SaaS or On-Premises?


The infographic below perfectly illustrates the aspects to consider when determining whether to implement an On-premise or a Cloud SaaS Solution. Both options appear the same on the surface but, like most icy cubes, the real concern is what lies below.


On the left hand side we see on-premise solutions, and while the original licensing cost is minimal, the number of back end services needed can be overwhelming. Some of the additional things you will need to invest in are: New implementations and customization, hardware upgrades, IT personal, maintenance and training. Additionally there are a number of ongoing costs that will need to be maintained as long as we host the solution on premise. Some of the ongoing costs include: Rewriting customization and integration, upgrading applications, maintain hardware, downtime, performance tuning, maintaining and upgrading network and security, among others.

Now let’s take a look at Cloud Computing solutions. Clearly there is a higher initial cost mainly due to the subscription fee, however, there are considerably less back end needs. After the subscription fee, only implanting, customizing and training are needed for SaaS Solutions. This option reduces the overall implementation time of projects, allowing the business to realize value from the project sooner than traditional on-premises deployments. Another aspect to consider is that cloud deployments allows the rest of your team to focus less on infrastructure and application delivery. Instead focusing on business priorities and provide insight into the data, which is often neglected in in-house projects.

There are many factors to consider when choosing between solutions and every situation is unique. A lot will have to do with your organization’s budget, needs and available time

What are some considerations to have when choosing between a SaaS or on-premises?


Posted by Alvaro Tassano on InterConnecta 

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