Why building a self-hosted SaaS is harder
getlago.com
getlago.com
You should tell me how you rename database columns in AWS without breaking anything.
I’m not really sure what the point of this article is, it just seems to promote the company’s migration method with a misleading title. But I highly disagree that self-hosted is harder. With many self-hosted BaaS systems I’d argue it’s easier.
This method doesn’t work as well with distributed DBs, but to be fair they’re a terrible idea for most use cases.
Intermediate updatable views is one way.
I thought that was a RDBMS primitive.
On-Prem, the operations team can announce: Hey, System XYZ won't be available Saturday Morning in two weeks due to an upgrade. Then you shutdown the entire thing, change the column name and start it back up on a new version. I've had a few chats with system responsible people at customers even for very large customer support organizations - to them, a well coordinated and controlled downtime is something they can just work around and it might even be preferable over a more complex, less controlled maintenance without downtime.
In our own hosting, the more complex migration procedure would be easier to coordinate and execute though, than coordinating such a downtime with a lot of customers.
It is generally the case that preventative maintenance is orders of magnitude cheaper than break fix maintenance. If you have the luxury of bringing entire systems down routinely, you are much more likely to engage in the first kind.
I don't always have a choice, but if I do, I will always choose the vendor which will give me an on-premise product. And I guarantee you the companies that do will outlast the SaaS-only ones.
why? those are the clients that bother me the least and just pay every year without whining. I have 20 year old SaaS running in a rack with 10-20 year old servers. I wish all my clients ran like that as it's stable, no modern blergh stacks; it works & is fast.
We deal with industrial customers in Germany. And they always ask about on premise setups. We can do multi tenant SAAS, we can do dedicated hosting (more expensive). But we won't really entertain on premise setups of our produce unless we are talking seven figure deals. That stuff just has to be expensive because it usually means hard to access (firewalled systems without internet access), obsolete (we installed a thingy in 1995!), and requiring lots of hand holding, integration overhead, and all the rest. It's doable technically but we're not going to be doing that for free and it's going to put an enormous burden on my team if we do it properly. That's the point of seven figure deals. It needs to cover all that cost, inconvenience, pain, etc. And it needs to be a sufficiently scary high number that customers will think twice about maybe not going for dedicated hosting instead.
The German industry is being dragged kicking and screaming into this century of course. But regardless, we deal with a lot of customers in various stages of completing their migration to SAP cloud, and otherwise modernizing their setups. They worry about compliance, certifications, etc. Those are the real obstacles.
Infrastructure hosting as a service is also becoming a thing of course. Self hosted no longer means having guys installing AC in your basement and mounting a lot of servers. You can get some nice managed data centers with decent support and all the rest. It's not that different from using cloud infrastructure. Spinning up a new machine might take a bit longer but there are tools and APIs for that. But otherwise it's not that different from a devops perspective. If you orchestrate that stuff properly, there's very little difference.
Paying a premium for public cloud is a thing that companies should question. But they probably shouldn't be buying, installing and managing a lot of hardware. Or be hiring a lot of expensive staff doing that kind of stuff.
This is far from universally true.
SAAS for a lot of businesses is about lack of large upfront costs and lock-in.
The theoretic appeal is that instead of negotiating a large (possibly multi-million dollar) deal upfront, you instead pay a monthly or annual rate which includes an agreed upon level of ongoing support and you have the option of terminating the deal at your leisure. This incentivizes the service provider to offer a good enough level of service to try prevent you from dropping them.
In practice it can be more complicated depending on the particular product, for example migrating data between systems of different vendors can be very difficult or possibly even practically impossible, allowing the vendor to effectively lock you in and get away with sub-standard service.
Vendors who offer to manage and handle the hosting of their SAAS products for customers are just providing a feature to make their product more appealing to people looking for that.
I don't see why it's that hard these days. is it really so unreliable to go on something like Hetzner, install Ubuntu, Docker Swarm, and a clustered database like TiDB or CockroachDB both of which support functionality to make it easy to schedule backups to something like s3, or other hosts, or ftp, etc.
Even if you have updates, do it one machine at a time, swarm by default is load balancing your traffic, and you're using a clustered DB so it shouldn't be a problem.
and of course, put it all behind cloud flare, because why not.
I get how like in 2012 it was annoying. you had to use Postgres, which is a great database, but then you had to deal with backups and k8s and swarm barely existed, so you had to roll your own nginx or apache config for load balancing and was annoying. in 2025 seems crazy to not do it. going to the article, obviously you should as a sass support it, if my premise is accepted =)
and before someone talks about security - it's also very easy to set up service accounts or iam improperly and leave your rds, firebase, whatever thing totally open or on defaults...
You want to, you don't need to.
> This makes shipping updates harder because customer instances are a black box.
Containers for software updates.
> Even low-risk fixes like renaming a database column can break a billing run when a job is currently using that data.
Why is anyone renaming database columns in the year 2025? Have we not had five fucking decades of experience that this is a terrible thing to do? If your application's internals are exposed to the customer, you have messed up. If you have an API or user interface, it has to be backwards-compatible. These are table stakes.
> You can’t extend/integrate cloud software beyond what APIs allow you to do.
True, API integration is by definition vendor lock-in. But that's what people like these days. Nobody wants to spend the time to develop an interoperable standard when they can just churn out an API and force somebody else to make it work with what they have.
> If a cloud vendor has a security issue, you now have a security issue.
So vet the cloud provider for its security practices. Enterprises do this as a matter of course. The decent (read: expensive) providers have better security than you'll implement.
> If a vendor fails/gets sunset by an acquirer, their software disappears.
True enough (again, API integration is vendor lock-in), so make sure you use vendors in a way that's highly cohesive and loosely coupled so they are easier to replace. In general, part of your maintenance budget (80% of the cost of software is maintenance) is in upgrading or replacing EOL software. This is more true of self-hosted software than cloud-hosted.
Building a self-hosted thing isn't significantly different than a cloud-hosted thing. Remember when we didn't have a cloud? Everything was self-hosted. What's hard is just software engineering, because new people aren't learning the lessons old people already learned. It's like building construction, with no zoning code, no manual, no 5-year apprenticeship. It's hard to learn; it's not hard to practice once you've learned.
And so it requires an investment in time, which maybe 1year+, to learn a wider set of skills which many don't want to do