Email marketing software: In-house and self-hosted vs a Serviced model (Saas)
Email marketing software may be desktop-based or web-based. In this post we will cover the web-based models. And more specifically we will compare self-hosted solutions as opposed to serviced solutions (services).
Here are some basics to get you started. |
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In-house (self-hosted) |
Serviced model (Saas, Cloud) |
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Features | Features tend to converge in all modern solutions. As soon as a new feature appears every competitor will follow with the same or even better offer. But it still can be a differentiating factor. |
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Good In-house solutions especially open source ones are more expandable and scalable (customization, integration with the rest of company's software). However, software vendors knowing that their product will be installed on a variety of servers sometimes tend to compromise on some features. That's why you usually read about the Requirements. | Saas solutions also have some unique and powerful features because the provider has full control of the underlying technical infrastructure. A modern browser is usually what you need to have. |
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Cost of ownership & use | With an In-house solution you pay only once to acquire the software. And you don't have to pay recurring monthly or volume fees. You may have to pay for updates/upgrades but this is optional. This is clearly a more cost-effective solution. |
With Saas solutions you pay monthly subscription fees and/or volume-based fees. For frequent mailings and big mailing lists a Saas solution will be more expensive in the long run. For occasional, low-volume senders, a strictly pay as you go plan without a fixed fee is a cost effective choice. |
Capacity/Volume | If you use shared hosting, with an In-house solution you will be limited on the number of outgoing emails that you can send in a time frame. But today with the abundance of cheap VPS hosting plans, dedicated servers and mail relay services this limitation should not be a concern. | With Saas solutions you don't have this limitation. But the more you send the more you pay. And with some providers you pay even if you don't send at all. |
Deliverability | Rumors have it that with good Saas vendors you will have better deliverability. So there must be some truth in it. And there is. But there might be also "content filtering" and restrictions related to the "quality" of your mailing lists. So deliverability, although a critical factor may be an overstated argument. There are things one can do to achieve equally good deliverability when running his own software from his own server. Mail singing, Unique IPs, feedback loops are easily and broadly available. See below the "Hybrid model". | |
Technical involvement | Most vendors will offer you free installation and set-up. But there will be some configuration that you will still need to do yourself. Web-based solutions feel like a website. Some maintenance tasks (e.g. back-up) resemble quite a bit. | Minimal to none. The service provider sets-up and monitors everything for you. |
Data ownership and protection | Although this should not be a concern with reputable Saas providers, companies may have policies that dictate the use of an In-house solution where data access is limited to its owners. This issue has gained a lot of attention today due to the proliferation of cloud-based services and privacy concerns. | |
And the winner is,
None really. It depends on your needs and objectives.
At this point it is worth considering the hybrid model. |
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The Hybrid model
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Decision criteria |
Whether you evaluating a Saas or an In-house solution keep in mind the following:
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