Let’s talk about SaaS. It’s everywhere. If you run a small or midsize business, chances are good that you already use some SaaS tools — maybe a lot more than you think. According to Localogy, 89–90% of SMBs now use SaaS products to run their business (Localogy). An older Cisco report noted that over 70% of SMBs use cloud services in one form or another (Cisco).
Given those numbers, it might seem like SaaS is a no-brainer. But there’s a catch: SaaS can also lead to hidden costs, data lock-in, messy migrations, and churn. That’s why I think more small businesses should consider bringing your own database (BYODb) instead of buying full SaaS tools outright.
The SaaS trap: cost, lock-in, and data risk
1. Hidden ownership risks
Many SaaS tools store your data on their servers. When you leave or cancel, they may delete your data, make it hard to export, or limit what you can extract — sometimes forcing you to pay extra to get clean copies of your own information. The Smart SaaS Works blog warns that it’s common for SaaS vendors to purge customer data at contract end, creating a scramble for businesses trying to export everything quickly (SmartSaaS). Exporting only in limited formats (CSV only, or excluding metadata) or losing audit trails is a real risk (SmartSaaS).
2. High churn in SMB SaaS
If you’re selling SaaS to small businesses, you know churn is a monster. Jason Lemkin points out that 3% per month churn is typical for SMB SaaS — that adds up to a scary annual rate, and it doesn’t matter how great your product is (SaaStr). That churn can offset growth dramatically once product-market fit stabilizes. Lowered adoption, budget cuts, or just the inherent volatility of SMBs can drag users out faster than you expect.
3. SaaS sprawl and cost bloat
SMBs often stack too many SaaS tools. According to SMBGuide, SMBs use an average of 253 SaaS apps (SMB Guide). Some estimates suggest that offboarding from SaaS tools takes hours or more, adding labor costs and complexity. The phrase “shadow IT” is popping up in every discussion about SaaS proliferation. (SMB Guide).
That creates a bunch of headaches: duplicate data, licensing waste, confusion over where your data lives, and sometimes manual work to stitch everything together. SMBs say they want fewer tools and more consolidated systems. The Vcita survey cited in What SMBs Do and Don’t Need From Your SaaS Platform says 90% of SMB owners would prefer to combine tools into one tool, rather than manage many (Built In).
BYODb: What bringing your own database looks like
Putting your own database in charge means: you own the data, the storage, and the schema. Then you add a UI or business tool on top. The tool connects to your database rather than migrating or copying your data somewhere else. This is the basic idea behind tools like InfoLobby. You can think of it as “SaaS minus the storage”.
Here’s why that matters for SMBs:
- You don’t lose your data when you stop using the tool. No vendor purges, no export scramble, no missing metadata data. If the tool goes down or you quit, your data stays where you left it — in MySQL or whatever database you control.
- Cleaner migrations and exports. Since your data is already in your database, you can back it up, query it, migrate it, or connect it to another tool at any time — without asking permission.
- Lower risk of surprise costs. Tools that charge per user, per record, or per export can rack up unexpected bills. If you control your database and hosting, then upgrade only when you need to, you don’t get hit by usage-based pricing surprises.
- Fewer barriers to switching. If your data isn’t locked inside a SaaS tool, switching to a new front-end or tool becomes easier. There’s no big “exit cost” or painful export/import phase.
- Better long-term control for SMBs. Smaller businesses often don’t have dedicated IT staff to help with data migrations. When that business owner is also trying to migrate out of a SaaS tool and get their data back, things crash. BYODb lets them side-step a lot of that messy work.
Think about it this way: if you built a CRM on top of your MySQL database, and later decided you didn’t like the CRM interface, you could scrap it, build a new one, or hook the database into a different app — without touching the data inside. You own your customer list, your invoices, your schedule, and all the metadata — not just what the SaaS vendor lets you export.
When BYODb isn’t the perfect choice
I don’t mean to say BYODb is a silver bullet. There are tradeoffs. Here are a few times when traditional SaaS could be better:
- You don’t already have a database or hosting setup. If you’re starting from zero, spinning up MySQL, hosting it, and maintaining backups can be a non-trivial effort, especially if you don’t want to be your own DBA.
- You want hands-off infrastructure and auto-scaling. If you don’t want to manage performance, backups, or uptime, SaaS takes care of that side for you.
- Your priority is minimalist setup and fast onboarding. Many SaaS tools are designed to get you selling or organizing today, with little setup work required. A BYODb set-up may take more time or configuration.
- You don’t care about exporting or migrating data. If you’re fine storing your data in a tool indefinitely, and don’t plan to leave or migrate, then data portability isn’t a big concern.
It really comes down to how much you care about control, exit flexibility, and data sovereignty vs. ease of setup and hands-off operations.
A few stats to chew on
Here are some numbers that show why SMBs might want to think more carefully about SaaS and data portability:
| Metric | What it suggests |
|---|---|
| 89–90% of SMBs use SaaS (Localogy) | SaaS is nearly ubiquitous — but that means more businesses risk lock-in. |
| 70%+ of SMBs use cloud services (Cisco) | Cloud is standard, but “cloud” doesn’t always mean the same thing as self-hosted or locally-owned data. |
| Monthly churn of ~3% for SMB SaaS (SaaStr) | SMBs drop SaaS tools more often than we’d like. Once you lose a customer, regaining their trust (and data) is costly. |
| 90% of SMB tool users want to reduce the number of software products (Built In) | There’s strong desire for consolidation — but almost no product today makes it easy to stay while still owning your data. |
| Export difficulties and deletion risks from SaaS abandonment (SmartSaaS) | Getting your data out of SaaS platforms is often harder than going in — especially when metadata, audit logs, or history is involved. |
How SMBs can get started with a “bring your own database” mindset
If you’re an SMB owner or solopreneur and you’re curious about this BYODb approach, here are a few starting ideas:
- Check your current data flow. Do you already have a database (MySQL, Postgres, etc.)? Where does your customer data, project data, or invoice data live? If it’s already in a database, you might not need new SaaS tools at all — just a front-end interface.
- Ask about data export policies when choosing SaaS tools. If you plan to use a tool for more than a few months, ask: How easy is it to get the data out? What formats are supported? What happens when the subscription ends?
- Plan a backup strategy up front. If you’re using SaaS tools, make a habit of exporting your data regularly in open formats. Don’t wait until you cancel to realize the export is partial or incomplete.
- Pilot a small internal tool on top of your database. Try building a simple CRUD (Create-Read-Update-Delete) app or internal tracker that reads directly from your database. You don’t need to build a full product — just enough to see how controlling data ownership makes a difference.
- Document your migration path. Think ahead: if you ever leave a software tool, how would you migrate your data? Create a migration plan so it’s not a surprise when the time comes.
Final thought
Using SaaS tools is convenient, but convenience can cost you flexibility and control — especially for small businesses with limited margin, variable budgets, or changing product needs. By bringing your own database, SMBs can avoid surprise lock-ins, protect their data long term, and make it easier to change tools when they want to. It’s not always the easiest path, but it gives you choices and ownership — which, in the software world, can make a world of difference.
If you’d like, I can walk you through a sample setup using a MySQL database and a lightweight interface on top — no vendor lock-in, no surprises.