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There are essentially 3 ways in which software can be deployed today:
In-Premise: The software is deployed at the Customer location, with all required hardware, software, databases.
On-Demand/Software-as-a-Service (SaaS): The software is a multi-tenanted product that is hosted in a large data center for simultaneous use by multiple Customers.
Hosted: The same software as in the In-Premise model, is hosted at an external data center. The following table explains the major factors with each column showing the specifics for the type of deployment.

 

Sl

Description

In-premise

 

Hosted

 

On-Demand / SaaS

1

Hardware investments

Customer

 

Customer/Vendor

 

Vendor

2

Software infrastructure investments

Customer

 

Customer / Vendor

 

Vendor

3

Software app investments

Customer

 

Customer / Vendor

 

Vendor

4

Overall pricing

Up-front

 

Some up-front

 

Linear, by number of users

5 Software scalability
Customer needs to invest into hardware and software every time load increases
 
Customer or Vendor invests into hardware and software every time Customer user load increases
 
Vendor sets up infrastructure for tens of thousands of users, so Customer users always have good server response

6

App management

Customer needs to manage

 

Vendor manages

 

Vendor manages

7

User support and training

Customer /Vendor

 

Vendor

 

Vendor

8 Deployment time-frame After design/development   After design/development  
Basic functions are ready to be deployed right away. Much shorter time for development

9

Database security

Customer responsibility

 

Vendor

 

Vendor

10 Backup, restore, offsite storage Customer  
Vendor; operational excellence depends on vendor staff
 
Since this is part of the service offered, it is taken care of automatically

11

Robustness

Depends on Vendor design

 

Depends on Vendor design

 
Multi-tenanted, multi-threaded engines with high concurrency and reliability and built-in capability for high-performance

12

App security

Customer /Vendor

 

Vendor; depends on app design

 
Multi-tenanted, multi-threaded engines with high concurrency and reliability and built-in capability for high-performance
13 Integration to other systems
Very difficult; time consuming
  Very difficult; time consuming  
Integration with standard web services, XML services can be done fairly easily through standard mechanisms
14 Software Version
New versions have to be paid for separately
 
New versions have to be paid for separately
 
Software always at the latest version with no additional cost
15 GPRS / SMS integration Very difficult  
Possible if vendor has provided for in the design
  Very simple