SaaS vs. On-Premise Software: Which Is Right for Your Business?
Compare the benefits, costs, responsibilities, and practical considerations of cloud-based and locally installed software.
Many companies are switching to software-as-a-service solutions rather than operating software entirely in-house. While SaaS is often the best choice, it is not automatically the right direction for every organization.
SaaS and on-premise software each offer important advantages.
The right choice depends on your infrastructure, internal IT resources, security requirements, regulatory obligations, storage needs, internet connectivity, and long-term business direction.
SaaS and On-Premise Software Compared
SaaS, or software as a service, is cloud-based software that runs on the provider’s servers and is normally accessed through an internet browser. The provider manages the software installation, infrastructure, maintenance, upgrades, security measures, and storage of the customer’s data.
On-premise software is installed on servers operated by your organization. It may still be accessible over the internet, depending on how the server environment is configured, but your internal IT team or technology partner is responsible for maintaining the infrastructure and software environment.
Some products are only available through one deployment model. Others, including DBGallery, allow organizations to choose between SaaS and on-premise deployment.
| SaaS Provider-managedThe vendor operates the software, infrastructure, upgrades, backups, and supporting systems. | On-premise Organization-managedYour organization controls the servers, network, storage, installation, maintenance, and security environment. |
Benefits of Software as a Service
SaaS solutions can reduce implementation time, infrastructure costs, and the amount of internal technical work required to operate business software.
- Reduced implementation time
- No local installation or server maintenance required
- Reduced dependence on an internal IT team
- No need to purchase and maintain application infrastructure
- Software upgrades, patches, and data storage are managed by the provider
- Specialized support from a team focused on the application and its operating environment
- Faster and easier scalability as storage, users, and processing requirements increase
Installation and Maintenance
Because there is no need to install software locally or maintain the supporting infrastructure, SaaS typically requires few technical resources from the customer. The provider handles updates, patches, server operations, and routine maintenance, allowing customers to begin using the system more quickly.
End-to-End Support
With on-premise software, the application provider may support the software but not the servers, storage, networking, operating system, or other local resources. When a problem involves several components, identifying responsibility can be difficult. With SaaS, the provider manages the complete operating environment and can usually investigate issues without requiring the customer to coordinate several vendors.
Scalability
Cloud-based tools are generally easier and faster to scale. A SaaS provider can allocate additional storage, processing power, or other resources without the customer purchasing and installing new hardware. Scaling an on-premise environment may require budget approval, hardware procurement, delivery, installation, and configuration.
Benefits of On-Premise Software
On-premise deployment provides greater direct control over the infrastructure, storage environment, network, security policies, and physical location of company data.
- Greater control over regulatory compliance requirements
- Faster local access where internet connectivity is slow or unreliable
- Potentially lower storage costs for very large data collections
- Direct control over highly sensitive or confidential information
Regulatory Compliance
Organizations operating under regulatory requirements, such as HIPAA in the healthcare industry, may prefer an on-premise environment. It allows the organization to implement its own security controls and maintain direct oversight of where information is stored. However, many SaaS providers also offer relevant certifications, compliance controls, and regional data-hosting options.
Local Network Performance
Organizations in regions with slow or unreliable internet connections may experience better performance from locally installed software. Users can access the application through the internal network without relying on an external internet connection for every interaction.
Potentially Lower Storage Costs
Cloud storage costs can become significant when an organization manages many terabytes of data. If suitable infrastructure and technical staff are already available, local storage may be more economical at a very large scale.
Sensitive Data
Organizations working with sensitive images, confidential records, intellectual property, or highly personal data may prefer to keep everything within infrastructure they control. An on-premise system can provide greater certainty about the physical location of data and who has administrative access to it.
How to Choose the Best Option
Consider the following factors when deciding between SaaS and on-premise software.
| 1 | Maintenance and support Determine whether you already have an internal IT team or managed technology provider capable of operating the required servers, storage, networking, backups, and application environment. SaaS avoids the need to build this capability internally. |
| 2 | Scalability Consider whether your number of users, storage requirements, or processing needs are likely to grow or fluctuate. SaaS is usually easier to scale without purchasing infrastructure that may remain unused during slower periods. |
| SaaS usually provides greater convenience and faster scalability, while on-premise deployment provides greater infrastructure control. | |
| 3 | Backup and storage Organizations working with many terabytes of data should compare the complete cost of cloud storage with the cost of purchasing, operating, backing up, and replacing local storage hardware. |
| 4 | Regulatory compliance Review any requirements involving data residency, access controls, encryption, audit logs, retention policies, and industry-specific standards. An on-premise system may offer more control, while a suitable SaaS provider may already offer the required protections. |
| 5 | Company direction Consult your IT and security teams to determine whether your organization has an established preference or policy for cloud, private cloud, dedicated hosting, or on-premise systems. |
The Decision Is Not Always Permanent
Some organizations hesitate because they believe choosing SaaS or on-premise software will permanently lock them into that deployment model.
With DBGallery, moving between SaaS and on-premise environments is relatively straightforward. The process primarily involves backing up and restoring the database and transferring the relevant asset folders.
This gives organizations the flexibility to change deployment models as their infrastructure, policies, or business requirements evolve.
Choose Cloud or On-Premise Digital Asset Management
DBGallery is available as a fully managed SaaS platform or as an on-premise installation within your organization’s own infrastructure. Pricing is available for both on our Plans and Pricing page.
Explore DBGallery CostsQ&A
What is the main difference between SaaS and on-premise software?
SaaS is operated by the software provider and accessed through the internet. On-premise software is installed within infrastructure operated by the customer or its technology partner.
Is SaaS always less expensive?
Not necessarily. SaaS avoids many upfront infrastructure and staffing costs, but organizations with very large storage requirements and existing technical resources may find an on-premise environment more economical.
Is on-premise software more secure?
It provides more direct control, but security depends on how well the environment is managed. A professionally operated SaaS provider may have stronger security expertise, monitoring, backups, and redundancy than an organization can provide internally.
Does DBGallery support both deployment models?
Yes. DBGallery can be provided as a managed SaaS platform or installed on-premise, allowing organizations to choose the model that best fits their security, infrastructure, storage, and operational requirements.
“DBGallery is a great solution to our problem of storing all our images in one place, finding them quickly when needed, and sharing them.”
— Kathy Santos, Town of Lexington, Massachusetts
Not sure whether SaaS or on-premise digital asset management is right for your organization?