SaaS vs Managed Service Providers: What Do Enterprises Need?

The cloud has fundamentally altered business technology access and utilization. SaaS applications drive digital transformation, leaving enterprise IT teams to navigate how best to manage and secure them. Meanwhile, the reliance on managed service providers (MSPs) becomes uncertain as more budgets are siphoned off for SaaS. 

Resolve the internal debate about which is better for your business. Explore both solutions below to learn their core capabilities and use cases for a multi-location enterprise environment. 

What is Software-as-a-Service (SaaS)? 

The software-as-a-service (SaaS) delivery model changed how businesses find, use, and manage technology resources. Cloud computing is the backbone of SaaS, offering subscription-based applications that are easily deployable anywhere with an internet connection. 

These platforms are highly affordable and accessible because they are operated by a third-party provider responsible for all of the software’s functionality and upkeep. Enterprise-level SaaS sets itself apart from general B2B SaaS applications with more features like collaboration, customer support, customization, and analytics. 

What is a Managed Service Provider (MSP)?

A managed service provider is a third-party company that delivers specialized solutions based on the needs of the contracting business. Enterprises seek support from MSPs for IT services—providing ongoing management in areas like cybersecurity, networking, data centers, connectivity, etc. 

MSPs are attractive because they offer resources and skilled professionals that aren’t accessible or cost-effective for an internal enterprise IT team. Their emphasis on quality of service, superior expertise, customization, and affordability are regarded as key benefits. 

Comparing SaaS applications vs MSPs for enterprises

There are benefits and limitations to SaaS applications and managed IT services. Understand the core capabilities of each in the table below.

While both options have strengths, MSPs have a much more comprehensive solution set. Their services include managing SaaS applications, which removes the internal enterprise team's self-service burden.

Key enterprise considerations for SaaS

SaaS applications operate independently of one another. The average company uses 130 or more cloud applications, and the consumption is likely higher for multi-location enterprises.

Managing and securing a large SaaS inventory is an extensive undertaking for internal teams. Gartner predicts that 75 percent of companies will use the cloud as their underlying platform by 2026, so these challenges aren’t going away. 

Given SaaS’s ubiquity, shadow activities and SaaS sprawl are commonplace. This rogue adoption of SaaS apps outside senior staff’s knowledge further complicates security and data protection matters. The ability to then identify and securely maintain these platforms becomes a resource-draining feat. 

Consider the enterprise’s specific needs, budget, and resources across each office location. The more complex the IT infrastructure, the more important it is for a comprehensive approach to SaaS and enterprise connectivity. 

Why enterprises should consolidate SaaSs and MSPs 

Consolidating SaaS and MSP management cuts costs, improves efficiency, and enhances the experiences for clients and staff.

When an enterprise adopts a unified communication as a service (UCaaS) platform, seeking IT partners who support implementation is fundamental to reducing resources for in-house teams.

However, typical niche MSPs lack the resources or expertise to support implementation, upgrade legacy systems, or achieve communication technology lifecycle optimization, leaving companies to juggle several partners, rely on different tracking insights, and strain internal teams. 

Additionally, consolidating MSP and SaaS management makes it possible to see the vast array of data for billing, inventory, and contract information across all providers and geographies in a single web-based platform. 

Conclusion—Make enterprise SaaS and MSPs simple

SaaS offers a subscription-based, easily deployable model for business applications supported by cloud technology, emphasizing affordability and accessibility. On the other hand, MSPs provide tailored IT management solutions that extend beyond SaaS applications, delivering expertise and comprehensive service management that internal teams may find cost-prohibitive.

While SaaS allows for scalability and self-service, MSPs handle broader IT needs, offering customizable, holistic security and support across technologies. With enterprises relying more on numerous SaaS applications, managing such environments can overwhelm internal resources.

Gaining integrated SaaS and MSP oversight streamlines operations and bolsters security, ensuring enterprises gain a competitive edge in managing their IT. Empower your enterprise with SaaS and MSP’s scalability and cost-efficiency without the resources for researching, implementing, and managing enterprise connectivity applications or vendors.

Leverage the expertise and holistic management Advantage has to offer multi-location enterprises and organizations.

Contact the experts at Advantage to navigate enterprise SaaS as part of a holistic approach to global connectivity. 

Recommended articles (Helpful links)

• The Modern Enterprise’s IT Dilemma
• IT Budget Constraints: How Small Teams Cope
• Why You’re Overspending With Current IT Providers