Software systems now come in two flavors:
a. You can do the traditional thing,which is buy some hardware,buy a license for the software, and run the system in-house, or
b. you can select a vendor who owns servers running the same software in an industrial strength facility, and they can supply you with a login. In essence you “rent” the software. This is known as “Hosted” or “Software as a Service” DAM (aka “SaaS”).
First, let’s clarify the mission: the goal here is to compare a software application being run in-house, versus the same functionalities being available in a hosted system, where the hardware and software, and their maintenance, are a vendor’s problem. The “application” is the critical thing here: we are not talking about “dumb” hosting, where the only benefit is a source of raw storage. In these applications there are databases and workflows involved in the systems.
Second, we will be setting up a framework to compare an IDENTICAL application in the two different scenarios. If you are considering one vendor for the licensed application, and another for the hosted application, you need to add in consideration of how the features of their applications differ, and how that might impact their value to you. Some vendors supply the identical application in either a licensed model, or a hosted model, and so a direct apples-to-apples comparison is actually possible.
Which one is right for you?
Download the SaaS vs In-house DAM whitepaper to learn more.