Moving to the cloud? Comparing Cloud vs On-Premise?
More and more organizations are adopting to software as a service solutions (SaaS), but why? Why are some organizations moving to the cloud, while others prefer an on-premise solution? First of all, let us clarify what SaaS is. When adopting SaaS, the organization does not actually buy the software. It can be compared to a rental, which is subscription-based and therefore highly flexible. However, some people are either afraid of moving to the cloud or cannot see why they should.
Subscribe to our newsletter!
The perfect solution will not be the same for every company, which is why an analysis of the company’s need is appropriate before deciding on a solution. Moving to the cloud can be hard, see our video post about it. So cloud vs on-premise, we are giving our suggestions on why a SaaS model will be beneficial for some organizations:
1. Instantly provisioned
Traditionally most companies have had an on-premise solution, where adopting to a new software is often a time-consuming project in regards to both implementation and user adoption. With SaaS everything is already configured, the new software is ready to use once subscribed to. With the instant provisioning, time spent on installation and configuration is eliminated and users can get started right away.
2. Reduced costs
Some prefer to pay for a product or service upfront. However, we prefer to own less and rent more. Just think of how many things you can lease instead of buying. This provides the user with a great deal of flexibility and reduces the risks connected to huge investments. The same goes for software. One advantage for the small and medium sized businesses (SMBs) is that they can use software that otherwise would not be accessible to them due the high cost of licenses. Furthermore, costs for maintenance and implementation are heavily reduced, since no one in the organization has to make updates, or “do anything” in order to make things work. The SaaS provider simply owns the environment and therefore keeps everything updated.
With a SaaS solution it is easy to add or reduce the number of users. Perhaps one of the greatest benefits is that it can be integrated with other SaaS offerings. That means that each organization can put together their software solution, just like building blocks, to fit their needs, and to avoid paying for solutions which are no longer used. When additional services are subscribed to, no one needs to think about server capacity, since it is provided by the SaaS provider.
Upgrades are usually in the way of everything. Everything has to be updated and every employee has to update their own devices. Who has time for that? SaaS solutions automatically update, without anyone having to wait for each device to update. Time consumption is not the only thing reduced with regard to upgrades – so are costs. Upgrades and new releases often force organizations to buy the upgrade package or pay for specialized services to get the software update. With SaaS all of that is eliminated.
Usability is usually very high in SaaS offerings. Once they are subscribed to, they come with the best practices of the industry. Besides that, it is almost always possible to test out the SaaS before actually subscribing to it. That means that there are often some very talented designers behind it – because no one will subscribe to something that is hard to navigate.
An overview of the differences Cloud vs On-Premise solutions
IT resource dependent
Long wait for new versions
Added hardware costs
Large upfront investment
Little IT involvement
Frequently added new features
No hardware costs