Is a SaaS Solution More Expensive Than an On-Premises Installation?
If you look purely at the license costs, you may quickly come to the conclusion that a SaaS solution is more expensive than the on-premises version. But it is not that simple. Whether or not it makes sense financially to host Clarity outside of your own company depends on many factors. You will use different services depending on which deployment option you choose. With the on-premises model, you purchase the licenses only, but when you opt for the itdesign Clarity SaaS package, it will include all hosting and operation services as well.
In the End, the Total Cost of Your On-Premises Solution May Be Higher Than You Think
For many of our customers, it is the issue of cost that initially triggers a discussion about whether or not they should switch from on-premises to SaaS. It is important that the internal IT processes be streamlined, expenses be reduced, and hardware be conserved. If high license costs are cited as a counter-argument against Clarity SaaS, however, you may also fail to take into account all of the relevant costs of the existing on-premises solution. This is frequently the case because they are more difficult to measure and are often not transparent.
As a Clarity on-premises customer, you would already have set up the necessary infrastructure. But this requires ongoing support. Maintenance is your own responsibility, and your IT department must maintain hardware, databases, and operating systems as well as the software itself. At the same time, you must also provide your development service provider with access.
The opaque but considerable internal expenses are even more significant. In addition to the time spent by your IT department, on-premises customers often complain about the time that is required to coordinate between internal contact persons and different departments or service providers. For any questions or requirements you may have, you are simply referred to one contact person after the other. You end up spending a lot of time just looking for the right person to talk to. Sometimes you have to settle for long waiting times until internal bottleneck resources are available.
Our recommendation: Make sure you consider the Total Cost of Ownership of an on-premises solution when making your cost assessment. In addition to the purchase price of the licenses, this would include the hardware, maintenance, databases, and operating systems running costs, as well as personnel expenses. Also, don’t forget about the opportunity cost of missing upgrades. Experience has shown that software upgrades are done less frequently for on-premises installations due to a lack of internal IT capacities, among other factors. So your users are constantly missing out on new features that your competitors may have been benefiting from for a long time already.
Total Cost of Ownership for an On-Premises Solution for Clarity
On-premises costs may seem lower at first glance, but this can be deceptive if you neglect to consider all the relevant factors. So remember to take the Total Cost of Ownership of an on-premises solution into account:
- License costs for software and database
- Running costs for license maintenance
- Hardware costs
- Personnel costs
- Operation and maintenance expenses
- Communication with various contact persons
- Need to continuously stay on top of the latest knowledge
- Opportunity costs of missed upgrades and innovations
With the itdesign Clarity SaaS solution, you get an all-round hassle-free package. Experts take over the operation and hosting of your application – with no hidden costs.