The Rise of BYOC: How It's Changing the SaaS Landscape for Good

Looking back at the past two decades, we know how SaaS became the go-to model for app deployment. From the on-premise installs to seamless scalability, there were multiple perks to it. But as businesses matured and cloud infrastructure became more accessible, SaaS models couldn’t help but show cracks. That’s where BYOC (Bring Your Own Cloud) came in.  
 For starters, BYOC is a modern-day deployment model that allows customers to run software in their own cloud environment. That means, you no longer require a vendor’s cloud support. More than a niche alternative, BYOC is challenging the status quo for SaaS delivery in an enterprise-first world. 
 In this blog, you’ll know what’s troubling traditional SaaS, why BYOC is gaining traction, and what this shift means for the future. Keep scrolling!  

What’s The Problem with Traditional SaaS? 

SaaS became the first choice primarily because it abstracted away the infrastructure. One signs up for a product, pays a monthly subscription, and gets the latest version of the software running on the vendor's cloud. Sounds great, right? Indeed, it was until a bunch of limitations came to light.  

• Lack of Control over Data and Infrastructure

When you use a SaaS product, all your data practically stays live in the vendor's cloud. Individually, this shouldn't bother you. However, for highly regulated industries like finance and healthcare, things are different. Not knowing where sensitive data resides, how it's protected, or who has access is a serious concern. Sure, your vendor can be GDPR or HIPAA-compliant. Still, there's no denying that outsourcing is a major risk for any business. For large enterprises, such a lack of control is definitely a deal-breaker.  

• Limited Customization and Vendor Lock-in

SaaS platforms were built for scalability. But when we talk about individual customer needs, they can't do much. Say you want a different logging system or to run certain compliance tools. Maybe route the traffic through the existing monitoring stack? Well, tough luck! SaaS vendors oversee runtime management, which means it's pre-decided what can be customized.  

• The Runaway Costs

Marketed as a cost-effective model, SaaS quickly became a favourite. And it's true, they can significantly lower business expenses, but only at a small scale. When the usage grows, it puts undue pressure on your bills. Let's face it! SaaS, no matter how good it is, follows a subscription-based model, and the charges change according to usage and features.  
 
 A 2022 industry study found that an average mid-sized company uses over 200 SaaS apps. However, over 30% of the subscriptions were either underused or never used. So, there's no way you can optimize a SaaS offering or tune up the infrastructure. As a result, your business will always be at the mercy of the pricing tier. Eventually, you end up compromising for what is "well enough” instead of what is "best" for your company.   

Flipping the Equation With BYOC 

BYOC is changing the dynamics of traditional SaaS models. Instead of using the vendor’s cloud, you can run an app in your own cloud. Azure, AWS, Google Cloud — take your pick. While the vendor will still have to provide the app (as it’s not a free-for-all but a shared responsibility model), you can control the runtime, the data, and the infrastructure.  So, BYOC is your new ticket to leverage the maximum benefits of SaaS, like managed components and automatic updates, without sacrificing autonomy. And there’s more than one reason why it matters for forward-thinking businesses today.  Your data remains with you: BYOC ensures sensitive or regulated data never leaves your infrastructure.  

• You have the power to choose how and where the data is stored and keep things compliant with standard regulations like GDPR, HIPAA, CCPA, or SOC2. In other words, you’re no longer dependent on a vendor’s hosting or security. 

 

• Full stack control and observability: With BYOC, you have the freedom to plug in your own monitoring stack (like Prometheus, Datadog, etc.) and utilize existing CI/CD pipelines. From CPU load autoscaling to injecting custom security policies, being in your own cloud gives you total control. This helps companies with mature DevOps practices when onboarding a new tool without spending anything extra. 

 

• Unmatched cost optimization: Running software in your own cloud means you can readily optimize infrastructure spending. Feel free to tune down the environments on weekends or reserve instances to save extra expenditure. So, unlike SaaS, where the only leverage is a subscription-based plan, BYOC allows seamless control over the use of resources.  

In short, BYOC gives businesses back the power, letting them decide how, where, and on what terms their software runs. For teams looking to scale smart, stay compliant, and cut wasteful spending, BYOC isn’t just a nice-to-have anymore; it’s becoming the new normal. Okay, BYOC is Cool! But Why Now?  The concept of BYOC isn't new. But what really changed the game is the cloud infrastructure ecosystem. The cloud ecosystem is more mature to support this shift than before. Besides, other significant factors, like cloud costs, are now a priority for most businesses.  Thanks to perpetual economic uncertainty, companies are tightening their budgets more than ever. This puts enormous pressure on CFOs and CTOs to optimize spending. With BYOC in the picture, they have a way to cut down SaaS costs without sacrificing convenience.   
Also, the global proliferation of privacy regulations is throwing stiff challenges at organizations. There's zero room for companies to treat compliance as an afterthought. BYOC allows smart architecturing of compliance right into your existing stack from the very beginning.   
 From startups to Fortune 500 companies, everyone is favouring BYOC for its unmatched data sovereignty. Leading vendors like Confluent and Astronomer are now offering BYOC as an option. Customers can choose to deploy software using their own cloud while still retaining full enterprise support. On the other hand, full-scale enterprise platforms like Databricks and Snowflake have also introduced "customer-managed" deployments by readily acknowledging hybrid control.  As predicted earlier in a study by Gartner, over 85% of enterprises will have adopted a cloud-first strategy by the end of 2025. The majority of them are believed to insist on models that give them full control over infrastructure and data. BYOC fits the frame fair and square. But wait! Isn’t BYOC Complex Than SaaS? It's true that signing up for BYOC is a bit harder than SaaS. But for businesses that already use SaaS, it's no overstretch. Besides, BYOC-friendly vendors provide Terraform modules and Helm charts, and Kubernetes operators can seamlessly streamline the deployment. Hybrid models are also an option where you start things as SaaS and then migrate to BYOC gradually.  

Is BYOC the Future? 

The simple answer would be yes! But it's not that simple. Undeniably, BYOC will go mainstream, but no one seems to know the right time for sure. This is probably because traditional SaaS models won't go away soon, but they will no longer be the default answer for every use case.  BYOC has already carved a niche for itself, and with infrastructure tools becoming easier, the barriers will soon come down. After all, BYOC offers the best of both worlds. On one hand, it offers the flexibility of owning the cloud environment. On the other hand, it speeds up modern software delivery. It's a foolproof model, not only for how companies operate today but also for where they're headed tomorrow.  At VGTS, we help businesses modernize their software delivery by building on both traditional SaaS and BYOC models. Whether you're developing from scratch or re-platforming, our design-first, KPI-driven approach ensures that your product is scalable, secure, and fully optimized for customer-owned clouds. From cloud-native app development and infrastructure automation to multi-cloud strategy, we take care of it so you can focus on what matters: building great software. BYOC is already shaping the future, but with VGTS, you're ready to lead it. Talk to one of our experts today to discover how we can help choose the right infrastructure for your application and build software that prepares your business for the future.