Adoption of software as a service (SaaS) is accelerating and many organizations are realizing the transformative benefits. Therefore, choosing between SaaS and on-premises is a common problem nowadays in IT and is a decision that you will be faced with when deciding on a mobile workforce solution. Enterprise software vendors are realizing that deployment choice is a key consideration for prospects and often are offering both cloud and on-premises versions of their software suites. When faced with the choice of cloud-based or on-premises software deployments, many purchasing organizations continue to struggle with this decision. SaaS is a solution that is hosted on a cloud outwit your own offices, while on-premises, sometimes called perpetual, is a solution that is hosted completely on a server that is kept in your offices. There are benefits and drawbacks to both; whichever route your take depends on your individual situation.
Cost Factor
A SaaS solution will cost a fraction of what an on-premises solution would cost up-front, but there will be recurring annual charges. This means that it might be quicker and more cost effective to opt for the SaaS solution, but that the overall cost over the life of the subscription might end up being higher than with the alternative. An on-premises solution will cost more initially as you are paying for the software installation as well as licenses, and you might also need to purchase a suitable server. There may also be ongoing annual support charges.
A SaaS solution might make more financial sense if you only need a couple of users, while an on-premises solution might be better if you have a larger number of users. An on-premises solution will usually need an in-house IT department to manage it, which is more likely in a larger company; while a smaller company might not have the resource needed for this and would do better with a SaaS solution that is managed by the software provider.
So, if cloud is less than on-premise’s 22% maintenance, then cloud is the simple choice. But if cloud was more than the 22% maintenance fee, would on-premise a better deal?
Security
On-premises solutions can also be a safer option if you have high security needs: keeping your server on-site means that you don’t have to use an outside network at all and information can be encrypted to your own specifications. While most SaaS solutions will be secure, they may not be up to your standards.
Customisation
An on-premises solution is generally more customisable because vendors have built more comprehensive software development kits (SDKs) for these systems. Changes you might want to make to the solution to fit in with your company policies and processes will be easier with this option. As a result, on-premise buyers often customize more – and spend more. This includes work like integration with existing solutions. A negative of this is that you might have to wait for bug changes and upgrades as they might also need to be built to fit your specialised solution, whereas with SaaS you would receive them automatically.
Few years ago, there were relatively few options in the market allowing buyers to customize a SaaS system – so SaaS buyers typically spent less on customization. While customization costs for a SaaS system are still not quite at on-premise levels they are likely to continue to increase as new options become available.
Choosing the cloud
Finally, something that might sway your decision is if you have a need to access the solution from outside your office. If you’d like to be able to have access even if you’re on holiday, with a SaaS solution all you need is an internet connection of some description. If you’re more concerned about security, or would never have any need of accessing your solution while not on-site, an on-premises solution might be a better fit for your business.
Making the right choice
The most important thing to do when considering on-premises and SaaS solutions is to think about the needs of your organisation. What is the highest priority for you, and how will the solution work with your processes, meet your own requirements? Once you have an answer for this, making the best choice should be simple. The perfect cloud or on-premises solution, it’s always your choice.
Forrester Research reports that 50% of all organizations are interested in SaaS deployment. According to Gartner, even though only approximately 5% of the IT Service Management (ITSM) software market today has embraced SaaS, it is estimated that 50% of this industry will do so by 2015.
Reference: http://www.pulsion.co.uk/
