SaaS and on-premises: which one do I choose?

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What are the factors that determine which one to choose between Software as a service and on-premises? Am having a serious challenge in choosing between software as a service (SaaS) and on-premises for my IT dept. how best can I integrate my existing software with software as a service? What are the pros and cons of the two?

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Answered By 0 points N/A #187590

SaaS and on-premises: which one do I choose?

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I would suggest you to go for SaaS (Software as a Service). SaaS model is based on subscription basis. It is hosted centrally. SaaS has become common delivery model for many business applications. Many business applications are using SaaS model for delivering software service to their clients.
Business applications such as
1. Office and messaging software
2. Payroll processing software
3. DBMS Software
4. Any management software
5. CAD software
6. Development software
7. Customer relationship management (CRM)
8. Games, accounting purpose software
9. Management information system (MIS)
10. Enterprise resource planning (ERP)
11. Human resource management (HRM)
12. Content management (CM)
Pros and cons of SaaS and On premises
1. In SaaS model, you can pay as per consumption of resources. Whereas, In on premises model, you will have to pay for complete package.
2. In SaaS model, Support cost is minimum. It can be reduced to any level. Whereas, In on premises model, support cost is very high. It can’t be reduced in any condition.
3. In SaaS model, Resource consumption is less. In On premises model, resource consumption is high.
4. SaaS model is based on subscription basis. You can cancel this subscription at any time. And reorder whenever you need it. On the other hand, on premises based on complete package .You can’t cancel it any moment. You will have to use complete package or trash it if you do not need it.
5. SaaS is more cheaper than On premises.
6. In SaaS model, pay as you go. In on premises pay at one time.
7. Human intervention is high in on premises. In SaaS , there is human intervention as its all virtual and online.
8. SaaS model reduces human cost and efforts. On premises needs very high human cost and efforts.
9. SaaS model is worked through office so no need to go at client’s office. On premises needs to be worked at client’s office and it comes with some cost.
10. Maintaining SaaS model applications are very easy, As the application is hosted centrally. On premises application maintenance includes high cost, As the application is hosted separately for each separate client.

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