Should I develop this idea as a SaaS app or standalone software?

Without going into a ton of detail, I have an idea for an application that logs PHP errors from a website. However, I'm torn between developing this as a SaaS subscription, or a standalone package which users can buy at a one-time cost.

Option 1: I develop it as a SaaS, I have to pay for network/storage of all incoming requests from websites attached to this service. Which, could be limited to tiers, but still requires me to maintain and pay for that architecture.

Option 2: I develop it as a standalone package which users can install on their own sites and applications. They tie it to a table in their database, and all of their errors are logged locally. I take no responsibility for storage or networking, but it's a one-time fixed cost. Additionally, if someone buys it once they could use it on any number of sites without my knowledge.

Option 1 is obviously the better choice in terms of monetization, but I also like removing me from the responsibility of handling incoming logs through Option 2 and leaving it to the users themselves.

What do you think?

Try offering both and see which one is more popular.

Or first conduct a survey of about 40-100 PHP developers and ask what would they prefer.

Cheap SAAS? There are existing solutions which offer free tiers but the first paid plan is a steep climb.
Self hosted solutions are pain to maintain. It can only act as good marketing. Its the constant ongoing maintenance & support people are actually paying for.

I myself want a basic log viewing and aggregating system but don't want to pay a lot. Its just about SSH'ing into the server and tailing the file for me. But being able to see live streams of logs in a UI can be cool + alerts functionality.

But before any of that, how are you going to collect logs and send them to your server?

If your customer is developers or hosting companies, SaaS would make sense.