SaaS vs. On-Prem vs. Hosted: Which One Suits Your Business Best?

Modern day businesses have a number of different options when it comes to how they deploy their software. The most popular choices are SaaS (Software as a Service), on-premises, hosted, and cloud-based.

This choice becomes especially critical for those who come in contact with enterprise level technologies on daily basis. All four have their own advantages and disadvantages that should be considered before making a decision.

But which one is right for your business?

Here we'll take a look at everything and help you decide which deployment method is best for you.

Understanding SaaS, On-Prem, and Hosted

SaaS

SaaS, or software as a service, is a type of subscription software that allows users to access and use the software from a remote location.

SaaS is popular among small businesses because it's easy to set up and doesn't require any technical expertise or knowledge to maintain. It's also a good choice for businesses that don't have the budget to invest in on-premises software or the infrastructure to host their own software.

On-Premises

On-premises software is installed and run locally on your company's computers and servers. On-premises software requires a higher upfront investment than SaaS because you need to purchase the licenses for the software and have the necessary infrastructure to support it.

But, it can be more cost effective in the long run because you own the software and don't have to pay ongoing subscription fees.

Hosted

Hosted software is similar to on-premises software in that it's installed locally, but it's hosted on servers that are owned and managed by a third-party provider.

Hosted software solutions, such as Windows Virtual PCs are a good option for businesses that want the flexibility and customization of on-premises software without the responsibility of managing their own servers. It's also a good choice for businesses that don't have the budget to invest in on-premises software or the infrastructure to host their own software.

Differentiating SaaS, On-Prem, and Hosted

Software as a Service Solution

ProsCons

Access from Anywhere

The biggest advantage of SaaS is that it can be accessed from anywhere as long as you have an internet connection. This is because the software is hosted on remote servers and not installed locally on your company's computers.

This means that employees can work from home, on the go, or even from other countries without having to install any software or connect to a VPN. It also makes it easy for companies to allow their employees to use their own devices for work, which can be a big cost savings.

No Upfront Investment

Another advantage of SaaS is that there's no upfront investment required. You simply pay a monthly or annual subscription fee and you have access to the software.

Additionally, because you only pay for what you use, it can be a more cost-effective solution for businesses with fluctuating or unpredictable needs.

Complete Responsibility of Third-Party Service

Third-party service provider is responsible for the maintenance, updates, and security of the software. This can be a big advantage for businesses that don't have the in-house expertise or resources to manage their own software.

It also means that you don't have to worry about keeping your software up to date or protecting it from cyber attacks. The service provider will take care of all of that for you.

Less Control Over Software

Because you don't own the software, you have less control over it. For example, if the service provider decides to increase the price of the subscription, you have no choice but to pay it or switch to another provider.

Lower Speed

The most common complaint about SaaS is that it can be slower than on-premises software, especially when there's high internet traffic. This is because the software is hosted on remote servers and relies on a strong internet connection to work properly.

On-Premises Software Solution

ProsCons

Complete Control Over Software

When you purchase on-premises software, you own the licenses for the software and have complete control over it. This means that you can customize the software to meet your specific needs and you're not at the mercy of a third-party service provider.

Additionally, because the software is installed locally, it can be faster and more reliable than SaaS.

High Customization

Customization is another big advantage of on-premises software. Because you own the software, you can make changes to the code to meet your specific needs. This is not possible with SaaS, which is why it's often referred to as a "one size fits all" solution.

Potentially Lower Cost in the Long Run

Although there is a big upfront investment required to purchase on-premises software, it can be a more cost-effective solution in the long run. This is because you only have to pay the initial investment once and then you own the software forever.

Additionally, because on-premises software can be customized, you may be able to avoid paying for features that you don't need.

High Upfront Investment

The biggest downside of on-premises software is the high upfront investment required to purchase the licenses and set up the infrastructure to host it.

Additionally, because on-premises software requires dedicated hardware and infrastructure, it can be a big challenge to scale up as your business grows.

Requires In-House Expertise

Another downside of on-premises software is that it requires in-house expertise to install, configure, and maintain it.

Additionally, because on-premises software is not hosted by a third-party service provider, you are responsible for ensuring that the software is always up to date and protected from cyber attacks.

Hosted Solutions

ProsCons

Reduced Cost

The biggest advantage of hosted solutions is the reduced cost. Because the software is hosted by a third-party service provider, you don't have to purchase the licenses or set up the infrastructure to host it. This can be a big savings for small businesses or businesses with limited budgets.Flexible Scalability

Another big advantage of Windows Virtual PCs hosted solutions is the flexible scalability. Because the software is hosted by a third-party service provider, it's easy to scale up or down as your business needs change. This is a big advantage over on-premises software, which can be a big challenge to scale.

No In-House Expertise Required

Another advantage of hosted solutions is that you don't need in-house expertise to install, configure, or maintain it. This can be a big advantage for businesses that don't have the resources or personnel to manage their own software.

Better Uptime

A huge advantage of hosted solutions is the better uptime. Because the Windows Virtual PCs software is hosted by a third-party service provider, they are responsible for ensuring that the software is always up and running. This can be a big benefit for businesses that rely on their software to run their operations.

More Dependency

This is why you have to pick a hosted solution provider that you can depend on. Otherwise, your business will be at the mercy of their uptime and reliability.

Disasters and Downtime

Again, very few hosted service providers offer zero downtime. So, if there's a problem with their servers, your software will be down too. This can be a big disadvantage for businesses that rely on their software to run their operations.

The end of the day, it's up to you to decide whether on-premises software or a hosted solution is the right fit for your business.

Hosted solutions are nowadays getting more popular because of the many advantages they offer. Service providers are offering more and more features and capabilities to hosted solutions, making them a more attractive option for businesses.

Solutions like vDesk.works are constantly innovating and expanding the capabilities of their hosted solutions to meet the changing needs of businesses. So, if you're considering a hosted solution for your business, be sure to check out vDesk.works.

Posted By:
Authors Emma Carson
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