On-Premise vs. SaaS

SaaS ( Software as a Service ) 🧩 Main Idea In the past, you had to download and install software to use it. With SaaS, the software is hosted in the cloud, and you can use it through a web browser.
You don’t buy the software — you subscribe to it (monthly or yearly). ☁️ How It Works

• The software is stored on remote servers (like Amazon AWS or Google Cloud).
• Users simply log in online to access it.
• All updates, data backups, and security are handled by the service provider.

💡 Common Examples

• Google Docs — create and edit documents online.
• Zoom — video meetings without complex setup.
• Dropbox / Google Drive — store and share files in the cloud.
• Slack, Notion, Canva — collaboration and productivity tools.

On-Premise 🧩 Main Idea In the on-premise model, the organization:

• Buys or licenses the software.
• Installs it on their own computers or local servers.
• Maintains and updates it themselves.

So, everything — data, updates, and security — is managed inside the company’s infrastructure, not by an external cloud provider. ⚙️ How It Works

• Software is installed on the company’s machines.
• The company’s IT team maintains and updates it.
• Users can access it only within the organization’s network.

🏢 Example

• Microsoft Word (offline) — you buy and install it on your computer.
• ERP systems (like SAP, Oracle installed locally) — run on the company’s internal servers.

🕰️ Short History

• In the 1960s, the basic idea existed in the form of time-sharing on mainframe computers, where multiple users shared the same software resources.
• In the 1990s, as the internet became more widespread, it became possible to deliver software through web browsers.
• In 1999, Salesforce was founded — this marked the true beginning of the modern SaaS era. They offered CRM software through the internet using a subscription model.
• After 2000, major tech companies like Google (Google Apps), Amazon (AWS), and Microsoft (Office 365) expanded the SaaS concept globally.
• By the 2010s, SaaS had become the dominant software delivery model used by most businesses and individuals.

Read the full article here: https://leman-ibrahimli23.medium.com/on-premise-vs-saas-251316bfe450