SaaS solution over On-Premise

Why To Choose SaaS Solution Over On-Premise

by Amit Jnagal, on April 20, 2017 11:45:00 AM PDT

SaaS solution is a fast-growing sector in Cloud computing. A few years back because of the high cost of cloud storage and bandwidth, the choices were very clear and On-Premise solutions were a clear winner. But with the new technologies coming into play, Cloud computing and storage costs have lowered in recent years hence SaaS solution is gaining importance. In this article, we will look at the advantages of using the SaaS solution for those organizations where there are no privacy and security concerns on the information.


For any On-Premise solution, an organization has to spend a lot of money for the purchase and support of hardware, software, storage, etc. Which means a lot of capital investment to get even a small feature/product out. With the SaaS solution pay-as-you-go model, there is no initial investment that is required. Hence a good option for any organization where the service is used to generate revenue.


For a SaaS platform, the architecture is already thought about and the services are ready to use. There is no need for upfront architecture work. The only exception would be how to consume the services. For On-premise, a lot of time and money gets spent on defining the architecture, which can even impact the time to market the product.


On-Premise solution requires a lot of IT involvement. This may include Architecture work, Development Efforts, Testing, Infrastructure work, etc. SaaS solution's biggest advantage is no or very little IT involvement.


With the SaaS solution pay-as-you-go model, scalability is typically is not an issue. If one requires more storage or services, the service provider will provision it. But with On-Premise, the scalability needs to plan ahead of time to accommodate new growth and users. 


SaaS service fee usually includes the support cost. Since the software is maintained by the provider, all the updates, security patches are included as well. On the other hand, an On-Premise solution requires constant tech support and updates which adds up to the cost.

Topics:Business Insights

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