On-premises vs. SaaS: Make your Choice

Saas has been making the buzz in the recent years and has now gained the status of being a feasible software solution. This new technology is slowly providing a paradigm shift to the way software systems are used. It is really important that the business owners keep faith on this new technology to let it sustain against the traditional systems. If you have been wondering about making a choice between Saas and On-premises system for your business communication then it is important that you weigh all your options carefully. In this article, we will try to understand the advantages and disadvantages that these two systems offer:



· No huge initial investments.

· Cost of infrastructure is the provider’s responsibility

· Backups will never be a headache

· Centralized upgrades that does not affect day to day functioning

· Expert support available from the providers decreasing reliance on the in-house IT department

· Remotely accessible

· Enhanced reliability and security

· Enhanced uptime

· Immediate access to a wide range of applications


· Decreased system control

· Data is stored by a third party

· Customization option reduced

· Slow but steady rise in price

· Requirement of internet connection

· Slower performance

· Integration with third party applications is a big issue

· Client does not have any ownership rights on the applications



· Data stored and maintained within the organization

· Easy customization and control on the systems

· Users are not required to pay the subscription fees

· Internet connection not mandatory

· Shared hardware can be used

· Faster performance

· Easy integration with third party applications

· Ownership of the software lies with the client


· Huge upfront investment

· Maintenance and upgrade a regular affair

· Dedicated IT department is required

· Physical space needed

· Client is responsible for the software upgrades

On-premises systems are preferred by many companies as they do not want to outsource the vital activities like data storage activity. The biggest disadvantage with SaaS, as is often cited by organizations, is data security. Data pilferage can result in huge damages to a company and not all are ready to take the risks. Also data backup becomes a tricky affair as packages offered under Saas often charge higher for the archiving old data. On the other hand on-premises systems have the facility of in house storage that can be accessed as and when needed. Also data pilferage can be controlled at the client end without too many tweaks in the original system.

With on-premises systems, maintenance and upgrades become really easy but the cost for the same is already included in the packages. The costs associated with SaaS might be low initially but the periodic payments can prove to be expensive. Some of the common costs that business owners have to bear for both the systems are:

· Implementation costs

· Employee training

· Data migration

· Other consulting

If you are going to use third party applications along with the SaaS then it is imperative that you check for the applications that can be integrated with the system you are opting. Often it has been witnessed that the SaaS systems do not support third party applications. This decision becomes even more important when you are already using any third party application.

The choice between SaaS and On-premises is quite a tricky one as you have to judge your prevailing business operations in conjunction with the option you want to use. SaaS is an attractive choice if you are setting up a new business and do not wish to invest a fortune at the very outset. On the other hand if you do not want to let your hardware and software assets go waste then you can opt for the on-premises option.

Michelle Patterson works with companies and dealers that deal with the new VoIP telecommunications technology. She helps people understand the new technology and how to use it for their own benefit

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