We wanted to bring attention to a very well constructed Business Solutions magazine article that presented a thorough side-by-side comparison of the Software as a Service (SaaS) and on-premises deployment models. While the example they use pertains to businesses seeking to support large field service organizations, we found the article’s main points to be spot on. Their view that SaaS leads to lower operating costs, a more focused internal IT department and overall enhanced responsiveness of the organization reflects what we have also seen through the years. Below are five areas Business Solutions cite SaaS as holding an advantage in:
Lower total cost of ownership – If you don’t want the burden of installing or integrating hardware or software or managing system maintenance, then SaaS is the answer for you, especially if your company has a small IT staff or is interested in lowering operational costs. The subscription-based model that SaaS vendors typically employ requires a significantly smaller initial investment and while it does contain ongoing monthly fees, they are frequently scalable based on usage, so you only pay for how much you use the system once the initialization has taken place. The on-premises deployment model requires a larger initial investment, as well as additional investment in the form of hardware costs, maintenance fees, IT labor and system upgrades.
Easier customizations and integrations – As Business Solutions so succinctly puts it, “because SaaS vendors provide services in addition to their software, and because of SaaS’s flexible application programming interface (API) economy, cloud-based infrastructure enables simpler integration between field service apps and other enterprise software like ERP and CRM systems.”
Less burden on your IT department – Any organization considering an on-premises solution must decide if it is committed to the ongoing investment in staff. With on-premises software IT staff must be equipped to handle installation, configuration, support and management of the software. Vendors offering cloud-based solutions handle the initialization and offer real-time support and automatic upgrades, so it is significantly less taxing on a client’s IT department and a company may be able to achieve savings through a scaled-back investment in IT.
Enhanced security – We have blogged about why the cloud is more secure than it generally gets credit for, and the Business Solutions piece takes things a step further by stating that unless you have “an IT department large enough to devote its time, effort, and resources to protecting the company’s data, it may make sense to host with a SaaS provider.” As the piece accurately concludes, “SaaS solutions host data off-site and apply security policies and continually track emerging threats to the information. In the case of equipment failure or a network crash…..hosting data off-site will increase the chances of data recovery.”
Faster deployment – It takes significantly less time for a SaaS solution to get up and running than it does for an internal IT staff to install, configure and initialize an on-premises solution.
If you have any questions or would like further information about SaaS vs. on-premises solutions, particularly as it relates to purchase to pay or quote to cash automation, contact us at info@DataServ.com.