Historically there has always been consultancies building 'bespoke' software for local companies. For example the CRM market usually had lots of local companies who built and maintained a CRM and would do add ons etc. for customers.
Fast forward 20+ years later, that type of work is essentially the SAAS apps you see popping up. It's not a very capital intensive business to sustain so with a few thousand customers you could have a pretty healthy company and continue product development / grow your customer base.
Why do people go for these new SAAS apps ? I've seen a few reasons
1) Pricing is somehow better
2) Integration and or support is more personal so the customer (usually a business stakeholder) prefers it.
3) Some specific feature exists that is important to the customer i.e ease of deletion for GDPR requests
4) CTO / CIO / Techie prefers it.
Why I've seen people not go with the open source alternatives is the same oul reason. Focus. If you've less than 30 people at your org, unless one of those tools has a specific team covering that area - it will just split focus and end up in a suboptimal setup and create pain points in terms of support.
Examples that come to mind, we used open source snowplow analytics because we had a data platform team that supported it and ran it full time. There was no cost with regards to the software, but certainly was with head-count to maintain, and evolve.
We used external newsletter services to inform customers about updates etc. in the product. We went with an external paid service because this didn't tie directly into a specific team and for 100 - 500 euro a month we got what probably would have cost 0.3 - 1.0 full time head count to keep a minimal service up and running (Which meant -0.3 to -1.0 headcount working on important things for the company).
Fast forward 20+ years later, that type of work is essentially the SAAS apps you see popping up. It's not a very capital intensive business to sustain so with a few thousand customers you could have a pretty healthy company and continue product development / grow your customer base.
Why do people go for these new SAAS apps ? I've seen a few reasons
1) Pricing is somehow better 2) Integration and or support is more personal so the customer (usually a business stakeholder) prefers it. 3) Some specific feature exists that is important to the customer i.e ease of deletion for GDPR requests 4) CTO / CIO / Techie prefers it.
Why I've seen people not go with the open source alternatives is the same oul reason. Focus. If you've less than 30 people at your org, unless one of those tools has a specific team covering that area - it will just split focus and end up in a suboptimal setup and create pain points in terms of support.
Examples that come to mind, we used open source snowplow analytics because we had a data platform team that supported it and ran it full time. There was no cost with regards to the software, but certainly was with head-count to maintain, and evolve.
We used external newsletter services to inform customers about updates etc. in the product. We went with an external paid service because this didn't tie directly into a specific team and for 100 - 500 euro a month we got what probably would have cost 0.3 - 1.0 full time head count to keep a minimal service up and running (Which meant -0.3 to -1.0 headcount working on important things for the company).