Premise-Based Web Document Management or a SaaS Model: What will it be for Your Enterprise?

Many companies have already benefitted from or will soon benefit from web document management systems.1

Web Document Management Systems: Options for Your Enterprise


When it comes to web document management software systems, there are two basic models that can be entertained in terms of where the solutions will be hosted: 1) the premise-based web document management system and 2) the SaaS (Software as a Service) model. Both system types have their advantages and disadvantages (see "Advantages" sections below) but the surprising thing about the premise-based and SaaS models are the myths often associated with each model. Take for example the following:

Myth #1: Premise-Based Solutions are Only for Large Enterprises


This myth is a major misunderstanding and it's a mystery as to how it was perpetuated. Premise-based solutions can, despite many protests, be valuable for small and mid-sized companies. For more information on this subject please refer to the white paper, Comparing the ROI of SaaS Versus On-Premise Using Forrester's TEI™ Approach, by R "Ray" Wang.2

Myth #2: SaaS Solutions are Only for Small Companies


In theory, some research experts still agree that SaaS might be better off to remain in the realm of small companies.3 However, in practice--or in reality--there are more large enterprises that use SaaS than mid-sized or small companies--at least according to a webinar entitled: Software as a Service (SaaS): What is it and is it Right for My Company?4 which is cited below in the Reference section.

Myth #3: SaaS Solutions are Always Less Expensive than Premise-Based Solutions


In general, a SaaS-based solution is often the forerunner for cost savings but that isn't always the case. Over time and depending on a company's circumstances there are situations (possibly rare) in which premise-based web document management solutions can actually be the more economical choice.

Advantages of Web Document Management Software Options


Advantages of premise-based solutions often include the following:

• Large upfront costs but no (or very small) ongoing payments;



• The ability of users to own their own data as well as their own hardware (this can of course be considered a disadvantage);



• The ability of in-house IT personnel to be in control of the system (this also would be considered a disadvantage by some enterprises);



• 
  
  Also according to Wang: "On the on-premise front, integration benefits are more pronounced than with SaaS, resulting in enhanced integration with other IT and operational systems, especially when real-time integration is key,"5 and that "Given the lack of disruption in upgrades, implementation, usability and change management, Forrester [Forrester Research, Inc.] assumes that SaaS deployments have an initial and significant advantage in achieving benefits."6

Advantages of SaaS Software Models


Advantages of SaaS solutions often include the following:

• Allows users to pay an ongoing subscription payment instead of large upfront costs often associated with implementation, hardware, services, etc.;



• Allows users to bypass the need for IT personnel who can maintain the hardware and continual support/upgrades that are inevitably associated with premise-based solutions;



• According to R "Ray" Wang of Forrester Research, Inc. "…SaaS deployments avoid charges for upgrades, hardware, temporary business support and backfill, and end user support and administration."7



• Wang also mentions that "SaaS deployment options bring not only immediate business benefits but also frequent, automatic updates; shorter time to deploy; independence from IT; and improved usability.



• SaaS requires minimal upfront expenses;

References


1. Many of the ideas portrayed in this article have been extracted--and subsequently paraphrased--from a NetReturn-sponsored white paper entitled Comparing the ROI of SaaS Versus On-Premise Using Forrester´s TEI™ Approach, by R "Ray" Wang of Forrester Research, Inc. (http://www.netreturn.com.au/uploads/whitepaper/Comparing%20ROI%20of%20SaaS%20vs%20OnPremise.pdf). Extracted on February 20, 2009. Others originate from the following webinar: Software as a Service (SaaS): What is it and is it Right for My Company? (http://www.mastercontrol.com/downloadables/webinars/july2008/index.html). Extracted February 6, 2009.

2-3. Comparing the ROI of SaaS Versus On-Premise Using Forrester´s TEI™ Approach, by R "Ray" Wang of Forrester Research, Inc. (http://www.netreturn.com.au/uploads/whitepaper/Comparing%20ROI%20of%20SaaS%20vs%20OnPremise.pdf). Extracted on February 20, 2009.

4. Webinar: Software as a Service (SaaS): What is it and is it Right for My Company? (http://www.mastercontrol.com/downloadables/webinars/july2008/index.html). Extracted February 6, 2009.

5-7. Comparing the ROI of SaaS Versus On-Premise Using Forrester´s TEI™ Approach, by R "Ray" Wang of Forrester Research, Inc. (http://www.netreturn.com.au/uploads/whitepaper/Comparing%20ROI%20of%20SaaS%20vs%20OnPremise.pdf). Extracted on February 20, 2009.

Marci Crane is a marketing communication specialist for MasterControl in Salt Lake City, Utah. For more information in regard to web document management (including SaaS models) or to access MasterControl white papers or videos, please feel free to contact a MasterControl representative.