We are frequently asked by maintenance managers about the difference between a SaaS and an On Premise service/ product. In today’s post, we will highlight the economic benefits of using a SaaS service in your maintenance department.
What is SaaS (Software-as-a-Service)
First, we will give you a short definition of what SaaS is and how it differs from On Premise solutions.
Software-as-a-Service (SaaS) is a licensing and distribution model with which software applications are offered via the internet, i.e., as a service.
The service is is generally used on a subscription basis. This makes SaaS ideal for software used for business purposes, such as E-Mail, Instant Messaging and also CMMS (Computerized Maintenance Management System).
In contrast, On Premise solutions run on customers' own servers. So, the term on-premises software (often abbreviated as on-prem) refers to a licensing and usage model for server-based computer programs.
SaaS in maintenance: The economic benefits
Now you are probably asking yourself the question, what are the economic advantages of a SaaS solution compared to an On Premise solution? We present you here some advantages if you decide for a CMMS on a Software-as-a-Service Basis.
No hidden costs
Roughly speaking, On Premise systems account for only 10 percent of the total cost of their product. A much larger portion (90 percent) relates to other costs, such as hardware, personnel and implementation.
With SaaS solutions, however, about 70-90 percent of the total cost is due to the regular SaaS fee. Only 10-30 percent is accounted for by aspects like customizing and training. This means that in a SaaS environment, significantly fewer “hidden” costs can be expected.
Some price advantages for SaaS solutions:
- Low to zero configuration costs for your CMMS solution
- Fast introduction into the CMMS system. Compared to installing internal IT solutions, setup is quick and easy
- No external customization costs for your individual processes in your maintenance department
- No support costs (hotline)
- No system maintenance (maintenance contracts)
- Updates for your CMMS solution are included. You´ll always have the newest and best version available
- No staff costs and adjustment costs for external service providers and consultants
- Operation and maintenance of IT resources disappear. Upgrades are carried out by the CMMS provider, and enabling additional users is possible within minutes.
- Companies receive planning security through transparent monthly fixed prices for outsourced IT operations via cloud infrastructure. Companies no longer need to build up their own additional IT resources for both personnel and materials.
- SaaS Total Costs: SaaS solutions frequently have financial benefits. These are realized primarily by eliminating high investments in hardware and licenses. The relatively fast implementation also has a cost-cutting effect. Overall, the costs of cloud-based offerings are also easier to estimate, as unexpected factors such as license upgrades or server maintenance and configurations are stamped out.
Briefly summarized - the economic benefits of a CMMS system based on SaaS
- Lower costs – As a company, you’ll avoid costs for providing your own updated servers, which is a cost for both purchasing and maintenance. If you have a service that should be available 24/7, you also need staff available, who are ready on short notice if there is any problem with the servers, either internally or externally. This can be avoided, if you use a SaaS solution for your maintenance department instead.
- Flexible solution – You only pay for what you use, which means you pay for the active users and, together with the service, most other costs such as support/helpdesk are included.The solution completely addresses the requirements of your maintenance as opposed to an On Prem solution where you have to map your processes at high cost and time and updates can also be very lengthy.