Software As A Service is a fastest growing sector in Cloud computing. 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 the recent
In this article, we will look at the advantages for using SaaS solution for those
organizations where there are no privacy and security concerns on the information.
1. INFRASTRUCTURE: For any On-Premise solution, an organization has to
spend lot of money for the purchase and support of hardware, software,
storage etc. Which means, lot of capital to be invested to get even a small
With the SaaS 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.
2. ARCHITECTURE: For a SaaS platform, the architecture is already thought
about and the services are ready to use. There is no need for up front
architecture work. The only exception would be how to consume the
For On-premise, lot of time and money gets spent on defining the
architecture, which can even impact the time to market the product.
3. IT Involvement: On-Premise solution requires lot of IT involvement. This
may include Architecture work, Development Efforts, Testing, Infrastructure
SaaS solution biggest advantage is no or very less IT involvement.
4. SCALABILITY: With the SaaS pay-as- you-go model, scalability is typically is
not an issue. If more storage or services are required, the service provider
will provision it. But with On- Premise, the scalability needs to plan ahead to
time to accommodate new growth and users.
5. SUPPORT COST: 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, On-Premise solution requires the
constant tech support and updates which adds up to the cost.