On-Premise vs. SaaS vs. PaaS vs. IaaS: Which Solution Offers the Most Cost Savings?

Maximizing Cost Savings: On-Premise vs. SaaS vs. PaaS vs. IaaS
Abhishek Founder & CFO cisin.com
In the world of custom software development, our currency is not just in code, but in the commitment to craft solutions that transcend expectations. We believe that financial success is not measured solely in profits, but in the value we bring to our clients through innovation, reliability, and a relentless pursuit of excellence.


Contact us anytime to know moreAbhishek P., Founder & CFO CISIN

 

If you are willing to switch your Enterprise mobility solutions to cloud it is extremely important to understand the differences and potential advantages of various services in the process.

Maintaining the On-premises software and hardware prerequisites can be a tedious process for various businesses, hence cloud computing is the safest rescue. Basically it covers infrastructure as a service, software as a service, platform as a service model.

All these models have their specific features and effective range, hence you have to be aware of your organization’s requirements and the available solutions.

Even if you require a cloud-based software for storing your data it is essential to have a smooth platform that can allow you to create various customizations and derive control over the entire infrastructure (without maintaining it physically). It is essential to migrate to the cloud to keep pace with the ever-changing technology because it is indeed the future of most of the businesses.


On-premises technology

On-premises technology

 

On-promises refer to the software technology that has physical confines for the enterprises and the data is stored within the organization itself.

This is quite opposite to the hosted servers or cloud computing. The software and hardware are installed and run within the premises of the company and the staff has physical access to the stored data.

The staff of the company can also manage the security in computing of the infrastructure and the stored data. Compromises refer to a traditional method of storing the company’s data and it also requires a software license for the service deployed with the software.

On-premises refer to the data storage program in which the solutions are installed in the computer system through USB drive or CD devices.

Hence, it limits the employees to access data organization and it doesn't follow the approach of 'anytime anywhere'.

The data stored in on-premises technology can be operated within the data center only and it uses computer and hardware rather than cloud services.

This type of model is popular among the consumer application or enterprises that require a license for servers or devices. In addition to it, the vendors are not responsible for security or management but they only offer sales and technical support in the enterprise.

As compared to the cloud, on-premises solutions are extremely expensive and at every step, they require a huge investment. Being a traditional and outdated model, on-premises is behind cloud computing services for a number of reasons including security, data management, etc.


How to choose the one that suits you the most?

How to choose the one that suits you the most?

 

In order to determine the model that suits you the most, it is important to consider the embarking of the initiative as- 'the business requirement should have the potential to drive technology purchase but not vice versa'.

It is also seen that various organizations go for hybrid implementation because of in-house security concerns. But it is important to determine the business objective first and then weigh the available options and feasibility.

There are other considerations as well-

  1. Migrating legacy applications in cloud environments require an analytical approach and customized programs that suit existing architectures.

    This helps to integrate cloud-based solutions.

  2. Few applications will not be suitable for the cloud implementation and they require expensive investment
  3. Latest SaaS product development services have to be built in the cloud medium for optimally using the environment
  4. The organizational management initiatives require resource training creating operation model for cloud-based acquisition

The cloud-based solutions are designed to free organizations from additional costs and assists in managerial tasks.

It is also responsible to cut down the cost of purchasing equipment or hosting the solutions on-premises. When these cloud computing models are deployed accurately, they offer ultimate flexibility and scalability to the enterprises.

The overall advantage of cloud computing services is that they have the ability to save time and development efforts without investing a lot into the instances. IaaS and PaaS are free of any limitations and their ability to create extreme customizing options. However, SaaS application development makes the customization workflow difficult.


Let us learn about IaaS, PaaS, and SaaS in detail along with their features and utility

Let us learn about IaaS, PaaS, and SaaS in detail along with their features and utility

 

In the recent decade, technology has evolved at an exponential rate which has resulted in the dipping of the prices of computer and server hardware and promoted the adoption of the latest out computing solutions.

IaaS, PaaS, and SaaS are the cloud computing models that have emerged mostly, as a result, to harness computing efficiencies in the server network. Their intertwined functionality often leads to confusion, so follow through the below-mentioned description and learn about each one of them in detail.


INFRASTRUCTURE AS A SERVICE

INFRASTRUCTURE AS A SERVICE

 

IaaS or Infrastructure as a Service refers to a cloud computing solution where the service provider enables users to access computing resources easily.

This is done through server networking and storage where the platform uses its own Software development services and applications in the infrastructure of the service provider. It is the virtual assistance of computing resources with the help of hardware and networking. It operates through the traditional cloud infrastructure where the service providers host multiple infrastructures including the hardware, storage, networking, etc.


The key features of IaaS are as follows:

  1. Users only have to pay for on-demand IaaS rather than purchasing the hardware systems
  2. The infrastructure requirements are scalable depending upon the processing and storage requirement of the Enterprise
  3. It also saves the additional cost of purchasing or maintaining the hardware
  4. It is fail-safe because the data is stored on the cloud and it also enables the virtualization of all the administrative processes (means that the administrator will save a lot of time for other works as well?


IaaS computing services are beneficial for a number of reasons and some of them are mentioned below:

  1. COST EFFECTIVITY- This solution is paid based upon the per seating model, however, you can negotiate on an hourly, weekly, or monthly basis.

    Through this method, the upfront costs can be evaded for on-premise software and hardware requirements. IaaS has the potential to utilize the infrastructure for the organizations that could be extremely difficult without its indulgence.

  2. TIERED PRICE MODEL- It also offers tiered pricing models with easy scaling to attract a number of customers having different requirements.
  3. PROACTIVE SECURITY- As it is hosted on the cloud, users find it entirely location independent and redundancy offered by IaaS ensures that the infrastructure is secured from any threat.

PLATFORM AS A SERVICE

PLATFORM AS A SERVICE

 

PaaS or platform-as-a-service is a cloud computing model that enables the users to develop, organize, or deliver the applications in the cloud environment.

Along with the cloud applications it also allows users to utilize prebuilt tools in order to customize and test their own products and applications. It is a category of cloud services that help Software development services providers to easily manage and develop their applications without having any complex association with the application infrastructure.

The key features of PaaS are as follows-

  1. If the team works remotely it maintains collaboration for the Software development services
  2. PaaS offers a platform having the best tools to develop or host the applications in a similar involvement
  3. It also allowed the organizations to emphasize various development process without investing a lot in the underlying infrastructure
  4. It offers managerial security, server software, operating system, and backup options

The services under the category include hardware and software which is hosted by the service provider. It also eliminates the requirement to install the in-house hardware.

Some of the outstanding benefits are:

  1. MINIMAL SETUP COST- The PaaS Cloud computing model is gaining popularity all across the industry as it efficiently reduces the setup cost or any maintenance costs.

    It also eliminates the hurdle of entry which means that users can access the resources easily which in the case would be out of their reach because of budget restrictions.

  1. RELIABLE FOR CODERS- PaaS systems are coder-friendly because they have adequate control over the custom configuration which preserves the ultimate objective of development work.

    The providers can handle application execution or underline system functions with absolute convenience.

    It offers the usability of individual development tools, resources, and frameworks that are configured for the specific platform.

Read the blog- 10 Predictions For The Next Big Thing In SaaS Software Development

  1. MULTI-PLATFORM DEVELOPMENT- It has become crucial at present to develop applications for various platforms.

    PaaS vendors in the same segment have made it easy to develop applications for multiple devices and Systems.

    We can say that it is a quick and inexpensive form to steal the application.

  1. EASY SCALING- This technology is extremely scalable that generates substantial cost-effective ATI for the developers and allows them to increase the profits and margins of their actions quickly.

    The scalable nature of these models also magnifies the project scope and expands them in conjunction with the requirements.


SOFTWARE AS A SERVICE

SOFTWARE AS A SERVICE

 

SaaS or software-as-a-service refers to a cloud computing solution that allows users to access the cloud-based software provided by the vendor.

Also, they do not have to install the applications on their own devices rather the applications are stored on a remote cloud network. These applications can easily be accessed through API or web and users can Store or manage the data with smooth collaboration on all the projects easily.

Basically it is a licensing model that has gained renowned traction across the applications. It also permits the users to access proprietary Enterprise mobility Management or software services based upon a subscription basis model.

It is an extremely cost-effective solution for on-premise software management for installation. In the year 2016 worldwide revenue of SaaS was around $79 billion which is speculated to cross $346 billion in 2027.


Key features of SaaS Cloud computing solutions are as follows-

  1. The vendors allow users to excess variety of software and applications with the help of subscription model
  2. There is no frequent requirement to manage or update the software (your service provider will be responsive to manage or install the upgrade)
  3. Even if the equipment failure occurs then data remains secure because of the cloud storage
  4. The use of SaaS product development resources can be scaled up easily depending upon the service requirements
  5. All the applications of SaaS can be accessed from any internet-enabled device

The SaaS computing model can provide anything from property tax management, payroll and accounting, construction planning software, human resource management, and a lot more.


Some of its incredible advantages include:

  1. EASE OF USABILITY- Without adequate knowledge, curve technology can be considered as a real mess.

    Hence expert assistance for the setup on maintenance is always required and this issue is addressed by SaaS which minimizes the application downtime and delays.

    SaaS computing models also have limited learning curves that can easily drive user engagement along with increasing the productivity of the platform.

  1. UPGRADING AUTOMATION- Without SaaS involvement great and automation is extremely difficult which also required labor hours to get the work done.

    SaaS upgrades the solutions automatically with the help of a centrally hosted application server.

    This makes the process smooth and uninterrupted to promote user experience and productivity of the platform.

    It also increases the security concern with the help of automated roll-out of updates.

  1. SCALABLE SUBSCRIPTION- SaaS models permit the users to scale up or down their engagement in order to align with their business requirements accordingly.

    It also has a variety of subscription packages to make sure the platform flexibility.

    In addition to it, SaaS applications can be accessed anywhere, across all platforms with an active internet connection.


What is the major difference between cloud services and on-premises?

What is the major difference between cloud services and on-premises?

 


Let us have a quick summary-

  1. IAAS- Infrastructure As A Service is a cloud-based service that has a pay-as-you-go model for its solutions including storage, networking, and visualization.
  2. PAAS- Platform As A Service has hardware and software solutions available over the internet
  3. SAAS- Software As A Service is available through the third party over the internet
  4. ON-PREMISES- On-premises include the software installed in the same building or enterprise.

Cloud computing refers to a practice of using multiple network servers that can potentially host, manage, and process the data in an online medium via the cloud.


  1. IaaS MODEL

IaaS cloud solutions strengthen the Enterprise mobility solutions of the enterprises at the greatest power and control over the hardware and software resources.

IaaS also make sure that the technology remains secure and devoid of any outages.


EXAMPLES

EXAMPLES

 

  1. AMAZON WEB SERVICES- AMAZON WEB SERVICES is a functional Amazon and it is used for a number of on-demand cloud computing services that can be purchased through a recurring subscription plan.

    AWS helps the enterprises to store and deliver the content.

  2. MICROSOFT AZURE- It is a cloud computing product that allows enterprises to create, test, or manage the applications through the network of Microsoft data servers.

Read the blog- What Is The Best Platform To Build a SaaS Solution?


  1. PaaS MODEL

The PaaS model allows other developers to create custom applications without dealing with server storage and management.

The most significant utility of this model is the control offered by its administrators over the software applications.


EXAMPLES

EXAMPLES

 

  1. GOOGLE APP ENGINE- Google app engine enables the developers to host web applications in any cloud-based data server which is also managed by Google.
  2. OPENSHIFT- Openshift refers to the on-premises containerization software.

  1. SaaS MODEL

SaaS product development is one of the most common cloud computing services that help companies and develop their business.

It is also easy to use and manage and its scale can also be adjusted as per the requirements. The best advantage is that there is no requirement to download or install the solutions on any device.


EXAMPLES

EXAMPLES

 

  1. DROPBOX- Dropbox is a file-sharing tool that enables the users of a group or for the organization to easily upload and download multiple files.
  1. JIRA- JIRA is a project management software that can be purchased on a subscription basis.

The difference between IaaS, PaaS, and SaaS application development can be considered under the common roof of cloud computing.

The difference lies in their building, storing, and creating the data over the cloud medium. Every cloud computing service model is different in terms of its features and assistance. They vary on a number of other fronts as well out of which you have to choose the model wisely if you are considering switching on the cloud.


THE BOTTOM LINE

THE BOTTOM LINE

 

The popularity of cloud computing services is increasing every passing day which is significant during the requirement of on-premise hosting.

The cloud computing models offer various choices to users over on-premises. As the level of technical expertise decreases you can go for the order as-

On Premises> IaaS> PaAS> Saas

  1. IaaS provides maximum flexibility when it comes to hosting the custom-built applications along with providing a reliable data center for the storage
  2. PaaS is mostly built upon the IaaS platform in order to eliminate the requirement of system administration and it also allows the developers to focus on app development rather than infrastructure management
  3. SaaS provides ready to use and out of the box SaaS application development solutions to the users that meet the business objectives without any hurdle.