Key Considerations When Migrating From On-Premise Software to SaaS

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Many individuals and organizations are making the transition from on-premise Software to SaaS. On-premise software, which requires on-site installation, has been the primary software model for a while. However, Software as a Service (SaaS) has introduced a software model not locally hosted on hardware. Instead, it is hosted online, and users can access it via the Internet.

The bottom line is that the two software models differ, each with their advantages and limitations. For example, on-premise software only requires a one-time purchase. However, users are left responsible for maintaining, updating, and ensuring the software’s security. Meanwhile, with SaaS apps, maintenance, security, and updates are handled by the SaaS provider, so users typically have to pay a continuous subscription fee.

Weighing the Pros and Cons

Pros of SaaS:

  • Because SaaS is online, it’s easier to access.
  • The SaaS subscription model spreads out expenses.
  • SaaS updates are handled automatically.


  • You can’t access and use SaaS solutions without a reliable internet connection. 
  • The initial cost is relatively low, but payment is continuous.
  • Off-site data storage at risk of cyber attacks.

Pros of On-Premise Software:

  • Users fully control their data and infrastructure.
  • Unlike SaaS, it doesn’t require continuous payment.
  • Physical control allows for enhanced, tailored security measures.


  • The initial cost covering hardware, licenses, and setup is significant.
  • Users handle updates and maintenance comprehensively.
  • Access is usually limited to on-site locations.


Factors to Consider

There are certain factors you must consider before switching between software models. They include:

  • Budget Considerations: SaaS’s spread-out subscription model favors operational expenses over capital expenditures. In contrast, on-premise payment structures suit organizations that can afford high upfront costs and prefer to manage their expenses over time.

  • Data Security Requirements: Top SaaS providers offer strong security, but storing data off-site can be concerning. It’s essential to check their security certifications and compliance. On-premise solutions give more control over data security but require the organization to handle and invest in it, which can be a big responsibility.

  • Scalability Needs: SaaS is straightforward to scale because of its large server capacity. However, you must buy more hardware and licenses to scale on-premise software.
  • Internal IT Capabilities: SaaS providers handle maintenance, updates, and security of SaaS solutions, which free up time for more strategic tasks. In contrast, on-premise solutions need a skilled IT team to manage everything, which can be demanding.

Another factor that is particularly peculiar to SaaS is that monitoring is required. Regularly monitoring SaaS activity is essential to identify and eliminate unused resources, preventing wasteful spending. 

SaaS management platforms like Josys can help IT managers effectively monitor Software and hardware assets. This ensures businesses have a firm grip on their SaaS setups, ensuring IT activities align with company goals and budgeting.


Making an Informed Decision

Here are some essential tips for making a well-informed choice:

  • Identify your peculiar needs and choose to meet them.
  • Review your current IT setup to see if it can work with new software
  • Consider the expenses involved; ensure they fit your budget.
  • Before deciding on software, consider how secure, dependable, and compliant it is.
  • Ensure the software supports your organization’s long-term objectives.
  • Choose software that improves efficiency without significant process changes.


This article covered the basics, advantages and disadvantages, and how each software model affects budget, growth, and security. Overall, the ultimate goal as a business is to choose a software model that fits your budget, contributes to your goals, and enhances efficiency.

If any part of your software solution is SaaS, you need a comprehensive SaaS management platform like Josys. Contact us for a demo to see how Josys can streamline your IT operations and help you make the most of your software investments.

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