SaaS vs On-Premise in Retail in 2023: Why SaaS is better

The retail industry’s digital transformation has given rise to a plethora of technological solutions aimed at streamlining operations and improving shopping experiences. One fundamental decision that retailers in any vertical must make in 2023 is whether to adopt a Software as a Service (SaaS) or an On-Premise unified commerce platform, making the SaaS vs On-Premise debate critical.

What is SaaS

Software as a Service (SaaS) is a software delivery model in which applications are hosted on the servers of a service provider and made available to users via the Internet. Instead of purchasing and installing software on individual computers or servers, users pay a monthly or annual subscription fee to a SaaS platform.

Because SaaS applications are typically accessed via a web browser, they are accessible from any device with an internet connection. This provides users with a high level of convenience and flexibility.

SaaS vs On-Premise: Why SaaS is better

Cost-Effectiveness. On-premise solutions typically have high upfront hardware and software costs, as well as the need for ongoing maintenance and upgrades. SaaS platforms, on the other hand, provide a subscription model with no initial investment, and the service provider typically handles all maintenance and upgrades to standard software features. This affordability makes SaaS platforms an attractive option for businesses of all sizes.

Scalability and agility. Demand for retail businesses fluctuates frequently (peaks during holiday seasons and sales, valleys during off-peak times), necessitating a scalable solution. Due to hardware constraints and the time it takes to scale, on-premise solutions may struggle to keep up. SaaS platforms are built for rapid scalability, allowing retailers to adjust their usage based on demand.

Faster implementation and innovation. On-premise deployments necessitate a significant amount of time for installation, configuration, and testing. In comparison, SaaS platforms can be quickly implemented, reducing time-to-market. SaaS platforms’ inherent flexibility also allows for the rapid deployment of new features or integrations, making them ideal for the dynamic retail environment.

Uptime and reliability. SaaS providers typically have robust server infrastructure and redundancies in place to ensure guaranteed levels of server availability and system up-time that are both difficult and costly to replicate with on-premise deployments.

Enhanced security and compliance. The retailer is solely responsible for security and regulatory compliance when using an on-premise solution. This burden can be overwhelming, especially for small and medium-sized businesses. In contrast, SaaS providers typically provide robust security measures, such as regular updates and patches to address vulnerabilities. Furthermore, many SaaS platforms are built to be compliant with standards, helping retailers maintain compliance.

Anywhere access. Software as a Service platforms are cloud-based and accessible from any location with an internet connection. This ease of access enables retailers to manage their operations from any location, which on-premise solutions cannot match.

Integration. On-premise systems frequently result in information silos, impeding efficiency. SaaS platforms are designed to integrate seamlessly with existing business systems, such as ERP or CRM tools, to provide a unified and efficient view of business operations.

Focus on core business. On-premise deployments require the management of IT infrastructure and the resolution of issues, diverting resources away from the core business. SaaS platforms relieve this burden, allowing retailers to concentrate on improving their products and services and providing excellent customer experiences.

In conclusion, as the retail landscape evolves, SaaS solutions provide enhanced flexibility and convenience for retailers looking to thrive in a changing environment and are seeking agility, growth, and profitability.

Consider SaaS with Openbravo

Openbravo offers a differentiated cloud-based SaaS retail software for unified commerce in diverse verticals: 

1. Unified commerce-ready. Rich unified commerce solutions including central retail back office, store inventory, store fulfillment, OMS, WMS, and retail analytics. Our full-web retail POS system avoids local store servers and supports fixed tills, mobile devices, self-checkout terminals, and kiosks, thus resulting in a dramatically simplified store IT complexity.
2. Global. A global retail platform for international markets expansion that enables retailers to reach customers worldwide, adapt to local preferences, and overcome country and territory specific barriers. Retailers in over 50 countries benefit today from Openbravo.
3. Fully managed cloud. An optimized cloud infrastructure for each customer and monitored 24/7/365 days by cloud experts, it provides best-in-class availability in terms of server uptime, RPO (Recovery Point Objective) and RTO (Recovery Time Objective) supported by periodic backups, database archiving, and high availability options. Security best practices are applied at all levels to keep your solution up and running and your customers’ information safe from malicious access, including advanced options such as Openbravo WAF (Web Application Firewall).
4. Fully modular. Modularity, a key principle of any future-proof composable architecture according to Gartner, gives retailers more freedom and flexibility to adopt and extend the system to specific business needs at their pace.
5. API-first architecture. Openbravo’s service-oriented API facilitates integration with any third-party system and technology, essential today for seamless end-to-end shopping experiences. Available connectors with ERP solutions, eCommerce, and payment platforms, simplify even more any integration effort.
6. Resilient to connectivity issues. Openbravo offers a modern React-based POS and inventory management frontend technology that is fully web, responsive, and offline resistant.

Are you considering moving from your legacy on-premise system to a new cloud-based SaaS unified commerce platform? Perform your own Software as a Service vs On-Premise analysis first. Afterwards, and whatever your strategy is, Openbravo is a SaaS option you must consider. Software, managed cloud and support services, all in one in a single pricing.  Contact us today to discover more.