Choosing Between a SaaS Solution Versus On-Premises
Moving to the cloud has become an increasingly popular trend in most industries. With the increasing adoption of cloud solutions, many organisations are asking what the difference is between cloud and on-premise and what is best for my business?
There are many factors that a company must consider in order to decide whether a cloud infrastructure is a right fit — companies with legacy systems and large IT teams to support them may not be as open to moving all of their data into the cloud. However, for many organisations, there are numerous advantages that just can’t be ignored. This is especially true for smaller companies with leaner IT teams and less up-front capital to invest in an on-premises solution.
Here are some reasons to consider SaaS over a traditional on-premises solution:
- Cost – Software License and annual maintenance fee take up quite a significant amount of the cost if you go with on-premises solution. Cloud-based AP automation requires no software, hardware or maintenance fees. Most follow a pay-per-use pricing model, which is ideal for companies with fluctuations in invoice volumes. Companies that choose SaaS also save on the large upfront costs associated with an on-premises solution.
- Installation – Since there is no server or desktop computer setup (you only need a scanner and Internet connection), companies using cloud-based automation typically take less time to implement and gain immediate access to its benefits, resulting in more rapid ROI.
- Data Backup – Data and Software are automatically backed up on a regular basis by the software provider
- Support – Upgrades and enhancements to SaaS automation solutions are made in the cloud, so little IT involvement is required. An added bonus is that most cloud solutions offer 24/7 tech support for issue resolution.
- Upgrades – Upgrades and enhancements are handled automatically by the software provider and included in the subscription price.
- Scalability – With a SaaS solution, there is no need to purchase and install additional servers to support the growth of your company — this is handled automatically by the software provider.
The table below gives you a side-by-side comparison of an on-premises approach vs a SaaS approach
Successful deployment of technology depends on an understanding of what is needed and why. The cloud might not be the right fit for every organisation or IT department, but as a whole, the benefits of cloud-based solutions are hard to deny.
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