Managed SaaS Vs. Unmanaged SaaS: Which Is Right For Your Business?

Managed SaaS vs. Unmanaged SaaS: Which is Right for Your Business?

Software as a Service (SaaS) is highly favored by businesses for its cost-effectiveness and flexibility. When choosing between managed and unmanaged SaaS, key factors should guide your decision. Explore the advantages and considerations of each option to determine the right fit for your business.

Managed SaaS

Managed SaaS refers to a service where the SaaS provider takes care of all the technical aspects, including maintenance, updates, security, and support. With managed SaaS, you can focus on your core business operations without worrying about the underlying infrastructure.

One of the main benefits of managed SaaS is the reduced burden on your IT team. The provider handles all the technical responsibilities, allowing your team to concentrate on strategic initiatives rather than troubleshooting software issues. This can lead to improved productivity and efficiency within your organization.

In addition, managed SaaS often offers robust customer support. If any issues or questions arise, you can rely on the provider's expertise and dedicated support team to address them promptly. This can save your business valuable time and resources, ensuring smooth operations.

Unmanaged SaaS

On the other hand, unmanaged SaaS provides you with more control and flexibility over the software. In this case, your business is responsible for managing and maintaining the SaaS application, including updates, security patches, and backups.

One advantage of unmanaged SaaS is the ability to customize the software according to your specific requirements. You have the freedom to tailor the application to match your business processes and integrate it with other systems or tools you use.

Another consideration with unmanaged SaaS is the potential cost savings. Since you are taking care of the technical aspects, you may be able to reduce the subscription fees compared to managed SaaS. However, it's important to factor in the additional IT resources required to handle the maintenance and support internally.

Choosing the Right Option

When deciding between managed and unmanaged SaaS, there are a few key factors to consider:

  • Technical Expertise: Evaluate your internal IT capabilities and determine if you have the necessary resources and skills to manage the SaaS application effectively.
  • Business Focus: Consider whether you want your IT team to concentrate on core business activities or if you prefer them to handle the technical aspects of the software.
  • Support Needs: Assess the level of support your business requires. If you prefer a dedicated support team and want to offload technical responsibilities, managed SaaS may be the better choice.
  • Customization: Determine if you need extensive customization and integration options. Unmanaged SaaS provides more flexibility in this regard.
  • Cost Considerations: Compare the pricing models of managed and unmanaged SaaS, factoring in both subscription fees and potential internal IT costs.

Ultimately, the decision between managed and unmanaged SaaS depends on your business specific needs and priorities. If your business lacks extensive IT resources or prefers to focus on core activities while receiving comprehensive support, managed SaaS might be the better choice. On the other hand, if you have the technical expertise and desire greater customization options, unmanaged SaaS can provide the flexibility you need.

It's important to thoroughly evaluate your requirements and consider the long-term implications before making a decision. You may also consider consulting with your IT team or seeking advice from industry experts to ensure you make an informed choice that aligns with your business goals.

Remember, the SaaS landscape is constantly evolving, and new options may emerge that offer a blend of managed and unmanaged features. Stay updated on the latest developments and regularly reassess your SaaS strategy to ensure it continues to meet your evolving needs.


Whether you opt for managed SaaS or unmanaged SaaS depends on factors such as technical expertise, business focus, support needs, customization requirements, and cost considerations. Carefully weigh these factors to determine the right approach for your business. By making an informed decision, you can leverage the power of SaaS effectively and drive your business forward.