launched, but I am wondering how I should start?<p>From what I've seen, there's a large number of businesses that are only willing to rely on software that they can install and monitor on their own servers. Many have policies where they simply won't use a software product that resides (along with their data) on someone else's servers.<p>While I am going to try and make it as attractive as possible to use my product as a web service (which will include making all of their data fully exportable in an open format), should I start out offering the product as both a web service AND a downloadable product? Should I start out as JUST a web service and gauge customer reaction?<p>The only reason I would prefer to offer the product as a web service only is that it will reduce the amount of time I would have to spend maintaining the downloadable version, and eliminate support and development issues related to it being installed on third party servers running god-only-knows what. I'd rather funnel that time and effort into the web service. Piracy is not necessarily among my list of concerns.<p>What are everyone's thoughts?
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byoung2
I would go SaaS only. The ones who insist on having everything on their
servers are probably going to be high-maintenance customers you don't want to
deal with anyway. Remember the 80/20 rule. The 20% of your clients who want
the download will take up 80% of your time.

You have to convince them that SaaS is the better deal - regular, automatic
updates, tight security, redundant backups, and reliable access - and they
won't want to consider the downloadable version.

You should prefer SaaS because you can charge them more in the long run if you
get them dependent on you, in addition to reducing the setup time and effort.

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turtle4
I feel like you are fooling yourself here. Many small companies want to
download and install not because they are difficult customers, but because
they are either a) operating on a limited budget or b) risk adverse.

As you say yourself, getting them to sign up for SaaS is better for the
developer because you can charge them more long term. By the same token, many
customers just want a simple solution that works, without additional costs.

If I am a small business looking to invest in some software, why would I ever
go with a SaaS from an unestablished company just starting out? As anyone here
on yc should know, -most- companies fail. Odds are if I sign up for SaaS from
an unestablished company (which the original poster's company would be if he
is just starting up), they could very well go under in the future. Why would I
open -my- small business to that risk if there is a competing program
available I could download and install and no longer worry about whether the
service provider will be around? That isn't being difficult, that's just being
responsible.

As I say in another comment, I would probably still start with SaaS, just
because it is easier on the developer starting out. Less worries
re:installation process, fewer platforms to support, etc. But I just disagree
completely with your characterization of customers who prefer a downloadable
product.

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turtle4
IMO, SaaS is good for the developer (of the SaaS), and for the (very) small
business customer. Downloadable is better for the slightly larger business, or
a business that has more technical know-how than software budget.

It follows that since you are the developer, and since your are starting out,
you should favor the method of deployment which favors -you- and then expand
on that as needed/requested. To me that means start out SaaS, and expand your
offering as required.

I disagree with the poster who says that the customers who want downloadable
will be high-maintenance. There may be some, but really the customers who want
downloadable are simply more risk-adverse. We install in-house only currently
(not my decision, but policy nevertheless), and beyond one installation case,
I don't know that we've logged any additional support over 5 years, across
multiple applications. It is just more work for the developer up front to
ensure that your installation process supports all possible configurations you
will be installing to.

