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