On-premise budgeting software or SaaS?
Companies today agree that the best way of streamlining their finance processes is through the use of a budgeting software. Finance users do not argue that budgeting in Excel can be a gruesome experience especially when the data becomes too large and complex to manage. Much of their time is now spent fixing errors and broken macros than actually analyzing.
Today, companies have several options to look at given the many budgeting software mushrooming all over. There are even different ways of implementing these software now – on premise or SaaS. However, before taking that big step to automation, it is important not to rush and to really know the basics of budgeting. First, it is important to take a look at your organization´s product lines or services, budgets, expansion plans, and resources.
Method of Delivery
On-premise budgeting software is installed and runs on computers on the premises of the organization using the software. It is sometimes referred to as “shrink-wrap” software. In contrast, SaaS or Software as a Service is an alternative to the standard software installation in a business environment. In SaaS, the user does not pay for the software because it functions more like a rental. They can use the software for a time specified period and pay for the software as they use it.
Many companies are still assessing whether or not moving to the cloud is right for them. This is a very tricky question to answer because it largely depends on the company´s current technology and the complexity of their business. While it is fairly easy for newer companies to move to the cloud as they want a simplified IT model, there are other companies running on legacy platforms – these companies must do a thorough evaluation of whether or not now is the perfect time or if it is the right path.
Below is a table where you can assess which direction is better suited for your company.
Year 1 costs
Organization´s experience with Cloud
Readiness for out of the box solutions
Capex or Opex
3+ years TCO better
Overall Consulting costs similar Perpetual license preferred
Certain software now allows for very minimal IT support Can support several integrations to other applications
CRM and ERP applications deployed on premise
Business is highly unique
50-75% lower for year 1 Save money on servers Annual subscription model preferred
Lower requirement for IT support
Limited number of integrations
Other cloud applications in place
Business is more standardized
There are indeed many factors to consider when choosing a deployment method more than just those mentioned on the table and every situation is different. The biggest mistake out there is to approach the selection of deployment method with a predetermined bias towards a choice through previous experience and corporate culture. It is important to consider the current situation of the company that you are in, free from the bias of previous experience and accustomed practices, so that the best method can be chosen for the organization. Whether it be on premise or SaaS, it shouldn´t really matter for as long as after careful evaluation, the solution and its preferred method of delivery can truly aid the company towards streamlining the finance processes.
For finance experts by finance experts
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DSPanel offers cutting edge technology platform for business analytics, planning, and visualization. DSPanel designs, builds, and operates with the end users in mind. Performance Canvas was created by DSPanel to answer the unarticulated needs of the market not addressed by previous available solutions. With Performance Canvas, information is transformed into valuable business insights for the business executives to utilize in their decision-making process. DSPanel currently has over 2500 organizations deploying their solutions.