SaaS vs On-Premise: Deciding the best fit for your business

SaaS vs On-Premise critères

In the digital era, management software options have become more accessible for businesses. To find the right tool, analyze your needs and understand the differences between Software-as-a-Service and On-Premise approaches (SaaS vs On-Premise). Consider the pros and cons of each solution to make an informed choice for your business’s management needs. What will it be?

Understanding the SaaS model

Popularity of the SaaS (Software-as-a-Service) model has skyrocketed in the last 10 years, offering the convenience of accessing management software through the internet. It eliminates the need for installation on a company’s infrastructure, and is entirely hosted by the provider. With SaaS, businesses can simply subscribe and access the software remotely, with a monthly or annual subscription, without the hassle of maintaining it on-site. 

Advantages of the SaaS model

SaaS provides numerous advantages for businesses. It saves valuable time as there’s no need to install the software on your company’s server or IT infrastructure and the provider takes care of all maintenance and updates. SaaS also offers flexibility by adapting to your business needs, allowing easy access to data stored online. It ensures stability and security, providing peace of mind for all your operations.

Limitations of the SaaS model

Using SaaS software also comes with some limitations. Your data protection and storage isn’t under your control. And without a stable internet connection, you’ll struggle to access the software. Since SaaS is hosted by a provider, there’s also risk of data loss if the provider experiences technical issues or suddenly goes bankrupt.

Understanding the On-Premise model

The On-Premise model involves installing software directly onto your company’s workstations and can be hosted by your company or the provider. The On-Premise model also means you purchase the software outright, providing you with a license indefinitely.

Advantages of the On-Premise approach

The On-Premise approach offers many advantages to its users. This model gives you complete control over your data, eliminating the need for hosting fees. What’s more, the data installed remains accessible to you without an internet connection. This guarantees you better confidentiality of your information.

Disadvantages of the On-Premise model

Just like SaaS, On-Premise solutions also have their limitations. They require specific equipment for installation, as well as maintenance and updates that create recurring and additional costs. The software is also at risk of becoming obsolete if regular product updates are unavailable in the services offered.

It also prohibits access to applications outside your company, limiting you to plan and manage all of your projects on premises.

Factors to consider when choosing between SaaS vs On-Premise

Finding the right software for your business isn’t always easy, since each tool has distinct characteristics. SaaS solutions are accessible at a low cost, providing you with a variety of interesting features that can be adjusted according to the needs of your company. The On-Premise approach is an interesting option if you’re looking to host the software yourself. In terms of cost, its acquisition still represents a significant investment when compared to SaaS solutions.

To make the right choice, consider the following factors :

  • the size of your structure
  • the real needs of your business
  • your working environment (telecommuting, agency work, etc.)
  • the degree of customization desired
  • the technical equipment available
  • the budget devoted to the acquisition of a management solution…

Keep these things in mind, when you consider the SaaS vs On-Premise dilemma and choose the software that best meets your requirements. Lemon Learning, a trusted partner to help you find the right model for your company. Whether it’s ERP software or any other business management solution, don’t hesitate to contact our team.


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.