Are you still deciding what is better for your enterprise between on-premises and SaaS? Your choice can make or break your standing in the competitive market. We can’t help you with a mantra to choose from, but we can do it to help you make an informed choice.
With the current advancements, there is a dire need for organizations to implement an IT strategy. To help you with more insights, on-premises technology is a locally installed and managed software. This term is mostly used by the conglomerates. It seems like a great idea at first to use a locally installed software, unless you start comparing and find out about the benefits of SaaS.
What is SaaS?
Remember when times were easier and companies were either hosting their data in-house or had a provider to do that for them? Just like everything, even data hosting evolved and cloud computing took over. SaaS enables organizations to host both, data and web. The SaaS ecosystems emerged in the 21st century along with Salesforce and NetSuite. As for now, a majority of enterprises rely on SaaS as their preferred software delivery method. With the dawn of SaaS technology, efficiency and customer satisfaction become easier to achieve. But, is SaaS really as efficient as it is claimed? Let’s quantify that. SaaS is hosted and maintained by a 3rd party provider, which provides your enterprise the freedom of handling everything yourself. This is where you save on IT infrastructure and human resources, diverting those resources to grow your business.
What is On-premises Technology?
The on-premises technology is the software and technology that is available in the physical space of an enterprise. This is mostly in the organization’s data center rather than running remotely on a hosted server or cloud computing. By opting out for installing and running the company software on hardware located in the premises of the company helps the IT staff to physically access the data and control the configuration, and management along with the security of the computing infrastructure and data.
To understand the contrast between SaaS and On-premises solution, let’s directly compare them on industry parameters
The SaaS single tenant implementation is lower than on-premises solutions. But as for multi-tenant SaaS implementation, it may be higher than on-premises hosting. it provides you a flexible pricing model with upgrades. SaaS also minimizes the costs related to internal resources. On the contrary, the operations cost of on-premises solutions is higher. Your business will need it’s own IT infrastructure and human resources. The in-house solutions will cost you more along with higher maintenance cost.
The SaaS solutions consume less time for implementation compared to in-house solutions. SaaS solutions can make the most of the existing r