Companies find trouble in selecting between Cloud based Software or In House one,A Bangalore based A123 company was looking for solutions to optimize and standardized its processes. A multidisciplinary team was created and assigned the task.

Team came with suggestion that existing software could be enhanced as per fast changing market needs. It was also recommended to plugin other processes which are presently reporting manually.

Management accepted the software upgrade option and software vendors were contacted. 

After carrying out the need identification the representative of software companies gave solution of new software with all required features. They also mentioned system requirement for the new software like servers, firewall, bandwidth etc.

A123 took a price estimate for server, drives, firewall etc for new software along with the regular maintenance cost. For A123 the cost was coming out to be very high, so they asked for an alternate from vendors.

One company suggested them about Cloud Software or Software as a Service (SaaS). A123 was worried out security, integrity of data being hosted on cloud. Afterall for every company data is the key and how can they share it so easily.

Let us try to find out SaaS is optimum solutions for A123 or not ?

Most companies whether big or small have similar opinion what management of A123 had. We will take up both options and understand the possible solution.

Option A : In House Software

Pro’s

  • Software is hosted in local server hence data remains with company
  • All team members can have access to software, no limitation on number of users
  • Creation, deletion of new login is in-house task
  • Data remains in house hence safe (A123 viewpoint was)

Con’s

  • Capital & recurring investment on server, routers, bandwidth, Firewall
  • Dedicated team to manage server
  • Trouble in case of bugs and upgradation
  • Dedicated electricity back up for server
  • Remote access challenge
  • Software may become redundant in some year and again investment for hardware and software upgradation will be required

Option B : Cloud Based Software / SaaS

Pro’s

  • Real Time data availability
  • Better productivity and flexibility in working for teams
  • Improved data security, Most SaaS providers invest heavily on data safety
  • Less Capital expenditure (no inhouse capital and recurring investments)
  • Regular Software updates for bugs and features
  • Work on the go for the employees who travel regularly

Con’s

  • Cost as per number of users
  • Data hosted on external server (some companies may not feel it safe)
  • In case of trouble ticket raising process may be critical 

So, major factor is data security. If Cloud software is to be opted some checklist can be followed – few points could be :

  • Look for reliable service provider
  • If you plan to take a step back or change provider than all data including logins, user account information, logs & everything should be downloadable in standard formats
  • Assistance for migration from existing software to new one should be provided
  • Regular training and support should be available
  • Understand service provider’s process for backup of your data
  • Cost Model: keep an eye on hidden charges like additional login cost, bandwidth cost etc.
  • Select a service which is future ready not only fulfilling today’s need 

Companies may choose there option as per there needs and requirements and as per the nature of work.