If you're ready to upgrade your logistics processes, you have some big decisions. One of the most important is selecting the right software—and one of your first choices is whether you'll run with a cloud-based Software as a Service (SaaS) option, or use an on-premise solution.
Your current software is probably on-premise, so you may be tempted to stick with what you’re familiar with. The question is, can on-premise software effectively meet the changing needs of your business, or does a cloud-based SaaS solution open up more opportunities?
Here we explore both options.
If you opt for on-premise software, the technology will need to be installed, maintained, and operated by your IT team. This approach requires you to buy servers, provide space and cooling for servers, potentially hire IT consultants if your current team lacks the required expertise, and purchase software licenses typically via a recurring fee schedule.
The most notable advantage of an on-premise approach is that you’ll have more control over your servers and platform. Hosting your servers also typically reduces cybersecurity concerns. Additionally, if your business experiences an internet outage, your team can still access its organizational data.
On-premise software’s most glaring weakness is cost. Deploying the hardware to support your on-premise solution requires a significant upfront investment in hardware, labor, and management. It can be complicated and time-consuming and reduces your IT team's ability to look after other business areas. The combination of a longer deployment timetable and higher costs means you’ll experience a diminished ROI.
It can also be challenging to house required data backups, connectivity, and support for those with multiple warehouses. Maintaining your platform is far more costly than SaaS, too, as you’re responsible for buying new hardware, licenses, and software for the entire software lifecycle.
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As of 2021, 99% of organizations used at least one or more SaaS solutions.
SaaS solutions are everywhere in business, and for good reason.
SaaS applications consistently outperform on-premise alternatives on nearly every relevant metric.
Specifically, a SaaS solution:
If you go the on-premise route and consume all of your IT resources, you'll need to invest in new servers and other hardware. That means you'll incur tens of thousands in additional expenses.
When you use SaaS solutions, your provider will allocate additional cloud resources to your company on an as-needed basis. If your consumption climbs past a certain threshold, you'll simply need to upgrade your subscription plan.
Under the SaaS delivery model, your provider is responsible for maintaining servers, software, and the overall network. All your team has to do is maintain your on-site equipment, such as your routers, internet infrastructure, and devices.
Since most maintenance tasks fall on your SaaS provider, your IT expenses are minimal. You'll also have the support of an expert third-party IT team. As such, you'll likely experience less downtime and fewer outages.
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While there are some implementation costs with deploying a SaaS solution, they pale in comparison to the expenses associated with on-premise software. Implementing SaaS technology is not only cheaper but faster as well.
By decreasing deployment costs and expediting the process, you can boost your ROI and condense your time to value, meaning your new SaaS software will start making a measurable business impact much sooner.
Under the on-premise model, your in-house IT team is responsible for pushing any updates or installing patches. If they fall behind, your valuable organizational data could be left vulnerable to attacks.
Conversely, the SaaS model reduces the cybersecurity burden on your IT team. While you’re still responsible for protecting your network and devices, the developer installs all software updates and remedies vulnerabilities in their product.
SaaS solutions are highly scalable and—if you select a solid provider—are continuously improved upon. As a result, SaaS software can evolve as the needs of your business grow.
As you start your search for a SaaS solution for your organization, make sure you carefully vet each partner. Find a provider that assists with deployment and implementation, and ensure that their solution provides all the tools your business needs to streamline logistics management.
By carefully evaluating each option, you'll find the ideal SaaS platform to support the growth of your organization.
Need more tips on how to upgrade your logistics? Dive into our free guide A Guide to Digitizing Logistical Supply Chains and discover benefits and how-to's of digitizing your warehouse, ordering, tracking, and analysis processes. Compete better in today's fast deliveries world!