Let me summarize some of the points made by
Subraya Mallya in the blog Prudent Cloud as to why a SaaS
solution is preferable to an on-premise solution from a
cost-benefit perspective:
- Reduced Upfront Investment. A SaaS application
does not require the upfront investment in IT infrastructure that
is required for an on-premise solution.
- On-Demand Elasticity. With an on-premise
deployment, "You buy it - You keep it." A SaaS application is easy
to scale up or down and your costs scale up or down
accordingly.
- Anytime/Anywhere Access. To access a SaaS
solution, you simply need a browser and an Internet
connection.
- Frequent Product Updates. One of the key
benefits of SaaS is frequent product updates and enhancements.
Many customers and prospects tell me they prefer on-premise over
SaaS. Given the reasonable arguments above, one might ask, "Why?"
Here are several arguments in favor of an on-premise solution:
- Economies of Scale. A SaaS solution can become
costly versus an on-premise solution if you are sending large
numbers of messages daily. This is much like buying pizza by the
slice rather than simply buying the whole pizza.
- Security and Control. Many clients prefer to
have their data and applications maintained and securely accessible
onsite.
- Rapid ROI. Some on-premise solutions have an
almost immediate Return on Investment (ROI). For example, an
InphoniteVoice on-premise edition often has an ROI of 30 days or
less. Once the system has paid for itself, additional messages such
as follow-up calls, past-due reminders, or a second reminder call
per appointment can be made at virtually no additional cost.
Inphonite offers both SaaS and on-premise versions of
InphoniteVoice. In this debate, Inphonite is agnostic. Other than
some necessary differences such as credit card processing and
system administration, InphoniteVoice SaaS offers the same feature
set as the on-premise, enterprise edition of InphoniteVoice.
Rather than takes sides in these Cola Wars, let me propose several
scenarios where it makes sense for a client to utilize both the
SaaS AND an on-premise edition of InphoniteVoice:
- Emergency Notification. Consider a hospital IT
Department that is already making appointment reminder calls via an
on-premise edition of InphoniteVoice. Let's say they want the
ability to send Emergency or Mass Notifications to their 2,500
employees. Assuming the system can place 45 calls per channel per
hour, it would require 56 channels (phone lines) to call all
employees within sixty minutes. Such bandwidth is very expensive
and would remain unused most of the time. Once configured, the
incremental cost to deliver 2,500 messages using InphoniteVoice
SaaS is only $350.
- Redundancy. As a backup to your InphoniteVoice
on-premise solution, InphoniteVoice SaaS, at a cost of pennies per
message, can ensure that your messages are delivered every
day.
- Purchase Assurance Plan. A customer may prefer
to thoroughly test InphoniteVoice and implement the SaaS version
before purchasing an on-premise edition. To facilitate this,
Inphonite will apply 100% of the InphoniteVoice SaaS implementation
fee toward the purchase price of an On-Premise edition for up to 12
months after purchase. We will also implement the migration at no
additional charge.
Whether you prefer SaaS, On-Premise, or even a combination of
the two, there is an InphoniteVoice
solution available to meet your needs.
Mayonnaise vs. Miracle Whip? Twizzlers vs. Red Vines? If you would
like to weigh in on the SaaS vs. On-Premise debate, please comment
below.