SaaS vs On-Premises: Choosing the Right Enterprise Solutions

SaaS vs On-Premises Choosing the Right Enterprise Solutions
SaaS vs On-Premises: Choosing the Right Enterprise Solutions

SaaS concept (Software as a Service from English) is a business model for using software. Here the customer is provided with a convenient WEB interface and full access to the application via the Internet. The software that implements the functionality is usually described in the technical documentation of the project. Thus, the newest business model of saas development company of the relationship between the buyer and the software developer is presented.

On-Premises vs. Off-Premises

In the SaaS model:

  • one application can be used by several clients;
  • the application is suitable for remote use;
  • technical support for the application is included in the payment;
  • payment is charged either on the basis of the volume of transactions performed, or in the form of a monthly payment;
  • app updates and upgrades are transparent and smooth for users.

SaaS systems do not require particularly lengthy preparation before implementation. It reduces any types of costs that may be associated with the implementation of the project. And the consumer gets the return as as possible in the form of optimized business processes.

Small and medium business leaders don’t often think about complete data storage security. The introduction of automatic cross-checking, improving the quality of documentation and improving the production culture are the main results of using such systems.

What is SaaS

The SaaS model will allow you to get the benefits of a commercial software license, operation without the complexity of administration and a low cost of acquisition. Many types of software work well with SaaS. Examples include CRM systems, project management, human resources (HR), email, video conferencing. SaaS applications are often licensed on a per employee basis, sometimes with a small number of users.

A distinctive advantage of the SaaS model for the user is the absence of costs associated with updating.

Key benefits of SaaS

A distinctive feature of this type of software from enterprise app development company is the placement on the server of the software supplier of the main “core” of the software part. From here all the benefits of SaaS follow:

  • the user does not need to install this software at his workplace, since it must be located on the provider’s server;
  • to work requires a relatively minimal set of licensed software;
  • there is no need to monitor software updates;
  • you do not have to worry about the safety of the information used by the proposed software;
  • the user’s office is not tied to a specific computer and its capacity;
  • as the world practice of a similar industry shows, such software turns out to be cheaper than similar versions.

SaaS vs. On-premises Comparison

SaaS concept has several components:

  • Outsourcing. We are talking about IT outsourcing and, naturally, outsourcing of IT services. The peculiarity lies in the fact that in this case. The service is not transferred to the side of the provider. But the process of working communication with the performer often occurs at a distance.
  • Reliability and safety. When using SaaS, a whole complex is associated with the use of legal and technological problems that are faced by outsourcing and outsourcing of business processes as well.


With regard to the issue of data protection, it must be understood that a security guarantee should be provided along with the main service, as a mandatory component. There are requirements for information security, which are determined by the relevant international standards. In order to be confident in the security of your data, you should choose a company that can confirm compliance with the standards with an appropriate certificate.

All this creates not only tangible financial benefits for the consumer, but also an additional benefit from using SaaS, which is difficult to overestimate: the client gets the opportunity to engage directly in his business, without delving into processes that are not directly related to his activities.


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