The choice between using on-premise software and SaaS (Software-as-a-Service) is currently a hot topic for manufacturers. Here are some key points to help you better understand the benefits of SaaS and why many manufacturers are shifting towards this solution.
Security Concerns and Solutions
Previous Concerns
In the past, many manufacturers were concerned that cloud-based software was less secure than on-premise systems because it was more susceptible to attacks.
Current Reality
- Higher Security Standards: Major cloud service providers such as Amazon and Google have established very high security standards, often surpassing what companies can achieve on their own.
- Internal Security Measures: Cloud security also depends on the implementation of internal security measures and employee training on best practices. Security responsibility is shared between the cloud provider and the customer.
- Provider Expertise: Small and medium-sized enterprises often benefit from the high level of security expertise of cloud service providers, offering better security measures than their own technical teams can provide.
Benefits of Using SaaS for Manufacturers
Reduced Resource Costs
Cost Efficiency: On-premise software requires significant investment in servers, maintenance, and IT staff. A report by Intacct Corporation states that maintaining existing systems can consume up to 75% of a company’s IT budget.
Reduced Internal Costs: SaaS eliminates the need for expensive infrastructure, reducing internal resource costs. There are no additional expenses for support, training, or service integration, enhancing the economic advantage of SaaS.
Enhanced Customer Support
Continuous Support: SaaS providers have a vested interest in ensuring the ongoing success of their customers, as their revenue depends on subscription renewals. This leads to better customer support and continuous improvements based on user feedback.
Guaranteed Value: The SaaS model ensures that providers invest in delivering real value to their customers, promoting better service and support compared to the one-time license fee model of on-premise software.
Try Before You Buy
Pre-Purchase Testing: SaaS often offers trial versions or pilot phases, allowing manufacturers to evaluate the software’s effectiveness before committing. This minimizes the risk of investing in software that does not meet their needs.
Scalability and Flexibility: SaaS applications can easily scale up or down according to business requirements, offering more flexibility compared to the static nature of on-premise software.
Conclusion
The shift towards SaaS in manufacturing is driven by both technological advancements and changing perceptions. As security concerns are addressed and the economic and operational benefits become clearer, an increasing number of manufacturers view SaaS as a viable and advantageous option. By adopting cloud-based solutions, manufacturers can reduce costs, enhance support, and gain the flexibility needed to remain competitive in the rapidly evolving market.
If you’re interested in how Data Insight provide you our OEE software, improve efficiency of your plant and drive profit for your business, don’t hesitate to schedule a demo with our team.
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