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Why to choose SaaS over On-Premise

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

feature/product out.

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

work etc.

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.

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