- 31st Jan '23
- Sell SaaS
- 19 minutes read
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SHAREWhat is white label in SaaS?
The term "white label" has been used for years. It's not new and it's certainly not unique to the world of tech. But when you think about how many companies use this phrase, especially with cloud computing services like Salesforce, Google Apps, Office 365, Dropbox, and others, you might be wondering what exactly they mean by that. Is it just another way to say "we're selling our product under your name"? Or does it have something deeper behind it? To help answer these questions we'll take a look at some common examples of the word "white label."
Is Uber SaaS or PaaS?
In recent months, there have been several news articles discussing whether Uber should consider itself as a platform (PaaS) or an application service provider (SaaS). The debate started when CEO Travis Kalanick said during a conference call that Uber was "not a technology company," which caused quite a stir among developers who were looking forward to using his app. Since then he has clarified that he meant no disrespect toward those who make apps for him, but added that he doesn't see himself as a developer either. And while the discussion continues, the truth remains that all three models exist on their own terms.
If you read through the article linked above, you will find that Kalanick describes each model very well. He calls them "platforms," "services," and "apps," respectively. So if you use any one of them regularly, you can probably tell where your favorite ride share app falls into the spectrum. However, there's still some confusion because even though Uber is a great example of a PaaS and Lyft is a great example of an SaaS, neither company considers themselves a PaaS nor an SaaS.
That leaves us with the question: do platforms fall somewhere between applications and providers? If so, where does Uber fit in? There will always be gray areas when talking about terminology, but here's what I believe based on my experience working with dozens of different brands across multiple industries:
Is Netflix a PaaS or SaaS?
Netflix offers its streaming content as both a subscription service and a rental program. While people subscribe to Netflix's paid plan, they also rent DVDs from Walmart stores without paying anything extra. This means that Netflix can be described as offering two separate packages of service: a PaaS and an SaaS.
However, according to CEO Reed Hastings, Netflix isn't really a PaaS or SaaS. Instead, he says that the company is a delivery mechanism that connects customers to third party content creators, much like Amazon Prime. That makes sense since Netflix is part of a larger ecosystem of entertainment. As such, it seems like the only real difference between Netflix and other PaaS offerings would be the type of content available.
Create your own software
What is PaaS example?
When you hear the words "Google App Engine," "Microsoft Azure," or "Amazon Web Services," it's easy to assume that you're dealing with a PaaS. In fact, most businesses that offer web hosting solutions fall into this category. Because of the wide variety of options out there, it's hard to pinpoint exactly what the differences are between each solution. Let me try to explain them briefly below, starting with Microsoft Azure.
Azure provides users with access to storage space, database management tools, web servers, virtual machines, and other resources typically reserved for large enterprises. They do this by giving you control over your entire infrastructure instead of having to manage individual components yourself. You don't need to worry about managing servers, scaling capacity, or purchasing additional licenses or hardware. As long as you stay within the limits set by Azure, you pay per month regardless of usage.
It sounds pretty similar to AWS, right? Well, yes and no. A lot of people mistakenly conflate cloud services like Microsoft Azure and Amazon Web Service into one big bucket called "cloud." These services aren't necessarily the same thing, although they often work together seamlessly. For example, Azure runs on top of AWS' infrastructure, allowing you to access data stored on AWS' server farms.
What's important to note is that while both services allow you to host websites and store files online, Azure focuses primarily on providing cloud-based compute capabilities whereas AWS specializes in storing information. Both offer plenty of value to small businesses, however. And unlike traditional desktop operating systems, you can upgrade your account whenever you want without needing to contact support staff first. Just sign up for an annual contract and start downloading updates automatically.
There are tons of ways to get involved with cloud computing, including white labeling existing solutions and building custom ones. One benefit of doing so is that you can avoid costly licensing fees and maintenance contracts. Another advantage is that you won't ever run out of space to grow your business! Check out our guide to getting started with Azure to learn everything you need to know before making the leap.
Is Instagram SaaS or PaaS?
Instagram is arguably the biggest social media network around today, reaching almost 1 billion active monthly users worldwide. Its popularity extends far beyond Facebook and Twitter, too. People check it every day to keep track of friends, family members, celebrities, and influencers. Most importantly, it allows anyone to post photos and videos directly onto their feeds.
So why did Facebook buy Instagram back in 2012? Wasn't it already profitable? Not exactly. After spending $1 billion buying the startup, Facebook saw a huge influx of traffic that made the site less appealing than it had previously been. With billions of dollars pouring into the social network, investors began asking Zuckerberg to sell again. Eventually, Facebook bought Instagram back for $1 billion once more.
As soon as Facebook acquired Instagram, everyone wondered if it could become profitable down the road. To some extent, that happened. According to Forbes, Facebook now earns 40 percent of its revenue from advertising. That number dropped significantly after acquiring Instagram, but it's still higher than the 25 percent figure reported prior to the deal.
While Facebook sells ads, it doesn't actually provide any sort of content creation platform. Users must upload pictures, video clips, and short stories manually. That's why Instagram became known as a photo sharing tool rather than a full fledged social networking giant. Still, it's difficult to deny the massive popularity of the website. And even though it's not technically considered a PaaS, it definitely functions as one.
What is your opinion on the relationship between SaaS and PaaS? Do you prefer one over the other? Share your thoughts in the comments section below!
In the world of modern web applications and services, there's no shortage of options. Whether you want an online store that sells t-shirts for your favorite band, a dashboard to manage all of your company emails, or an app to help you find a new job, chances are you can find it on some sort of SaaS (Software as a Service) website.
While this type of application may be familiar to people who have used them before, what exactly does "white label" mean when applied to a SaaS solution? While many developers will create their own SaaS solutions from scratch, it’s also possible to purchase one directly from a third party developer, which means they may provide support, maintenance, updates, etc., but not necessarily branding or design elements like logos, color schemes, and other aesthetic aspects. These companies often call themselves “white label providers” because they sell their product under another name — much like how Coca Cola bottles use different labels depending on where you buy them.
But what exactly does “white label” mean when applied to SaaS? What does it take to become a certified provider of these types of apps? And do you need to know anything about coding at all just so you could offer this kind of service? Let’s look into each part of that question in turn.
What makes a SaaS platform?
Before we dive too deep into the technical side of things here, let’s talk about why someone would consider using a SaaS service over something else instead. There are plenty of reasons out there for doing so, including cost savings, easy setup, integration with existing systems, and even ease of use. But perhaps most importantly, you get access to thousands upon thousands of users without needing to spend any money up front. That alone could make a huge difference if you run a small business, especially given the fact that many businesses can only afford to pay monthly fees.
For example, the email marketing service Active Campaign has been around since 1999, offering both free plans and paid tiers starting at $20 per month. It doesn't include any branding or design elements, but it offers everything you'd expect from a full-featured SME email marketing system. If you're looking for a way to send emails quickly, easily, and inexpensively, Active Campaign is definitely worth checking out. However, unless you already have an audience built through social media sites like Twitter, Facebook, Instagram, YouTube, et cetera, you'll likely still need to invest time and resources building those relationships yourself first.
So while you might be able to save quite a bit by going straight to the source, you won't see results right away. The same goes for many white label solutions available today. Before you can start making money selling them, you usually need to set up shop somewhere first. This includes setting up accounts with payment processors, advertising networks, tracking tools, and more. And the truth is, many of us don’t have the time to devote to learning about every single piece of technology involved in running our own SaaS business. So having a partner that specializes in helping others jumpstart their campaigns gives us a lot more flexibility than simply purchasing a ready-made package outright.
Are cloud platforms SaaS?
If you've ever heard the term “cloud computing” thrown around, chances are you probably think of Amazon Web Services (AWS). After all, AWS was once known as Amazon Elastic Compute Cloud, and its headquarters were located next door to Google's offices, so it seems natural that everyone thinks of the two together now.
However, unlike traditional web hosting packages sold by large corporations, cloud-based offerings tend to come in smaller chunks of space that can be rented individually rather than purchased en masse. In addition, cloud-computing companies typically charge customers based on usage, so you never really end up owning the physical servers yourself. Instead, you rent them on a subscription basis. As such, the idea behind cloud-based services isn't the same as SaaS, despite some similarities.
As mentioned above, SaaS stands for Software as a Service, and while cloud-based services aren't technically SaaS anymore, you can certainly argue that they fall within the general category. They operate similarly, allowing you to scale down to meet demand whenever you choose. You can also customize the look and feel of your interface however you please, so long as you keep the core functionality intact.
That said, you should be aware that not all cloud-based services work in the exact manner described above. Many rely on the concept of virtualization, meaning multiple instances of operating systems reside on separate machines in order to handle load balancing and redundancy. Others utilize specialized hardware designed specifically for high-performance tasks. Still others allow you to access data via proprietary interfaces instead of relying solely on APIs provided by outside vendors. All of these factors go toward determining whether a particular cloud-based service falls squarely under the umbrella of SaaS or not.
Is a platform as a service PaaS?
Platform as a Service (PaaS), meanwhile, refers to a specific type of cloud-based service. It works somewhat differently from SaaS, but the basic premise remains pretty similar. Platform as a Service allows you to develop custom code against prewritten templates stored on remote servers. For instance, if you wanted to write a chatbot that connects to Slack channels automatically, you wouldn't have to learn the intricacies of NodeJS development or figure out how to integrate Twilio’s API manually. Instead, you could focus entirely on writing the bot itself. You could then upload your finished project to a server managed by a PaaS vendor, who would host everything necessary to connect your program to Slack, Discord, Telegram, or whatever other messaging network you chose to use.
You could theoretically do the same thing with a SaaS service. For example, you could install WordPress onto a domain hosted by GoDaddy, add plugins written by Automattic, Inc. to integrate seamlessly with the rest of your site, and leave all the heavy lifting to a trusted third party. Although the process would require slightly less effort than developing a fully functional CMS from scratch, it would still involve a fair amount of tinkering on your part.
The main advantage of PaaS vs. SaaS services is that you don’t need to worry about installing, configuring, maintaining, backing up, scaling, and securing your own infrastructure. Your entire task becomes focused on actually creating useful programs that solve problems and generate revenue. Of course, this comes at a price. A typical PaaS solution costs anywhere between $100 - $5,000 per year. Some will ask for significantly higher rates, but most of the major players will give you discounts for longer contracts, larger user counts, and other perks.
Is Airbnb a PAAS or SaaS?
Now that we have a better understanding of what a white label solution entails, we can move forward and examine the case of Airbnb versus Uber. Both of these companies started out as startups that found success by taking advantage of the sharing economy model. When Uber launched back in 2009, it helped ordinary drivers earn extra income by renting out their cars to passengers willing to shell out cash. Then came Airbnb, which allowed anyone to list their house or apartment for short-term rentals.
Both of these companies went on to achieve enormous levels of popularity, eventually growing beyond expectations and turning into billion dollar enterprises. Today, they remain among the largest tech firms in the world. Is either company truly considered an SaaS company though, or did they grow into something completely different? To answer that question, we must delve deeper into the differences between a SaaS solution and a PaaS solution.
Airbnb runs as a PaaS, providing hosts with a wide range of features including listings management, analytics, and automated payments. Meanwhile, Uber operates as a SaaS, focusing exclusively on the customer experience. Their websites function in almost identical ways, but the underlying technologies are very different. The former relies heavily on JavaScript frameworks like React Native, Vuejs, Angular, and others. The latter uses native mobile apps powered by Apple iOS and Android SDKs.
To summarize, while Airbnb began as a PaaS in terms of architecture, it became a SaaS due to its focus on the user experience. At the same time, Uber didn't begin life as a SaaS, but grew into one after realizing that people preferred paying upfront for convenience over paying later for quality.
Whether you decide to launch your own SaaS enterprise or join forces with a white label provider, it pays to understand the basics of what distinguishes one from the other. Without knowing the ins and outs of any individual product, you risk wasting precious time and energy trying to implement ideas that won't work anyway.
When we think about SaaS (Software as a Service), many people immediately imagine cloud computing. While that's certainly one aspect of SaaS, it isn't necessarily the most important or interesting part of the model. For example, while I'm writing this article on my laptop, I can use any number of online tools without ever having to worry about installing anything -- just log into them with my credentials. That makes me feel like I have access to all of these services from anywhere at anytime. That's why companies who offer SaaS tend to market themselves as "cloud" solutions instead of by name.
But what if you could take advantage of all those features of cloud computing without actually using a cloud solution yourself? You might not even need your own server! What would happen then? Well, when you do that kind of thing, you're creating something called white label SaaS. It sounds confusing, so let's break it down step by step.
What is seaport OpenSea?
Before we dive deeper into our discussion, I'd like to introduce you to Seaport OpenSea. This company has built an open source toolkit intended for developers looking to create their own white labeled SaaS product. The project was originally started by two former GoDaddy employees named Adam Friesen and Sam Guckian back in 2013. Since then they've grown the development team considerably and now claim over 1 million users across 100 different countries around the globe.
Seaport OpenSea offers its community of creators everything from libraries and plugins to documentation and tutorials. They also provide a marketplace where customers can purchase licenses for their creations. To date, there are nearly 200 paid options available. Most of which focus on email marketing automation. However, there are some SaaS offerings available too, such as Webinar Maker and Social Media Manager.
The cool thing here is that anyone can sign up to become a developer on Seaport Open Sea and start building their own SaaS offering. But because this is an open source project, it doesn't cost anything extra. All of the code behind these applications comes directly from Seaport Open Sea itself. The only thing you'll pay for is the time spent developing the application itself. And even that will come out of your pocket since you'll likely want to hire someone else to help you develop it.
What is a SaaS enabled marketplace?
So far we've talked about how a single developer can make his/her own SaaS app using the Seaport Open Source Code. Now let's talk about how that works in practice. In fact, there's already a thriving ecosystem of businesses selling white label SaaS apps through the Seaport Open Sea marketplace. These providers range from small startups to large corporations. Some of these companies include ActiveCampaign, DashThis, Weblium, Shift4Shop, and others.
There are several reasons why a startup may choose to sell their service through a third party rather than going it alone. First, it allows them to leverage expertise other companies bring to the table. Second, it gives them access to larger markets. Thirdly, it means they don't have to spend money hiring a programmer to write their own custom SaaS system. Finally, it ensures that their customer base won't end up confused or disappointed when they find out that the company no longer exists.
These same benefits apply to larger organizations too. If you run a website that sells widgets, you probably don't have the resources necessary to launch a new widget sales channel. So, you turn to a provider to handle everything for you. Not only does this allow you to avoid the risk associated with starting from scratch, it lets you reach a wider audience. In addition, if you decide later that you want to go it alone after all, you still retain ownership of your existing customer database. Which means you aren't giving away your intellectual property.
Can a platform be a SaaS?
One question that often arises when discussing the topic of SaaS is whether platforms can really be considered SaaS. Of course, there are plenty of tools that fall under the category of Platform as a Service (PaaS). Examples include things like Heroku, AWS Lambda, and Google App Engine. Those services are very similar to traditional hosting plans offered by web hosting companies. They give you access to virtual servers and infrastructure, allowing you to deploy and manage applications.
However, there are some subtle differences. One big distinction is that PaaS usually includes support for multiple languages. Meaning that you get complete control over every aspect of your app including design, coding, deployment, testing, etc. There's also typically less overhead involved compared to running your own private VPS. On top of that, PaaS tends to be cheaper overall. Because of all these factors, PaaS is generally seen as being better suited for smaller teams that require flexibility in terms of language choice and pricing tiers. Whereas SaaS is more suitable for enterprise level deployments.
It's worth noting that both types of service exist side by side within the broader umbrella of Cloud Computing. And sometimes that confusion leads to companies trying to pass off their hosted services as SaaS. As a result, it becomes harder to tell the difference between true SaaS and PaaS. My recommendation is that unless you see a specific reason why a particular piece of software should be classified differently, treat it as either.
What is the difference between a platform and a SaaS?
If you asked ten random people what constitutes SaaS, odds are nine out of ten of them would say it's software delivered via a subscription plan. And that's largely accurate. Yet, technically speaking, that definition is pretty broad. After all, almost any type of service can be broken down into monthly subscriptions. Even physical goods sold on Amazon Prime.
To narrow things down further, we must look beyond price to understand what separates SaaS from a regular old website or mobile app. A few key points include:
1) Accessibility - Anytime I try to download a Windows 10 ISO file from Microsoft's site, I am met with an error message stating that the file is invalid. I know this because I tried downloading it myself before asking the question. Similarly, I cannot install Steam games on my Macbook Pro simply because Apple hasn't released official drivers yet.
2) Control - When you subscribe to a SaaS package, you gain full administrative rights. In contrast, when you buy a PC or phone outright, you never have any ability to change settings or add additional hardware.
3) Upgradeability - With a typical desktop operating system, upgrades are always free. But once you upgrade the core OS, you're locked in to whatever version came along with it. Conversely, when you subscribe to a SaaS package, you keep getting bug fixes and security updates until you cancel your account.
In short, SaaS provides consumers with all three components of a digital lifestyle. Accessibility, control, and upgradeability.
So, next time you hear someone talking about "white labeling" SaaS you'll know exactly what he's referring to. And hopefully you'll learn a little bit about the world of cloud computing too.
White label software