On-Premise to SaaS migration: Exploring the advantages and disadvantages

SaaS vs On-Premise transition

To effectively manage your business activities, it is essential to pick the right model of software. We’re talking about On-Premise and SaaS (software as a service) models. On-premise refers to software installed internally on a company’s own servers, and SaaS, a cloud based solution hosted by providers. As digital technology advances, solutions are rapidly changing from On-Premise to SaaS software. What factors drive this migration, and how can companies effectively migrate from the On-Premise to SaaS approach?

The advantages of migrating from On-Premise to SaaS

On-Premise solutions often fall short of meeting today’s digital needs. When software is installed on your company’s IT infrastructure, accessing data beyond your premises becomes difficult, while opting for the SaaS approach is a more practical choice. Embracing Software as a Service brings numerous advantages to your business. Let’s dive into them.

A significant reduction in initial costs

Acquiring a license for On-Premise software comes with a considerable price tag, as you’ll need specialized equipment to utilize this solution. In contrast, SaaS software eliminates the need for investing in new devices as everything is cloud-based. Managing your data becomes effortless with just an internet connection.

Unlike the high maintenance and update costs associated with On-Premise solutions, SaaS can actually enable cost savings. The provider takes care of necessary adjustments, requiring only a monthly or annual subscription fee.

Flexibility and scalability at your fingertips

SaaS software offers remarkable adaptability to meet your business needs. It ensures high functionality, both in terms of security and convenience. With SaaS, you can effortlessly tailor resources to suit your preferences. Regular updates keep you up-to-date with innovative features, enabling you to make the most of the software’s capabilities over time.

Real-time accessibility and seamless collaboration

SaaS solutions offer unparalleled convenience by granting you access to your company’s data from any computer. This approach fosters seamless collaboration among software users, enabling internal and external teams to discuss and work on various projects, regardless of their physical location. Distance is no longer a barrier to effective teamwork and productivity.

The disadvantages of migrating from On-Premise to SaaS 

SaaS solutions are an effective alternative to On-Premise software. There are, however, various constraints when it comes to user adoption.

Dependency on service providers

With SaaS, your application management relies on cloud computing and is facilitated by a specific provider hosting these services. As a result, you may become dependent on their availability and quality of services, which can directly impact the performance of your software. It’s important to consider the potential risks, such as data loss, in the event of a service provider’s breakdown or bankruptcy.

Data security and confidentiality concerns

When using SaaS, your data is stored in the cloud and hosted by a third-party provider. This can raise concerns regarding data security and privacy since your company is forced to rely on the credibility of the service provider, introducing the risk of potential data breaches. While the SaaS approach offers convenience, it is important to assess the security measures in place to mitigate any potential privacy risks.

❌ A limited level of customization

Depending on the chosen provider, authorized data storage may be limited with the SaaS approach and integration with other existing systems can be difficult. The level of personalization and data backup may vary with each provider.

How to successfully migrate from On-Premise to SaaS?

Migrating from on-premise to SaaS requires thoughtful planning and evaluation. This involves conducting a comprehensive analysis of your functional and technical requirements and identifying the key business processes that need to migrate to SaaS. While SaaS software is cloud-based, it’s important to select a reliable provider for its installation.

When selecting a SaaS provider, consider their experience and reputation, paying attention to their financial condition to avoid partnering with a company on the brink of bankruptcy. Consulting user reviews online can provide valuable insights that help you make an informed decision. Once you have a suitable provider, you can plan and manage the migration effectively.

For a successful migration, you should develop a credible and comprehensive migration plan. Communicate this plan to your employees and provide training on the new working methods they will need to adopt. Lemon Learning can assist you in the implementation of a customized SaaS solution that meets your specific requirements. Our dedicated team will support you throughout every stage of your project.


Sarah C

Sarah oversees all things inbound marketing, exploring the many business uses and topics surrounding digital adoption. Her previous experiences include B2C and product marketing in the social listening space, uncovering emerging industry trends.