Difference Between On Premise and SaaS App Development

Posted By : Anmol Kalra | 09-Nov-2021


Today the companies that offer computing technologies know the market need and act accordingly with productivity-driven solutions with minimal operating costs.


  • SaaS is an application solution that is hosted and maintained by a third party.
  • On-premise is a feasible solution that is locally hosted on your system and supported by some third party for issue handling.


SaaS vs On premise AR VR


Key Differences between SaaS and On-Premise

The configuration option is unlimited with today’s computing environment, which has two fundamental structures, i.e., on-premise and SaaS application development (Cloud). Each has its unique benefits and drawbacks, and in some cases, one is preferred over others. Let us see some crucial differences between the two –

  • The fundamental yet most crucial difference which clearly defines a boundary is how the hosting is done. In the SaaS app development, the application is hosted on the vendors’ server and accessed via web browsers. In contrast, in the case of on-premise, the application gets installed locally on the company or user’s computer and servers.


  • Consider Your Budget: The pricing is again a deciding factor and clearly differentiates among the two; for a SaaS, the prices are incurred on a subscription basis and levied monthly, quarterly, half-yearly, or yearly, whereas the on-premise is generally priced under a one-time perpetual fee. This fee depends upon the size of the organization and the number of units getting installed. So, we can say that SaaS is OPEX and on-premise is CAPEX (in terms of finance).


  • Freedom of Operation: It means how conveniently a user can make adjustments in the application they are using. The on-premise application has an advantage in this scenario over the SaaS. Imagine a growing business that does not have a planned working structure that can get many benefits from On-premise as they can modify changes as and when needed, but this is not possible for SaaS as it is not in-house.


  • Support and Maintenance: Talking of these criteria, the SaaS would be any user’s first preference. If you are an on-premise user, then you should have an IT department that can fix any issue related to that software application. In contrast, in SaaS, it is the complete responsibility of the service provider to handle any fluctuation from the application's expected behavior.


  • 24*7 access: Immediate and anytime access is also a deciding factor; with SaaS application, a user can have the advantage to use it anytime and anywhere, all he needs is to have a Wi-Fi and web browser. Whereas in the case of on-premise application, the access is only possible on the company grounds and eliminates the possibility of access from the house. If you are planning to use any one of the implementations, then this point is worth considering.


  • Need for Software Testing: An on-premise application demands regular testing for proper functioning and to avoid any work delay and hindrance. This, in turn, incurs a need for a tester whereas for a SaaS environment this need is eliminated as it is already completed so there is no downtime to fulfill the testing requirement.

Also Read:- How Successful Cloud Migration Can Assist Your Businesses

Talking of disaster and recovery, we know that disaster can happen anytime, the organizations that have a comprehensive recovery strategy will think to prosper. For on-premise users, backup is a significant challenge as they have to believe. Otherwise, the companies can lose their data, not surprisingly, the in-house systems are relatively expensive and require additional investments, security, and licensing. In comparison, SaaS offers a comprehensive advantage in this segment to its users. The services SaaS offers for data backup can vary from mere data storage to full failover, where the complete transfer of the functions is possible.


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We, Oodles Technologies, deliver a tight migration with live capture and incremental data sync, minimizing downtime and ensuring no lock-in worries reducing time and investment cost. To discuss your requirements, drop us a line!


About Author

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Anmol Kalra

His forte lies in his ability to create content that engages and persuades. Being an avid technology enthusiast, he always looks forward to working on new tools & technologies. Also, You can find him on a volleyball court on the weekends.

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