To be SaaS or not to be, that is the question! Hamlet’s logistical problems were very different to ours, but the question of the physical location of a software package is an ever-present dilemma for professionals in the world of transport and fleet management.
In fact there is still a lot of confusion regarding the benefits and disadvantages of the solutions available. So, considering that providing help for the transition to digital solutions is one of the missions for our company ENG Automotive Italia, we have decided to outline the considerations to be borne in mind when selecting an IT fleet management system for your company, and whether this should be in SaaS or on-premises licence mode.
Here at ENG Automotive Italia we think that we well-positioned to voice an opinion, because we are we are Certified Partners of VDO Fleet Italia – a Continental Company – both of whom have constructed their identity and reputation on the SaaS system.
SaaS mode: what does this mean?
SaaS is an acronym for Software as a Service. This basically means that it is a software system accessed through Internet instead of being installed directly on corporate servers or computers. Data is cloud-stored by the service provider, who is also responsible for the maintenance and updating of the software and apps.
Economic benefits
- The cost of using a SaaS service is proportional to the resources and functions that are used.
- As regards company accounting, the SaaS mode is not considered as a form of investment, but rather as a fixed operational cost. In other words, it is a cost that can be deducted from corporate profit, thus reducing taxable income.
- Specific hardware is not required. The fact that software and data are stored in the Cloud makes it possible to minimize costs and reduce the company servers’ energy consumption.
- The SaaS mode is an all-inclusive formula, comprising software, updates, help and consultancy, available at all times, wherever you are.
Flexibility
- No installation is necessary, neither any particular maintenance
- Software updates are automatic
- Data is backed up daily (no possibility of losing important or sensitive data)
- Access to data and the app is uninterrupted, in other words 24 hours a day, 365 days a year
- The app can be reached from any workstation, whether in Italy or other countries; distance working is always possible, requiring just an Internet connection and any device, whether PC, tablet or smartphone
- On arrival of new staff members, their virtual workstations will be ready in less than 24 hours; if you move to new premises, or add a new subsidiary, your IT system and the SaaS-mode app will accompany you everywhere without a hitch!
On-premises licence mode: an obsolete option?
In the on-premises licence mode, the app is installed directly on your computers. Therefore you become the owners of four elements: the app, the database, the server hosting both the app and the data, and the IT network’s components.
With licence mode, it is true that you will have complete control of the entire IT chain, but you will also need your own specialist team, or an external IT supplier, to provide updates and maintenance for the various elements of the chain.
For this reason, in addition to the cost of the software licence itself, there are other ancillary costs which are not fixed over time, making it more difficult for company management to forecast the exact annual cost of the system.
As regards installation, the average time required for installation and configuration for licenced software is about 4 months, differently to SaaS-mode software which can be up and running in less than a month.
So, all considered, an app in SaaS mode offers greater flexibility, and no management or licence-purchase costs.
However, an app with an on-premises licence will be preferred by companies whose policy is to be licenced owners of the software and who have the necessary internal resources for its management and maintenance.
In conclusion, the selection of the software provision mode most suitable for the company is not always obvious. However, we feel that one consideration is worth mentioning.
The SaaS option is to be preferred in all small and medium-sized companies, because these are the organizations that, more than others, need smart, flexible solutions that are suitable for a wide range of requirements, without limitations in terms of location and time of day.
