Why use cloud hosted software

On-premises vs. cloud software

In the form of cloud computing and SaaS, users now have other options for using software: Instead of buying the corresponding program, installing it on their own PC and then using it, they opt for a subscription. A manufacturer hosts the software in a data center and offers users access to it. Your own PC or laptop only establishes a connection via the browser, the actual computing power takes place in the data center that is perfectly set up for it. Your own hardware only needs to provide internet access.

Not only the hardware is maintained by specialist staff, the software is also always up-to-date. Updates are installed without any additional work on the part of the user and are immediately available. Since the software is independent of the PC, you can access the program from anywhere - you are not restricted to either the device or the location. Without internet access - and this is a major disadvantage of cloud software - nothing works. This can be particularly critical for professional users and companies: the efficiency suffers because of a bad internet connection, this is sometimes not acceptable.

Professional software can be associated with high costs. In the case of on-premises solutions, these are usually settled with a one-off purchase, but making such a large investment is not always possible, especially for smaller companies and founders. Also: When the company and the requirements grow, the purchased program may no longer be suitable faster than you thought when you bought it. With most SaaS providers, users can choose between a monthly or an annual payment and thus switch to another product at relatively short notice. Additional functions or additional employee access can usually be booked easily and cheaply.

Anyone who opts for cloud software must both place trust in the provider and hand over control to them. Trust is so important because very sensitive and company-relevant data are sometimes stored in the provider's data centers. If the manufacturer of the cloud software uses the privacy does not take it seriously, it becomes critical. The transfer of control is also potentially problematic: If the provider decides (independently or externally) to discontinue the offer or even to pause for maintenance work, this failure can have negative consequences for the users.