Even though companies are more likely to consider SaaS applications over on-premises options, that doesn’t mean the extinction of in-house software. The cloud is powerful, but it’s not that powerful.
Choosing between SaaS, on-premise, and off-premise or hosted applications can be a challenge. There are a lot of options to consider. Smaller companies and start-ups are more likely to choose SaaS because it is more affordable and quicker to start up. A smaller up-front investment looks good on a new organization’s books and has a controlled monthly cost. Larger, established companies acquiring new businesses may consider SaaS for the new companies, while using licensed software at their main offices. Having already invested in on-site ERP at the office with software licenses lasting a few years or more, there is no need to pay for software again with SaaS. Most SaaS software, such as Microsoft Dynamics® ERP, can easily interact between the on-premise software at the main offices and with the SaaS at satellite locations.
SaaS can run on computers on-site or be delivered over the internet from an off-site location owned by the vendor or other third-party operator. Choosing between on-site and off-site deployment often boils down to whether the company has the means to employ an IT department capable of attending to the infrastructure.
By Jim Krahn with BDO Solutions,