When choosing software, most people look at the functionality, scalability and capabilities of the software application. Most of these characteristics are defined by the type of software, so when knowing the difference between SaaS and traditional on-premises apps (not mentioning other types), you can choose wisely and select the solution right for your business faster. Let’s look at the difference between these two types and the benefits SaaS can bring to your company.
The key difference is that the SaaS software is hosted on the provider’s servers and accessed via the internet while on-premises software usually sits on the client’s local server and is not controlled by the provider. Often paid by subscription instead of purchasing very expensive apps, SaaS solutions offer great advantages for those using them.
How SaaS Platforms and Traditional Software Differ
As we have just mentioned, SaaS applications are accessed via the Internet while traditional on-premise apps can be installed right to your computer. Looks like it means greater safety of traditional software, and it makes sense: the local apps cannot be accessed from the outside.
On the other hand, with on-premise apps, the business loses free convenient access via any computer, from any place for themselves which can be crucial in the modern ever-changing world. This provides more opportunities for easy project management and transparency. However, governmental and military organizations would definitely choose on-premises apps for more confidentiality. But have you ever experienced how slow governmental apps are? So all traditional apps are.
Let’s continue with that. Remote access allows for faster and easier maintenance and regular software application updates. Your monthly subscription might include all the needed upgrades and patches while you sometimes need to pay for new on-premise versions or ask the vendor to arrive at your office to fix anything.
Well, about the pricing and payments. At first glance, on-premise software looks simpler: you pay once, and the software application is yours. Paying monthly for a SaaS product might seem too much, but in reality you might pay less. Especially when it comes to additional features and opportunities. Try to account for the total cost of ownership (the TCO) for using a SaaS platform with all the new features available, and you will see that the TCO of on-premise apps with its constant paid upgrades and slow work is much higher.
Find out why else SaaS apps are great at the Digital Ad Systems Company blog! Now, as we dive deeper into this difference, let’s look at the pros and cons of each software type.
More SaaS Benefits and Challenges
What distinguishes a SaaS platform? The first advantage, related to the mentioned ones, is fast and easy deployment. As the solution is provided online, it means easy access from anywhere and installation doesn’t require traveling and additional spending. The challenge here is to have a stable internet connection on both sides as when something happens at the Internet providers’, installation or upgrade will be delayed or incorrect.
At the same time, location at the online server means greater scalability and mobility. You do not need additional hardware to scale and do not need to move all that software when your business is growing, Though costs might grow with time and you’ll depend on the internet access when moving or starting new scalable business branches, such flexibility in growth pays off.
Software as a service solutions are really customizable. The vendor usually provides a predefined framework that can be used for building consistent user experience and quick setup. However, this capability can be affected by the provider’s changes, and customization capabilities might be limited due to the amount of customers your vendor has. However, it can be easily solved if you choose the right vendor.
One more thing to mention: robust APIs and integration capabilities are a must. SaaS platforms offer you to easily connect with other cloud services and solutions the company already uses. The challenge in this part is potential issues with custom integrations.
Both sides of Traditional Software
Well, what about traditional apps? Let’s look at their pros and cons.
On the one hand, purchasing an on-premise app means full control over installation and deployment. Though it can be time-consuming, some people prefer to do everything by themselves.
When we mentioned SaaS upgrades, we didn’t mention the situation when you do not need such updates, On-premise apps can avoid maintenance and smaller upgrades and just work seamlessly. However, there is a risk of skipping too many upgrades and getting very outdated software solution at some point.
Full data control and security are a plus if you work with very sensitive data: there is no intermediate between you and the information you work with. However, to avoid the risks of losing all your data (SaaS solutions back it up automatically), you’ll have to set up local data backup spending more on additional hardware.
What about the user experience? Distinguishing cloud-based SaaS platform from regular software applications, if you are not going to grow, this is a great opportunity to customize everything for your internal users. Though, when you have several installations and upgrade them, each installation would require attention.
The Bottom line
Comparing the difference of SaaS platform from regular software, you can clearly see that it all depends on the needs of a particular company: when you need more security and do not care about expanding, on-premise software is just for you. However, if you are planning to grow and develop your business, try some online SaaS solutions based on remote servers: though you might encounter specific vendor terms in each case, choosing SaaS will lead you to more transparent processes and greater growth. In case you are still unsure, reach out to the Digital Ad Systems Company team to get detailed info.
FAQs
While one-time purchases may seem more cost-effective as no recurring subscription fees are needed, in reality, the Total Cost of Ownership might be greater in the case of choosing on-premise apps due to costly maintenance and additional purchases of new capabilities.
Most SaaS applications require an active internet connection to function, though some offer limited offline capabilities. Nevertheless, the hybrid option or ensuring offline capabilities are enough, is needed.
Actually, it really depends on the vendor. Most of the SaaS solutions have limited customization options, though some can offer extended capabilities.
Comparing SaaS platforms and regular software applications, in terms of saving deeply sensitive data (e.g., governmental data), SaaS solutions are less safe as there is always a risk of getting this data midway. In other terms, most SaaS solution providers really care about security and take robust security measures to ensure data safety.
First, assess your needs. If you need to scale, choose SaaS. If you are not a fast-growing company but need deeper security, look at on-premise solutions.