This question has come in forefront of the decision maker just couple of years back, the reason is invent of software as service concept from some innovative service provider, that was made possible with fast internet connectivity and advancement in network and hardware instruments (this is also known in the technology circles as Cloud based software).
But since this concept came into market place, this has become first question in any board level discussion around new software installation. Following points highlights the difference between the two and why one should go for SaaS.
IT Staff/Department: For Onsite installation the firms may need onsite IT staff to make sure that the application is up and running at all the times and accessible to all the users. If you have small IT staff, already overloaded IT staff or no IT staff at all, you may go for cloud based SaaS provider.
Security of Data and compliance: This is most important argument in favour of onsite installation however if Saas Vendor uses a SAS-70 type data centre to host then your data is probably more safer (reference from LIMS book Buyers Guide)
Guarantee & stability: If it is onsite installation, the firm will be responsible for up-keeping hardware porting the software and database, which may need UPS (uninterrupted power supply), high bandwidth local network (mostly wired lan), security (from theft/damage) etc. vs SaaS provider may be providing all this within the cost.
Multi site users: Onsite users may get comfort of speed and convenience of resolution but other site users may not feel the same service as they have to rely on middle layer of internet service provider as well as local infrastructure at their site. SaaS based services rely on internet only thus all branches or network can access the application with the same ease and convenience.
Cost isn’t the most important factor
Hardware cost: A firm may have to ask for new hardware/database server and assisting hardware (router/UPS etc). SaaS provider is able to provide cheaper cost for hosting the application as the cost is shared with their other clients/customers.
Upgrades of hardware and infrastructure: may be very costly as IT hardware cost reduce to 0 after couple of years. SaaS provider provides those upgrades as a need to keep up with the time and competitor challenges.
Well these are few but key thoughts on the subject that must be considered whenever you or your firm discussing next about the new software installation.
