SaaS, Cloud, or On-Premises: How Do I Choose? Part 1

Sure, everyone knows that cloud solutions are better. But believe it or not, there is still a lot of confusion about exactly what “cloud” means. When deciding which type of software to go with for your organization, think of the three delivery methods that P2P automation solutions generally fall into:

• On-premises software solutions – Software that is licensed, installed, and maintained by your IT team. On-premises solutions require that you procure and maintain appropriate hardware.
• Cloud solutions – Traditional software that is licensed and implemented specifically by each client but is hosted in the cloud – either by the software vendor or a third party. Be very specific with your vendor when considering this option. They should include “hosted” in the description of what you are buying – and specify who is doing the hosting in the contract.
• Software as a Service (SaaS) solutions – True multi-tenant solutions that are built for internet delivery and designed for ease of use and low maintenance; the best providers will include best practices and full user support with ongoing training.

Evaluating the Options

These delivery methods and technologies all differ in terms of Total Cost of Ownership (TCO), ability to meet your specific business needs, implementation success, staffing requirements, business agility, and ongoing support and maintenance considerations. In the following table, we’ve listed the six most important areas to consider when evaluating software, and how each of the methods stack up.

We strongly suggest narrowing down to just one of these delivery methods before you begin evaluating individual vendors. This will help keep your research focused and reduce much of the risk of misunderstanding among your team. It will also reduce the time of your review process.

Also, make sure to evaluate the projected financial return of each vendor that makes it through your initial screening. Many companies have already established procedures/forms for calculating TCO. We highly recommend TCO analysis as the most uniform method to compare multiple, complex offerings. There are a lot of hidden costs in the traditional software model – assumptions about things that are already in place, like servers and data center infrastructure, that must be accounted for if you are to do a true comparison and an accurate analysis.

Online TCO tools and calculators can be used to help you understand the various criteria you should consider when building a model that works best for your organization. This might be an area where engaging with a consultant or professional services firm proves beneficial, as their experience working with various technologies and vendors can be helpful to your efforts.

A Word of Caution

SaaS options have become more widely used and accepted by organizations, and there have been a multitude of vendors jumping on the SaaS bandwagon. However, all SaaS solutions are not created equal, and there is currently a proliferation of imitation products that don’t provide the benefits of true SaaS.

DataServ is Different

DataServ is a true SaaS solution. From our inception, our goal was to create AP automation solutions that are:

1. pragmatic, sustainable, and affordable for real-world P2P automation challenges;
2. delivered as a service – guaranteeing your success; and
3. about 80% standard with best practices built in – then tailored to your business.

Our SaaS platform was built from scratch – not bolted together from acquisitions – with input from tens of thousands of users over the past 25 years.

Don’t just evaluate the technology; evaluate the results. Ready to see true SaaS in action? Contact us.