Strategy: Managed Services and SaaS
Managed Services and SaaS (Software as a Service) are models in which the operation, maintenance, and further development of IT components are outsourced to external providers. The question is not "build or buy?" alone, but "which layers of our stack do we actually want to run ourselves?"
Every self-operated infrastructure is a strategic decision that ties up personnel, expertise, and attention.
Layers of Outsourcing
- SaaS: Full application as a service (CRM, HR, ERP). No technical operational overhead.
- PaaS (Platform as a Service): Managed runtime environment (App Engine, Heroku). No infrastructure responsibility.
- Managed Infrastructure: Managed cloud services (RDS, Managed Kubernetes). No OS patching.
- Self-Hosted: Full control and responsibility for all layers.
Decision Criteria
- Differentiation Value: Is this component a competitive advantage or generic infrastructure? Generic components get outsourced.
- Data Privacy and Sovereignty: Where does the data reside? GDPR, nFADP, and the Cloud Act must be considered.
- TCO: Managed services often have higher operating costs but lower personnel costs. The total picture is what counts.
- Vendor Lock-in: Managed services increase dependence on the provider. Exit strategies must be planned from the outset.
- Scaling Requirements: With unpredictable growth, managed services are often cheaper than self-hosted infrastructure.
Focus: Protect Core Competency
We outsource what distracts us from our core business. What differentiates us, we build and control ourselves.
FAQ
Isn't SaaS always more expensive than self-hosted?
No. The licence price is only part of the TCO. Personnel costs, downtime, security risks, and the opportunity cost of distraction must all be factored in.
How much lock-in is acceptable?
It depends on the criticality of the function. For generic HR software, lock-in is acceptable. For core business logic, exit options must be planned.
Reference Guide
- CNCF Cloud Native Landscape: Overview of managed vs. self-hosted. landscape.cncf.io
- The 17 Principles of Build vs. Buy: thoughtworks.com