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Choosing between Web-Based (SaaS) and Traditional On-Premise Software.

Updated on December 1, 2015

Web-based applications, cloud-based apps or SaaS (“Software as a service”) is a technology of providing software products via the web.

Cloud/web-based systems are increasing in popularity partially because they reduce the need for IT resources. When subscribing for a web-based software you are leasing applications and hardware simultaneously on a pay-as-you-go basis, Cloud computing can significantly reduce the company's IT expenses, as it eliminates the need to purchase expensive hardware, and then update, backup and manage the system.

Major advantages of cloud-based systems apart from cost-efficiency:

· Easy Access to Information

· Access to information by multiple users

· Automatic Software Integration

· Backup and Recovery are done automatically by service provider

· Almost Unlimited Storage available for large companies and scalable storage space for small and medium companies as a way to reduce subscription fee.

· Quick Deployment of upgrades

· Technical support is included into the service fee

The obvious benefit of leasing software is that you are paying only for what you are actually using.


On the other hand on-Premise traditional software solutions do have major advantages too.

· On-Premise software could be more reliable in terms of security and privacy as there’s no need to entrust business financial information to web-based software provider as Software and hardware resides at the location of the business operator

· On-Premise software offers the greatest amount of flexibility, personalization and customizations possible.

· On-Premise systems doesn’t require stable internet connection

· No recurring subscription fees

· On-Premise software runs comparatively faster and more smoothly


World's top CEO on Cloud computing

Despite these significant arguments in favor of On-Premise software solutions, the cloud computing IS the future. The rapidly evolving software technology and new encryption methods will strengthen the image of cloud software solutions in the next few years. Technology experts and stakeholders say that companies big and small are making their way to the cloud for everything from daily tasks to storing complex business information and they expect by 2020 they will “live mostly in the cloud” and not on the desktop, working mostly through web-based apps accessed through mobile devices.

Here’re some examples of more advanced cloud computing applications of 2015 from the technical point of view.

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