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Apr 21, 2020

SaaS vs. On-Premise Asset Performance Management Solutions

BY Matt Kirchner

This year, maximizing value from analytics continues to be a top priority for asset-intensive companies everywhere. Unfortunately, we’re seeing many companies getting confused by some age-old misconceptions about technology…many of which have to do with Software-as-a-service (SaaS) solutions.

On-Premise vs. SaaS

Before we get into the benefits of SaaS solutions over on-premise ones, let’s differentiate the two terms.


These systems and applications are hosted locally on a machine within a company’s physical environment. As it relates to asset analytics, an on-premise solution requires notably more IT resources to implement and support, and in some cases, operational and engineering teams to be on-site at a machine in order to monitor, manage and respond to issues and alerts.


SaaS solutions are specific services that are delivered by a provider via the cloud. In this model, a company subscribes to a particular software that lives in the cloud. Many providers have adopted this model for delivering asset analytics solutions.


Common Hang Ups with Hosted Solutions

Our eBook, “5 Ways Utilities Can Plan a Better Future with Analytics,” outlines how SaaS solutions have become increasingly critical to modern asset performance management (APM) solutions. However, despite a rise in adoption of SaaS and other hosted solutions among many companies, others are slow to move away from on-premise solutions, largely for two reasons:

  • Security—for many, the idea of hosting critical data and applications outside of their own firewalls presents too much risk.
  • A perceived lack of visibility/control—hosting data off-site in a provider’s environment makes many companies feel uncomfortable due to a lack of a visibility and perceived lack of control.

While these concerns are valid, the truth is they’re increasingly getting outweighed by the far-reaching benefits of SaaS solutions.


Comparing SaaS and On-Premise

On-premise solutions do have their benefits. Because they’re rooted to a company’s environment, they enable teams with high degrees of visibility, control and security. This visibility and control can give teams an advantage when it comes to monitoring asset performance and responding to emerging issues quickly. The drawbacks are that these solutions often saddle companies with a heavy upfront implementation investment plus the ongoing costs associated with maintenance and upkeep.

These drawbacks are what have led many companies to adopt SaaS solutions. Rather than developing their own proprietary analytics solution in a private or public cloud, SaaS solutions enable companies to subscribe to an analytics solution developed and managed by a provider. These SaaS solutions present a number of benefits attractive to asset-intensive companies, including:

  • Allowing for anytime, anywhere access to data and applications
  • Enabling teams to configure, manage and update software from one central location
  • Eliminating on-site IT implementation and management requirements/costs
  • Increasing system reliability/redundancy with off-site backups secured by a provider
  • Leveraging security strengths of large cloud providers
  • Enabling rapid scalability of technology

Indeed, these benefits are hugely impactful for asset-intensive companies and are becoming increasingly critical to achieving data and analytics objectives. That’s why so many APM providers, including Atonix Digital, are leveraging a SaaS model to deliver their solutions.  You can take a closer look at the benefits of our cloud-based ASSET360 platform here.

photo for Matt Kirchner

As the leader of the Product Management and Customer Success teams, Matt is the voice of Atonix Digital. His unique and acute oversight of the market, as well as his training as a mechanical engineer, allows him to deliver value to all clients. From his team to his customers, Matt is committed to helping people achieve their goals.

Read more blogs by Matt Kirchner