Breaking SaaS Chains: The Rise of On-Premise Solutions
Software-as-a-Service (SaaS) has become the dominant model for software delivery in recent years, with many businesses relying on cloud-based applications to manage their operations. While SaaS offers many benefits, including ease of use and cost-effectiveness, some companies are starting to question whether it is the best option for their needs.
In particular, the pricing model for SaaS products, which is usually charged per person per month, can accumulate quickly and become frustrating for many companies over time.
As a result, some companies are beginning to explore the idea of switching back to on-premise software solutions. But before we dive into why on-premise might rise, let’s compare these two models.
On-Premise model
- Software is installed and runs on company/cloud servers and hardware.
- Offers greater control and customization options, allowing businesses to tailor the software to their specific needs.
- Provides complete ownership and control over data and infrastructure.
- Involves a one-time payment for the software license, after which the software can be used indefinitely.
- Can be more cost-effective over the long term, as there are no ongoing subscription fees.
- Can be installed on secure private networks.
- Can be a bit difficult to manage and update, requiring a dedicated IT team to oversee the process.
SaaS model
- Software is delivered over the Internet, typically through a subscription model.
- Offers ease of use and scalability, allowing businesses to quickly add or remove users as needed.
- Does not require a significant upfront investment in hardware or infrastructure.
- Generally offers lower upfront costs, with subscription fees typically charged on a per-user, per-month basis.
- May not provide the same level of control or customization options as on-premise software.
- Data and infrastructure are typically owned and controlled by the SaaS provider, rather than the customer.
- Can be more vulnerable to security risks and data breaches, as it faces the internet.
One of the main advantages of the on-premise model is that it offers greater control and customization options. With on-premise software, companies have complete ownership and control over their data and infrastructure, allowing them to tailor the software to their specific needs.
This is particularly important for businesses with unique requirements or regulatory constraints, which may not be easily accommodated by a one-size-fits-all SaaS solution.
Another advantage of on-premise software is that it can be more cost-effective over the long term. While SaaS may offer a lower upfront cost, the monthly subscription fees can add up quickly, particularly for larger organizations with many users. In contrast, on-premise software typically involves a one-time payment for the software license, after which the software can be used indefinitely. This can be particularly appealing for businesses that are looking to keep their costs under control.
While the idea of installing an on-premises product in your infrastructure may be intimidating at first, it’s important to remember that today there are now easier ways than ever before to create an on-premise service using cloud providers like Amazon Web Services (AWS) or DigitalOcean.
Many small and medium-sized tech companies already use cloud services, which often come with the convenience of one-click installation products. These instances can be easily configured and managed using the management console and can be scaled up or down as needed.
Hence, this does not impose an extra workload on them.
Small and medium businesses with lighter usage requirements may find it unreasonable to pay for high usage by other members in a SaaS product.
The attractiveness of the SaaS economy for companies has unfortunately resulted in users being unfairly burdened with its costs. Even BMW wants to sell you a subscription for your vehicle’s features. 🤯 [theverge]
While the spree of turning all things into SaaS continues, there is a gap in the market for certain products that are currently open-source and on-premise.
That’s why we’ve started exploring ideas for building such solutions with the help of my dear friend Mert Hurturk. This brilliant idea actually came from him.💡
We believe that on-premise & open-source solutions can provide a more cost-effective and customizable alternative for many businesses today, and we’re excited to see what the future holds in this space.
We need your opinion!
If you are tired of paying endlessly for any SaaS product and would like to see an alternative, or if you think developing an on-premise & open-source product is a bad or good idea, please comment on this post or contact me.
