What is
Software as a Service
(SaaS)?
Software as a Service (SaaS) is a cloud-based solution on a subscription basis. This type of software service naturally evolves over time and new features are automatically introduced with no need to install, upgrade, or maintain software packages.
What’s the Difference?
On-Premise | SaaS | |
Cost | Higher initial costs, as you have to purchase hardware and individual licenses | Lower initial costs, with smaller ongoing annual or monthly subscription payments |
Updates & Maintenance | Completed periodically by your internal IT team, with additional costs for upgrades and new features | Regular updates are included with your subscription, without disruptions |
Infrastructure & Set-Up | Longer implementation and stored on your own servers | Shorter implementation and no hardware required |
Scalability | Will need to add more servers and storage as you grow | Your cloud storage will automatically scale with you as you grow |
Accessibility | Only available on-site, on computers that have the program installed | Available anywhere with an internet connection and a web browser, to users with the right permissions |
Security & Privacy | Handled by your internal IT team | Included in your subscription, taking advantage of the cloud provider’s advanced security measures |
Integrations | Requires IT involvement and customizations to integrate with different systems | Many providers offer ready-made integrations, as well as APIs for custom integrations between systems |
Up-time | Internal IT team responsible for 24/7 up-time during peak load times, upgrades and patch installs | Vendor takes responsibility for 24/7 uptime, often offering an uptime over 99% |
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