When it comes to enterprise software – to buy or to rent, that is the question. Think of the differences between the two as being a bit like buying a house versus renting an apartment and living in an apartment block that you share with others.
In the first scenario, you have all the control: you can renovate your home as you see fit, and you do not have to share any amenities with anyone else. However, you are solely responsible for the maintenance of the property. If something breaks, you will need to open up your wallet to get it fixed. Conversely, in the latter scenario, you can use all the facilities as you wish. Also, you do not have to worry about maintenance. Sadly, you cannot make any significant changes as the property does not belong to you.
This concept ties back to SaaS and packaged software as both purchased and leased software. Below, we unpack the pros and cons of both software options.
On-premise, or packaged, enterprise software is software that your organisation buys and installs on its servers. This software is hosted on-site, owned by the company that purchased it, and can be configured and modified to suit your business’s unique needs.
Advantages of packaged software
- There are no subscription fees.
- Your data is stored inside your organisation, giving you all the control.
- The software is often shareable across internal systems.
Disadvantages of packaged software
- When the software is updated, you will need to buy the new version or the extended licensing.
- Similarly, as the software receives upgrades, you may need to invest in new hardware.
- You are responsible for the maintenance of your environment, which is time-consuming and costly.
- Data stored inside an organisation has an increased level of risk. If there is a data breach in your organisation, your software and data may also be compromised.
- Packaged software is not necessarily scalable and may require significant additional upgrades or purchases as your business grows.
Software-as-a-Service (SaaS) is software you “rent”. This software is hosted externally in the cloud by a service provider and is accessible via an Internet connection. Because of the subscription-based nature of SaaS, there can be flexibility in terms of customisation. Additionally, you do have the versatility to scale up or down as your business needs change.
Advantages of SaaS
- The software access is available on most devices with an Internet connection.
- Updates are automatic.
- SaaS gives businesses faster time-to-market.
- Dramatically reduced upfront investment costs.
Disadvantages of SaaS
- If your Internet connection is down, you will not be able to access the software.
- There may be a reduced level of customisation.
In an ever-changing IT landscape, it can be overwhelming to find the right solution for your business. At Nebula, we can help you identify the best technology to meet your unique requirements. Complete the form below to find out more.