There are several B2B SaaS platforms out there, think Cloudsuite, Shopify and Shopware. But what are the actual differences between a SaaS platform and Magento? In this blog we cover the pros and cons of both, and which platform fits your B2B organisation best.
What is a SaaS platform?
SaaS stands for Software as a Service. You rent the software and pay for it monthly, sometimes topped up with a percentage of your revenue. The biggest limitation? Everything the platform offers is generic, in other words built for everyone. You can switch features on and off, but real customisation is not part of the deal.
If a SaaS platform has a hundred customers, it builds what most of them want. Fall outside that majority and you are waiting on a roadmap you do not control.
The advantages of a SaaS platform
Fast go-live. With a SaaS platform you can start quickly. The software is ready, the infrastructure is set up and you need little technical know-how. On average you are live within three to six months.
Low entry costs. The subscription costs are predictable and you do not need a large upfront investment. Especially when you are just starting out or want to validate a concept, that is a big plus.
Accessible. You do not need developers or a technical team to get going. Decide today, live tomorrow. For a starter or a smaller shop that is ideal.
The disadvantages of a SaaS platform
Limited customisation. Everything within a SaaS platform is generic. Want to set up a process the way your business needs it? Sooner or later you hit a wall. You depend on what the platform offers, and that is the same for everyone.
Vendor lock-in. With a SaaS platform you are tied in. Switch suppliers and you lose the environment you built up. The code is not yours, the data is not yours and you remain dependent on that one provider's ecosystem. With platforms like Cloudsuite or Sana Commerce that dependency runs even deeper than with Shopify.
Rising costs. The entry costs look low, but always look at the total cost of ownership (TCO) over three to five years. A Shopify Plus subscription quickly runs to €2,300 to €2,400 per month. And with many SaaS solutions you pay based on your revenue.
What is Magento with the elgentos B2B Suite?
Magento started life as a B2C sales channel and has been the largest e-commerce platform in the world for almost twenty years now. The platform is built for volume: lots of visitors, lots of orders, lots of products. And unlike a SaaS platform, you can adjust virtually everything, right down to the core of the system.
Magento has no B2B functionality of its own. elgentos developed its own B2B suite, so you can use Magento for B2B as well. Think company accounts, company pricing and customer approval.
The advantages of Magento with the elgentos B2B Suite
Full ownership. The code is yours, the data is yours. You are not dependent on an external party that can raise its rates or make decisions about your platform. Want to switch development partner? No problem. You simply take your Magento installation with you.
Solving complex B2B challenges. Magento with the elgentos B2B Suite is scalable from the ground up for complex B2B environments. Think performance optimisations at high volumes in orders (1000+ per minute), products (2M+) and/or customers (10k+), specific ordering processes or deep integrations with your ERP.
The disadvantages of Magento with the elgentos B2B Suite
Longer implementation. A new build Magento project takes nine to twelve months on average, certainly when migrating from an existing platform. There is legacy data involved, processes need rethinking and it is the moment to redesign the wider IT landscape, such as your ERP connection, too. That takes time, but it does deliver a solid foundation.
Technical expertise required. You need an experienced development partner who knows what they are doing. The freedom Magento offers is, in the wrong hands, also a risk: too many extensions, poor architectural choices or weak monitoring make an installation vulnerable. A thorough Discover & Build phase is therefore essential.
When do you choose a SaaS platform?
A SaaS platform is a good choice if you want to get to market fast, have not yet established fixed processes and your revenue is capped at around €2 to €5 million a year. If you want to validate a new concept, SaaS also offers a low barrier to start and see whether it works.
If you have no big growth ambitions and the current platform setup is sufficient, there is no reason to switch.
When do you choose Magento with the elgentos B2B Suite?
Magento is the logical choice the moment you run into the limits of your SaaS platform, or when you want to get ahead of those limits. Staff who want to set up processes differently, customers with specific requirements, growth ambitions the platform cannot keep up with. Those are the signals.
Are you between €5 and €10 million in revenue and looking to grow to €50 million or more? Then a SaaS platform is almost certainly a brake. With Magento you set the pace, the customisation and the direction. Not your supplier.
There is a matter of principle at play too: do you want business-critical software under your own control? Then Magento is a good option.
Curious which platform fits your business? We are happy to think along with you. Get in touch and we will put the options on the table together.
