SaaS Applications Vs On-Premise Software

Software-as-a-service (SaaS) management is a growing concern among IT teams, but is SaaS right for you? Let's consider the merits and risks of leveraging cloud applications.

Software-as-a-service (SaaS) management is a reaction to something that's already happening. The adoption of SaaS applications has steadily increased since 2018 with over the overall adoption rate today standing at 71%. 

The problem is, ease of access to SaaS means that employees can begin using SaaS applications without involving IT. As a result, IT can have a very hard time keeping track of what the business using, leading to cost, compliance, and security issues. 

IT leaders thus face a choice: either embrace employee choices regarding the applications they use and work to enforce cost, compliance, and security controls, or forbid SaaS and insist that employees only use applications installed on their computers or or installed in the organization's data centers.

A lot of the advice out there would have you think this is a no-brainer, as if the adoption of cloud-based applications is a foregone conclusion. However, you need to make the right strategic choice for your business, even if that means keeping everything on-premise.

How can you tell what SaaS applications are in use within your organization and whether they're right for you? Our platform can uncover SaaS applications across your organization, track their usage, and help you right-size and manage SaaS contracts.

LeanIX allows you to situate SaaS in your broader application landscape. This allows you to assess the value delivered by SaaS and choose the right strategy for you going forward.

LeanIX EAM also empowers you to create a roadmap for your target application portfolio and manage progress towards it..

To find out more about leveraging LeanIX to choose the right path for your SaaS usage, download the white paper below. Read on here to learn more about the pros and cons of SaaS applications.

Advantages Of Staying On-Premise

Software-as-a-service (SaaS) management as a practice doesn't require that all your applications are cloud-based. It can provide plenty of value even if you are only managing a handful of SaaS applications and keeping your core systems on-premise.

In fact, commentators like TechCrunch and Computer Weekly have been documenting a trend of companies bringing solutions from the cloud back on premise. This is often part of a 'hybrid' cloud approach involving a mix of SaaS and on-premise applications.

Here are three key reasons why companies are stepping back from the cloud in favor of a hybrid approach:

1 Data security

It's impossible to ignore the 'elephant in the room': no matter how secure your cloud applications are, private, on-premise servers are still more secure by definition. This is particularly important for regulated industries.

2 Customization

Your server, your way. When you keep your applications on-premise, you can set them up however you want, and ensure they're implemented and maintained in a compliant way.

3 Independence

If your internet access goes out, you can still work with your on-premise data. When that data is stored in the cloud, there's always a terrifying possibility that your organization could be cut off from its vital data.

Advantages Of SaaS Applications

Software-as-a-service (SaaS) management can address some of the issues that make on-premise deployment attractive. Consider security, for example.

SaaS applications frequently fall into the category of 'shadow IT.' Why? Because IT doesn't know about them. Gaining the kind of insight into and control over your SaaS estate that SaaS management provides make the adoption of cloud-based applications more viable.

This is important. Even if you are wary of the cloud, SaaS applications are key for success in the modern market. There are numerous reasons for this. Here are three:

1 Innovation

Cloud may not be for everyone, but that's where the action is when it comes to application development. If you want to innovate and explore modern technologies and best-of-breed tools, you will have to access cloud-based and cloud-native applications to do it.

2 Decentralization

While it does bring some risk with it, forcing employees to go through IT to procure the tools they need is simply not efficient. Asking IT to vet solutions and decide what employees should use can also impact productivity and satisfaction.

Decentralizing the purchase of software, while maintaining visibility and governance, can deliver gains in efficiency, productivity, and employee retention.

3 Accessibility

62% of employees work remotely at least some of the time. Ring-fencing the servers in your office may not be viable for your workforce. SaaS solves this problem. SaaS allows your employees to continue working in case of unexpected events that prevent them from coming into the office. It also frees up IT team from having to install and manage applications on every device.

What's Right For You?

So, what's right for your organization?

• Software-as-a-service (SaaS) applications?
• On-premise solutions?
• A hybrid mix of both?

The right course for you will depend on your needs and industry:

• A highly-regulated organization operating business-to-business (B2B) in a legacy industry may find their security needs outweigh their collaboration requirements
• A small-scale online retail start-up with a diverse, remote workforce will benefit from the speed of implementation and innovation of SaaS applications, while also having fewer security risks
• Generally, however, most businesses will benefit from a hybrid approach, leveraging SaaS in appropriate areas and keeping other business functions on-site

So how do you decide?

SaaS Management For A Hybrid Approach

Software-as-a-service (SaaS) management begins with SaaS discovery. Before you can determine whether cloud-based applications are right for your business, you need to know what SaaS applications your organization is using, who is using them, and what they're using them for.

Automating this process by using a tool to analyze your single sign-on (SSO), financial, expense management, contract management, and cloud access security systems is extremely helpful. This allows you to get a true view of your application portfolio without any bias or, more importantly, any gaps.

You then need to look at the role SaaS applications play in your entire application portfolio. Finding the best mix calls for you to experiment and test models for change before you undergo a transformation. That's where LeanIX comes in.

How LeanIX Can Help

Automate software-as-a-service (SaaS) discovery and management with LeanIX. Get clarity on SaaS application use in your organization while ensuring efficient SaaS contract management.