Why Is SaaS Better? Cloud vs. On-Premise

If you’re like most people, you probably use a variety of software programs daily. From social media platforms to productivity tools, there’s a good chance that at least some of the apps you rely on are delivered as Software as a Service or SaaS. But what exactly is SaaS and why is SaaS better than other software delivery models?

In this blog post, we’ll take a look at the key differences between software models and explain why is SaaS better than its competitors.

Why Is SaaS Better Than Other Software Models?

There are many reasons why SaaS is better than other software models.

One reason is that with SaaS, users can access their data and applications from any device with an Internet connection. This means that users can work from anywhere, at any time.

Another reason is that SaaS is a subscription-based model, so users only pay for what they use. This can save users a lot of money in the long run.

What is SaaS (Software as a Service)?

SaaS is a cloud-based app delivery method where the vendor develops and manages the software while making it available to its customers through the Internet.

Software as a Service (SaaS) allows businesses to rapidly deploy and scale their software solutions.

In the early 2000s, SaaS was focused solely on addressing a single business problem. However, today, there are more flexible, customized, and scalable options than ever before.

Modern, cloud-based business apps can integrate and connect everything from your financial, HR, and supply chain solutions to your sales and marketing services.

SaaS applications offer many benefits for enterprises compared to on-premises software, including increased flexibility and scalability. Our guide will help you understand why SaaS is becoming increasingly popular and how it can benefit your business.

History of SaaS

In the 1960s, mainframe computers were connected to a terminal that allowed multiple users to share a single software. This became known as a time-sharing system.

As the price of personal computers fell, businesses began to create their own local networks, which were known as local area networks.

The business was responsible for providing and managing the hardware and software, not the tech provider.

With the arrival of the Internet, software vendors started offering their products to customers online.

The ASP model of the 1990s was an early form of Software as a Service (SaaS). This model had some serious drawbacks, however, because each business had to run its own version of the application. This would mean that they had to install the application on each user’s computer, which could prove expensive and time-consuming.

Before cloud-based software, most sales automation platforms didn’t provide a way to easily collect and consolidate information.

The first SaaS model was developed in the late 90s, offering greater efficiency than the ASP model of computing that came before it.

Thanks to the multi-tenant architecture of the software, it can be deployed to several users and customers without having to install it on individual machines.

It allowed you to collect, consolidate, and centrally store important information.

The evolution of software as a service (SaaS) has enabled businesses to gain more visibility and control over their operations. Through embedded technologies like artificial intelligence (AI), machine learning, chatbots, virtual assistants, augmented reality, and the Internet of Things (IoT), SaaS has become even more powerful.

What are the Benefits of SaaS Applications?

Software vendors have been barraging IT pros and business executives with messaging about the cloud’s advantages, including the benefits to operating expenses (OpEx) and capital expenses (CapEx).

Other companies promoted the benefits of on-demand capacity, including increased flexibility and the ability to scale as needed.

There is quite a bit of logic behind why business apps should be deployed on the cloud and billed on subscription. Unfortunately, very little effort has been put into communicating this to LOB leaders.

Deploying cloud-based apps and billing them repeatedly can help alleviate the disconnect between IT and LOB.

SaaS has been around for some time. SaaS applications were primarily developed for sales force automation, customer relationship management (CRM), and marketing purposes.

Today you can find an entire suite of business applications for enterprise resource planning (ERP), project portfolio management (PPM), planning and budgeting, financial reporting, human capital management (HCM), customer service and support, social networking, and social engagement and monitoring.

Unlike most of the older, first-generation software companies, today’s business solutions are modern and next-gen — backed by billions of dollars in research and development.

If you’re a small business or startup looking for an affordable way to leverage the latest technologies, consider the benefits of using a SaaS solution.

From its early stage, the SaaS model was designed to deliver several benefits over on-premises applications, including:

1. Lower Cost

SaaS delivers savings in many areas. First, it eliminates the cost of purchasing and installing the software, as well as ongoing maintenance, and upgrading.

Instead of buying expensive hardware installations, it’s easy to download SaaS from the Internet. This type of software is typically offered on a pay-as-you-go basis, which means that businesses only have to pay for what they use.

Software as a Service (SaaS) can be a great way to get access to powerful, high-end software for your small business. This can be a great option for small business owners who would otherwise not be able to afford such tools.

The monthly subscription fee eliminates the risk of purchasing an expensive piece of software.

SaaS is a software delivery model where software is hosted in the cloud and is accessed by users through the internet.

SaaS providers offer a subscription-based model for their software that can be paid monthly or yearly. Although it may differ from the traditional way of purchasing software, SaaS can still provide many advantages in a business setting.

As more companies integrate cloud technology into their operations, more software solutions are becoming available.

2. Save Time and Money

Many say that time is money. Luckily, SaaS programs can save both. For many SaaS apps, all it takes is an Internet connection and an account.

Software as a Service (SaaS) can save you time and money by transferring the responsibility for maintenance and upgrades to the service provider. This eliminates extra hours that your employees might have to spend upgrading traditional software and any associated downtime.

Because a software as a service (SaaS) app is easy to learn, it’s easier for employees to adopt it. This reduces training costs and saves time because users can get up and running quickly.

3. Easy to Access and Scale

In addition to being accessible anywhere with internet access, a Software as a Service (SaaS) product offers the flexibility of a “pay as you go” system. This means that users can change their plans at any time, and they don’t have to give their vendor any advance notice.

Web-based software is convenient because it can be accessed by users from multiple locations.

4. Compatibility

With the traditional method of installing new software, updating can be a huge hassle. Not only do you have to purchase new licenses, but you also have to take the time to install them. Compatibility issues between employees can also lead to wasted time and effort.

With Software as a Service, customers can easily access their subscription-based software.

While software as a service can be very beneficial in terms of time, money, and human resources, it also has some potential downsides.

Cloud vs SaaS: What’s the difference?

While cost reduction and IT efficiency drove the development of first-generation cloud apps, modern SaaS applications have become platforms for innovation to meet the competitive challenges of the digital age, such as:

  • Integrating your software with popular communication tools like Slack and Zoom.
  • Mobile, cloud, and social media are allowing small businesses and startups to reach markets and customers faster than ever before.
  • With the rise of mobile devices and social media, consumers are more informed than ever.


Why is SaaS better than other types of software delivery?

  1. Reduced Costs: SaaS can be more cost-effective than on-premise or cloud solutions since you don’t have to invest in hardware, maintenance, or upgrades.
  2. Increased Flexibility and Scalability: With SaaS, you can scale up or down as needed without having to make any changes to your infrastructure. This makes it ideal for businesses that are growing rapidly or experiencing seasonal fluctuations.
  3. Enhanced Security: When data is stored offsite in the cloud, it’s less vulnerable to theft or damage. Additionally, SaaS providers typically have robust security measures in place to protect their customers’ data.
  4. Improved Collaboration: Since SaaS applications are delivered via the web, they can be accessed from anywhere at any time. This makes it easy for team members to collaborate on projects and share files regardless of location.

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