On-Premise versus Software as a Service (SaaS)

When it comes to enterprise software, there are two main models for deployment: on-premise and software as a service (SaaS). On-premise software is installed and run locally, on the company's own servers. SaaS, on the other hand, is delivered via the web and accessed through a web browser.

We hear the two terms used in the Product Information Management (PIM) world however before we dive deep into the comparison, we need to take a step back and discuss IT architecture in general. We discern 3 "admin layers":

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1.? Infrastructure (Physical Layer) - The Physical Layer (also called the "Hardware Layer") is the basis on which all software runs.?

2.? Platform (Operation Layer) - The Operation Layer covers the Operating System or OS that runs on top of the Physical Layer: it manages all traffic on the computer or server.

3.? Software (Application Layer) -? The third and final layer is the Application Layer. In this layer, we have specific applications like your PIM System.

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??Every layer requires a different set of skills and experience to operate effectively. An Application Manager knows little about managing the Operating System (generally speaking) and most OS specialists know little about managing the physical hardware.?

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Software in general (including PIM Systems) is often offered in a range of options. Some Software Vendors offer their software in multiple setups (e.g.: both a "SaaS" option and an "On-Premise" option), but there is a clear shift towards (pure) Software as a Service. Many Vendors are shifting from On-Premise to offering a SaaS option next to (or instead of) their On-Premise option.

Each layer has its own specialisms. An application manager usually knows little about the OS and a specialist in the field of OS is usually not the one who can manage the physical device.

Software and therefore PIM software is offered in different variants. Sometimes a software supplier can deliver its software in more than one variant, but more and more you see that the software solutions in particular only offer the SaaS variant. We are clearly seeing a shift from On-Premise to SaaS.

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Five ways to manage your Layers

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You can manage your Physical, Operations, and Software Layers in multiple ways. We see 5 different setups that are clearly discernable, especially when it comes to who is responsible for what:

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1.? On-Premise

2.? IaaS (Infrastructure as a service)

3.? PaaS (Platform as a service)

4.? SaaS (Software as a service) Single Tenant

5.? SaaS (Software as a service) Multi-Tenant

What are the main differences?

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On-Premise

• Managing the technical infrastructure, platform, and technical software is left to you (the customer). Managing the Applications (including PIM Tools) are also the responsibility of the customer, often with support from the Vendor.

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IaaS (Infrastructure as a Service)

• Managing the infrastructure is outsourced to a third party (a data center, for example). Platform and Applications are still controlled by the customer.

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PaaS (Platform as a Service)

• Infrastructure and platform are both managed by a third party. The Application layer is still the responsibility of the customer.

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SaaS Single Tenant

• The complete stack (from Physical to Application Layer) is managed by a third party. However: the stack is managed specifically for one customer and upgrades and changes are deployed in collaboration with the customer. All upgrades and changes are the same for all customers, but you might be running on different versions.

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SaaS Multi-Tenant

• The complete stack (from Physical to Application Layer) is managed by a third party. All upgrades and changes are managed by a third party and are the same for all customers. Multiple customers might use the same instance of the software, but in many cases, the data (e.g.: content, images, video) are managed in separate databases.

There are pros and cons to both models. On-premise software can be customized to meet the specific needs of an organization, but it requires a larger up-front investment and more in-house IT resources to maintain. SaaS is typically more affordable and easier to set up and use, but it may not offer the same level of flexibility or control as an on-premise solution.

So, which model is right for your business? It depends on a number of factors, including a budget, IT resources, and the specific needs of your organization.?

Want to learn more?

If you have any questions regarding Product Information Management, from PIM Selection to Implementation, or how a PIM would fit in your IT landscape? Feel free to browse our database of articles on everything PIM-related. If you want to know which PIM would be the best fit for you (and get a free 1-hour consultation with a PIM Selection consultant with relevant industry expertise): do our Quickscan. In just 30 minutes you will be able to create a profile that we can match to the right PIM system.

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