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SaaS Versus On-Premise…Deployment Reality

David S. Linthicum



Some of the issues that need analysis when making a cloud/nocloud decision include analysis of the costs, understanding the
use cases, looking at security and governance, and the value of
time-to-market and agility. The idea is to weigh the positives
and the negatives, understand the core metrics, and then make
a decision based upon the best available information.
We’ll explore how to understand the deployment realities when
considering an on-premises versus SaaS solution. We’ll
suggest a decision model and step-by-step process to define
the core metrics for the decision, and provide some helpful
experiences from the trenches from those who have made
these critical calls in the last several years.

Agenda • Step 1: Comparing Costs • Step 2: Understanding Use Cases • Step 3: Considering Security • Step 4: Considering Time-to-Market and Agility • Step 5: Pulling the Trigger • Step 6: Considering Operations 3 .

Not an Easy Decision 4 .

Step 1: Comparing Costs 5 .

Many Moving Parts 6 Source: TechNet .

• Organizations where the cost of SaaS services for comparable on-premise systems are exorbitant. without any way to recover that capital. • Organizations under regulations that require that information reside on private and tightly controlled hardware and software.Cost Advantages of On-Premise • Organizations that have pre-invested in a large amount of hardware and software. 7 . • Organizations that do not have a culture that will readily accept the use of software systems not owned and controlled by the company.

• The ability to reduce risk. • Time-to-market. • Business agility.Cost Advantages of SaaS • The ability to operate at a lower cost of production. • The ability to shift around technology changes. 8 .

” Hurwitz & Associates.Example: Cumulative Total Cost Comparison for SaaS and On-Premise Mid-market with 100 Users Source: “The TCO Advantages of SaaS-Based Budgeting. 9 . Aggarwall and McCabe. 2010. Forecasting & Reporting.

Step 2: Understanding Use Cases 10 .

Middleware services are software services that are built specifically to facilitate communications with one or more on-premise or cloud-based systems or data stores. file compression. or traditional systems that exist on-premise. resources. • Security services are services such as encryption and identity management that allow you to manage access to the SaaS-based system. • Business services are true applications that are delivered as a service. memory management. • Management services are SaaS services that focus on managing software systems. virus protection. etc.SaaS Use Cases • Utility services are services that perform specific tasks related to the management of computer functions. This is what most people think of when they consider SaaS-based providers.. and these utility software services can be delivered using a SaaS model. either those that exist on public or private clouds. 11 . or files.

Step 3: Considering Security 12 .

Understanding the Basics 13 .

The Process • Understanding your security requirements for a specific system and/or data store. • Understanding that controlled access is much more important than the location of the data. 14 . • Vulnerability testing is an absolute necessity.

Control does not Mean Security • According to Alert Logic's Fall 2012 State of Cloud Security Report: – Variations in threat activity are not as important as where the infrastructure is located.whether enterprise or cloud -. because attacks are opportunistic in nature. 15 .has equal chances of being attacked. – Anything that can be possibly accessed from outside -.

Step 4: Considering Time-to-Market and Agility 16 .

The Value of Agility 17 .

The Value of Time-To-Market 18 .

Step 5: Pulling the Trigger 19 .

• Understand your requirements. • Understand your user. • Understand what success means. 20 . • Understand the migration strategy. • Understand the risks.“It’s all about the execution…” • Understand your business case. • Understand the technology.

Path to the clouds Path to clouds: start with the requirements Understand: • Mission drivers • Information under management • Existing services under management • Core business processes 21 .

Step 6: Considering Operations 22 .

Cloud Operations? It’s Not What You Think Source: Rackspace 23 .

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