Hosted Software Versus On Premise Solutions
More and more companies and individuals are adopting on demand hosted software applications to fill their needs. Application service providers, or software as a service companies as they are also known, have made strong inroads into servicing clients in many industries. Hosted software solutions exist to help track your sales, manage your payroll, aid with property management, communicate with customers, manage inventory and perform just about any function for which a company would need software.
One of the many reasons adopters of hosted software cite for choosing a web based program is cost of ownership versus a traditional on premise solutions. Just what kind of savings can an individual or company expect to realize by opting for hosted software from an established SaaS provider?
For starters, with hosted software extensive IT resources are not required. All that is needed is a computer, Internet connectivity and a web browser. You probably already have all you need to begin using a hosted application. Support and maintenance of individual computers is probably already accounted for and resources are likely already in place. With traditional software, new hardware, IT staff and hardware or software upgrades may be required. Maintenance and support of the infrastructure required to run the software is the purchaser’s responsibility. Application upgrades with hosted software are normally automatic and invisible to users. Upgrades with on premise solutions can be numerous, costly and painful.
With hosted software, dedicated support people are usually not required to be on staff to troubleshoot the application if problems arise. With an on premise solution, several or all of your IT people may be involved in the implementation and ongoing support of the application. You may need to hire or train people to serve in inhouse maintenance roles.
Data management presents another challenge for individuals, small to mid size businesses and even large enterprises. Disaster recovery is the responsibility of the user with on premise software. Hosted software companies on the other hand provide routine backups. There is no need to maintain databases or storage facilities for your application data.
The total cost of ownership with hosted software can be significantly less than non-hosted solutions. All you need is an Internet connection and a Web browser, which means cost savings on hardware and IT staff. Ongoing maintenance costs are also lower due to the inclusion of disaster recovery and security management with your subscription and upgrades or other necessary changes being provided by the application service provider. These potential cost savings make hosted software worth considering the next time you find yourself in need of a software solution.
