Pros and cons of both options

SaaS-cloud vs on-premise

The longer the more business applications are available online via the cloud.
There are clear advantages, but are cloud solutions always better?
Below are the advantages and disadvantages of the two options.

Go to the battle of SaaS vs On-premise Go to price comparison between SaaS and On-premise

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Releasemanagement

To implement customer requests, expand functions, improve stability or close security gaps, good software must be constantly updated.

Installing the updates means extra work. Installing updates and bug fixes can demand significant efforts, especially in larger companies.

Die Aktualisierungen zu installieren, bedeutet zusätzliche Arbeit. Gerade in grösseren Unternehmen kann das Einspielen von Updates und Bugfixes ein erheblicher Aufwand darstellen.

Security and privacy

Regardless of whether you choose a cloud solution or an on-premise software, data security should be of great importance.

Security concerns remain the number one objection to using cloud solutions. However, cloud services have been constantly evolving and security these days is usually sufficient for almost all companies.

Institutions with particularly sensitive information like banks or government agencies usually rely on on-premise solutions. As long as they are professionally planned and configured by experts, they can meet the high security requirements.

License management

In the corporate environment, people often work with licenses. Software solutions cannot be used for an infinite number of workplaces.

Cloud software is easily scalable, it is usually possible to order additional or fewer licenses at short notice.

On-premise solutions are poorly scalable, licenses are usually more expensive and have to be purchased for a long term.

Test instances

Processes, updates and data can be tested and introduced independently of productive operation using test environments.

With cloud solutions, several test instances (up to 3 sandboxes for Microsoft) can be created with a push of a button.

With on-premise solutions, everything is in your own hands, but setting up test environments usually involves more effort.

Ecosystem

If the company and the requirements grow, more software solutions are often added, which help to tackle the challenges and should be coordinated.

Large providers like Microsoft have huge ecosystems of third-party apps for their cloud solutions. The apps can be flexibly added to the existing solution and are fully compatible with Microsoft solutions like Microsoft Teams, Power Automate, Power BI, Microsoft Office, etc.

The ecosystem for on-premise solutions is by far not as big as for cloud solutions. Extensions or interfaces often have to be developed for a customer specifically, which is expensive and involves additional work.

Administration

Whether in the cloud or on a local server, the solutions must be accordingly configurable.

The status of the working environment can be easily viewed via web interfaces like Microsoft Admin Center, and settings can be changed with just a few clicks.

With an on-premise solution, everything is under your control. The internal IT department can take care of needs directly, but it often involves extra work.

Access

From where do you use the software? What happens if the Internet connection fails? Pros and cons of both sides.

The Modern Workplace approach is supported because employees have access from anywhere using a wide variety of end devices like smartphones or tablets. However, if the Internet connection is unstable or lost, you cannot keep working with cloud solutions.

If there are network problems and the connection to the Internet is broken, with on-premise solutions employees can still access the data. However, employees are often tied to their workplaces and access from on the go or from the home office is impossible.

And the winner is...

to be determined

SaaS-Cloud

On-Premise

Simple price comparison between onPrem and SaaS

Investment calculator

Would you like to compare the cost of on-premise and cloud solutions?
Based on many years of our experience, we have created an investment calculator to help you.
We used known Microsoft prices and our software solutions for it.

Existing customer

Existing licenses

New customer

Missing licenses

Employees

Licenses

Years

Information about the prices used in the calculator	Number	Unit	Price	onPrem	SaaS
ERP system licenses				CHF 0.00	CHF 0.00
ERP system maintenance	18%	per year		CHF 0.00
Payroll licenses				CHF 0.00	CHF 0.00
Payroll maintenance	20%	per year		CHF 0.00

Updates twice a year	12	Hours	CHF 220.00	CHF 0.00
Infrastructure server (onPrem)		per month	CHF 250.00	CHF 0.00
Infrastructure support	12	Hours	CHF 80.00	CHF 0.00

Total cost				CHF 0.00	CHF 0.00

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Where do we go from here? On-premise or SaaS cloud?

Conclusion

In our opinion, it makes sense in many cases to rely on the more flexible and scalable and also financially more attractive cloud solution. Depending on the requirements, business model and industry, it may well be possible to continue pursuing the on-premise approach. Do you have any questions or do you need assistance in making a decision? Let’s find out together what solutions best suit your company and your requirements.

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