When it comes to choosing the best-suited system SaaS (software as a service) or On-premise for a company it can be a difficult decision. Today’s computer technology providers recognise the market needs and respond with solutions that increase productivity while decreasing operational expenses. SaaS is a way of offering services or applications on the internet. It is a cloud-based system. The service provider maintains and updates the software programme on a set of private servers for all customers. There are plenty of examples like Microsoft applications, Gmail, FreshBooks for accounting; Klipfolio for analytics, Mailmodo for email campaigns and Sucuri for WAF. On-premise is installed and maintained locally by the customer and the information is kept on their servers. Let’s look at some pros and cons to decide on SaaS Vs On-Premise, which is a better solution. SaaS Vs On-Premise, which is better?

Hosting and Ownership- 

Hosting of the SaaS application is at the service provider’s server and accessed using the browser. The implementation process is pretty straightforward and simple. The application service provider fully owns both the software and the hardware.

Whereas for On-Premise, the applications are installed locally on the customer’s computers and servers. Implementation is a much longer process that needs more time for planning and execution. Service providers own the software, hardware and data.


SaaS software pricing is on a subscription basis and charged monthly or yearly. SaaS is generally like taking software for rental and paying the rent periodically. The SaaS pricing is determined by several factors and is normally cheaper than On-premise.

You can read more on the Subscription-Based Pricing Models and also the factors to consider to determine the SaaS pricing here.

On-premise software is payable as a one-time cost or recurring depending on the model. It is higher priced than the same SaaS version of the software.

Support and maintenance-

SaaS is firstly responsible for any deviation from the application’s typical behaviour. Secondly, SaaS handles all the server maintenance costs and upgrades to the latest version tasks.

on-premise customers should have an IT section that can maintain servers for their; optimum use and resolve any issues with that software programme and upgrades.


SaaS have mechanisms in place that are faster at detecting possible problems and narrowing the scope; of an incoming threat before it reaches important data. They continually improve their defences in response to constantly emerging cyber threats so that their clients don’t have to. SaaS build its own security walls and barriers; since it is its job to develop and maintain technology.

In the case of on-premise, the IT department is in charge of the applications that get installed; as well as data access and programming tasks. The business has to invest in the IT department to sustain and keep data secure.


SaaS makes it easier to add more users, expand storage capacity or go downsize. It can upgrade or downgrade and add additional features within minutes.

On-premise IT department has to keep an eye on performance and market trends; to indicate whether the system needs an upgrade or not. Updates are more complex and take a longer time.

Conclusion- SaaS Vs On-Premise

We’ve seen what factors influence each implementation model; selecting one over the other is dependent on the needs and the budget of the organisation. Both have their own set of benefits and limitations. Low upfront expenses, scalability, data security; automated functional and technical updates and less involvement from internal IT professionals are benefits of SaaS over on-premises solutions.

As a result of the worldwide epidemic; many organisations will likely move to a more distributed workforce. To conclude SaaS-based solutions are simple to set up, secure, and available from anywhere, saving you time, cost and concern. SaaS supports the Future Workplace strategy. Because SaaS solutions simply require a device with Internet service, and it provides full flexibility to work.

By Akshita Chandak

Marketing & Finance Intern, InsightDials

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