In today’s era of digital technology, businesses are making an endless effort to be in a digitally connected environment. Adopting enterprise-level solutions like online CRM, cloud-based ERP, Distributor Management system (DMS), etc helps businesses to centralize their data across the organization on a single platform and boost the efficiency of the organization as a whole. To keep up with the present-day demands, SalesBabu DMS – a unique offering for tracking secondary sales – is also available in SaaS.
While opting for a Distributor Management software, many companies face the challenge of choosing between deploying an ‘Online (SAAS)’ or hosting it ‘On-premise’. Companies have two options, they can either pay as they grow in size & structure or choose to go for a one time license to suit their business needs. Planning and choosing the right solution model requires considering many important aspects, including integrations, upgrade cycles, etc.
In a SaaS deployment model, you can make use of the benefits of the system without the need of investing huge upfront costs for maintaining servers, upgrading existing hardware, or employing a dedicated IT team. Today, the SaaS model has become a very common way of delivering many business applications as an alternative to the traditional on-premise software installations.
Though Software-as-a-Service (SaaS) deployment model comes with many benefits such as low upfront cost & maintenance, it might not be a viable choice for a large enterprise and can actually turn out to be a costly affair than one thinks, in the long run, owing to the recurring cost. Apart from the cost, there are many other factors also that businesses should evaluate before deciding which deployment option is best suited for their needs.
There are mainly two types of DMS: Software-as-a-Service (SaaS) and On-Premise.
SaaS DMS is a subscription-based service that is hosted by a third-party vendor. This means that businesses don’t need to install or maintain any software on their own servers. SaaS DMS is typically easy to set up and use, and it can be a good option for businesses that are looking for a low-cost, scalable solution.
On-Premise DMS is a software application that is installed on a company’s own servers. This gives businesses more control over their data and security. However, On-Premise DMS can be more expensive to set up and maintain than SaaS DMS.
| Feature | SaaS DMS | On-Premise DMS |
| Cost | Lower upfront cost, subscription-based pricing | Higher upfront cost, perpetual license |
| Setup and Maintenance | Easy to set up and maintain | More complex to set up and maintain |
| Scalability | Easily scalable | Can be more difficult to scale |
| Data Security | Good data security practices are essential | Businesses have more control over their data security Export to Sheets |
Read More – 10 Phases for Successful CRM Implementation
Some of the pros of both the deployment model that one should keep in mind while making the decision are mentioned below –
Pros of Saas DMS:
Lower upfront capital investment:
Lower upfront capital investment is one of the most important benefits of deploying a SaaS DMS. SalesBabu’s cloud-based DMS (SaaS) works on a subscription-based pricing model that doesn’t involve any extra cost of purchasing or maintaining servers, upgrading hardware & maintaining an in-house IT team.
Support & Maintenance:
SalesBabu’s DMS on SaaS requires minimal IT dependency for application maintenance. Another benefit of SaaS DMS is that no annual maintenance charges are involved which saves massively on the ownership cost.
Quick set-up and deployment:
SalesBabu’s cloud-based DMS is relatively faster to implement as it’s a ready to use solution which has already been pre-installed and configured in the cloud. You need to simply log in to the DMS application link and it’s ready to use.
Effortless upgrades:
Upgrades are done from our end centrally for SalesBabu DMS enabling our customers to enjoy a user-friendly cloud-based interface for accessing applications and services without the need for installation.
Easy to access:
Online distribution management system (DMS) can be easily accessed across various devices with a browser and internet connectivity. In another way, your team can access web-based DMS applications anywhere and anytime making them highly accessible and flexible for the present times.
Scalability:
This feature plays an important role in today’s business. The customer can take the advantage of this feature in case they have budget constraints in the beginning. For a company, as the business & no of users grow, SaaS DMS can be easily and quickly scaled without much effort.
Read More – Distributor Management Software in India’s FMCG sector
Pros of ‘On-Premise’ DMS Deployment:
Full control:
A business opting for an on-premise DMS, the dedicated application gives them a higher degree of control & ownership over the data.
Greater Data Security:
The companies deploying on-premise DMS enable them to keep their valuable data and information safe within their organization. The on-premises DMS software offers control and flexibility that allows companies to implement a variety of security measures to further protect their services from attacks.
Low Cost of Ownership for large organizations:
For businesses having a large distributor network, subscription-based monthly pricing turns out to be a costly affair in the long run for them. On-premise DMS for such businesses makes more sense as they just have to pay one time per distributor.
Software customization:
Depending on the license of the software and its proprietary rights, the on-premises application can be easily customized, tweaked, and configured as per the specific requirements of the businesses which are not possible in the case of SaaS deployment.
Smooth Integrations:
Over the intranet, integration can be relatively simpler. Data transfer between systems will be faster. 15-20 percent of attempted SaaS deployments are unsuccessful due to serious problems with data integration.
Take Away
Final objective – It is very important for businesses to evaluate the long-term cost involved in running a Distributor Management Software (DMS), and at the same advanced DMS is equally important. Thus, Software-as-a-Service (SaaS) is a good starting point for companies that have limitations with upfront capital investment. Cloud-based DMS can be quickly set-up and deployed and companies do not have to think about its maintenance and upgrades.
