The integration of payment software is gaining momentum because businesses are interested in launching payment service provider solutions and getting a large profit. However, entrepreneurs have to first solve the question of where the payment solution will be located in the cloud or on their own servers. Although SaaS solutions are gaining in popularity, on-premise software is still relevant because it has a number of undeniable advantages. Let’s compare the key aspects of SaaS and on-premise payment software platform and try to find out which of these options is the best if you decide to launch your own PSP.
SaaS vs On premise: key aspects to compare
Customization
SaaS
When comparing on premise vs SaaS, possibilities of modification and customization of the cloud solution are extremely limited. You only get pay-as-you-go to get specific functionalities and ready-to-use gateways. In case the option provided by the payment solution provider doesn’t suit you anymore for some reason there isn’t much you can do. Moreover, if you decide to scale your business and the SaaS solution is no longer powerful enough, there is nothing you can do but look for other software.
On-premise
On-premise payment software has a clear advantage in this round of SaaS vs on premise since you own it and only you decide how to develop it. You can always scale your business without fear of capacity shortages, as well as modify the software and change components as you see fit. It’s all about the needs of your business and technical capability.
Deployment time
SaaS
One of the key advantages of cloud solutions when comparing on premise software vs SaaS is the faster deployment time. A cloud solution has pre-built integrations, and the number of modifications and options for customization is usually minimal. This way a SaaS solution makes it possible to get your business up and running in the shortest time possible.
On-premise
This type of solution requires more time to start full-fledged work. The thing is that all sorts of modifications, fine-tuning of software to meet your business needs, and addition of all necessary functions require time so that everything works as intended. In addition, on-premise software also takes time to deploy on your servers. So it’s important to structure your business plan white taking all of these activities into consideration, and ideally allow for extra time in case of unforeseen issues and schedule shifts.
SaaS vs On premise software cost comparison
SaaS
Cloud-based payment solutions are usually less expensive in the short term. By choosing the SaaS option, you do not need to spend money on expensive infrastructure and a team of IT specialists. You simply buy a subscription for a certain period of time and get access to the services indicated by the software provider. However, don’t think that integrating a payment solution is cheap. You’ll have to pay for the use of the solution on a regular basis, which may result in serious expenses in the long run. In addition, the provider can raise the price and there is nothing you can do about it.
On-premise
In SaaS vs on premise software cost comparison the latter might seem a lot more expensive, and at first it really is. On-premise payment solutions require a large initial budget because you will have to pay for the time of the specialists who will develop and fine-tune the software for you. Adding the features you need and integrating new modules can take up a lot of resources in terms of time and money. You also have to spend your budget on IT infrastructure, such as servers and other hardware. Nevertheless, in the long run, you are likely to recoup your investment. You only have to pay once, and a solution tailored to your needs will give you a competitive advantage which can then be converted into a profit.
Functionality
SaaS
When choosing a cloud solution in the SaaS vs on premise dilemma, you know in advance what features you’re going to get. In fact, it is a boxed solution with clearly defined functionality, which doesn’t provide the possibility to extend functionality. At best, the provider will have several service plans with different sets of features.
On-premise
With an on-premise solution, you decide which features your payment software will contain. You are free to add the features and modules you need based on your processes and the nature of your business. The advantage of this approach is that you are not guided by the options you are given, but by the strategic planning of business development and your competitive advantages.
Analytics
SaaS
Not all cloud solutions have analytics functionality. In this case, you need to specifically look for a provider who includes this feature in the subscription.
On-premise
As we said before, you can add any modules to your on-premise solution, including analytics. When comparing SaaS vs on premise the latter will allow you to effectively monitor the efficiency of your business and key indicators.
Conclusion
So, these were key aspects of on premise vs SaaS comparison. As you can see, integrating a cloud solution isn’t always the best option. Yes, on-premise payment software is more expensive and its deployment takes longer. Nevertheless, by developing its own solution or buying white-label software, the business gets full control and independence from the vendor. On-premise payment software allows you to take into account all the features of business and make a truly effective solution, adapting it to business processes and not vice versa. In the future, on-premise payment software can easily evolve and expand, which will come in handy when you need to scale the business. The main thing is to find a reliable technology partner who will do an in-depth analysis of your business and create a solution for you that will fit you perfectly.
