The SaaS software segment is booming undoubtedly. Many startups are entering the segment with great hope and many established firms are adding servers frequently to handle the booming user load. New SaaS firms might have a lot of doubts about choosing the right hosting company and the platform. That’s why we’re here to help you with the process of decision making.
The main confusion
SaaS companies have a lot of options to choose the best from. Namely, On-Premise hosting, Dedicated Servers, & Cloud.
The best option out of these varies from companies to companies depending on their initial investment, need for consistency, and their budget for recurring costs.
If you’re a beginner, you might be wondering what these solutions mean exactly.
On-Premise hosting means, hosting your data yourself within your offices without the involvement of third-parties. At the same time, your executives are solely responsible for managing the complete network, components and etc.,
Dedicated Server, on the other hand, means that you’ll be provided with remote access to servers. The facility, network, components and security of the servers are taken care of by the service provider.
Cloud is also very similar to a dedicated server. The service provider itself manages everything like facilities, networks, and components. The major difference between Cloud and Dedicated server is the fact that you can rent a small server in Cloud and in most of the cases the billing will be on an hourly basis whereas dedicated servers have a lot of resources (and obviously isn’t small) billed on a monthly or yearly basis.
Having a lot of options might sound great but it might also confuse you a lot. Let us see which hosting is the best for your startup SaaS company.
On-Premise hosting infrastructure deployment takes a lot of time. A lot of time doesn’t mean a day or week. It might take anywhere from few months to even years to set up the best in class infrastructure that is reliable.
The network needs to be managed by your own in-house experts. There’ll be no one to assist you with the network management unless you outsource your on-premise hosting to a third party. You’ll have to have your well-trained staff at your office around the clock to make sure everything runs optimally.
Having an on-premise infrastructure is not as simple as counting 1, 2, 3. You’ll have to put in a lot of effort into the initial setup. Like to say, you might need redundant (2 or more) network connections, power supplies and alternate arrangements (ie., Generators and UPS) to overcome difficult situations like power shut down. It’s obvious that it will take a lot of time for you to check the feasibility of such facilities in your offices and will consume a lot of time to negotiate with your network and power suppliers.
The investment required for operating an in-house hosting infrastructure will always be higher. You have to procure your network devices, server components, server chassis, racks, fire suppression systems on your own. In most cases, the investment required to set up an in-house hosting environment for an average corporation would cost somewhere around $500,000 to $5,000,000 and it is completely based on the type and scale of the infrastructure you’re planning to have.
Operational and recurring costs for a larger deployment of servers in on-premise infrastructure would be much lower when compared to Cloud and Dedicated solutions. You’ll have to pay for your network, power, and human resources on a recurring basis.
Advantages of opting for On-Premise Hosting
- Increased physical data security, as the data, is hosted safely within your office premises.
- Ease of attaining compliances like HIPAA
- You and your staff alone can handle your data, mo middle man in between.
- Cost-effective in the long-term if done in the right way.
Disadvantages of opting for an On-Premise Hosting
- You need highly skilled staffs unless you outsource the operations
- Much higher upfront investment when compared to other solutions
- It takes a lot of time and resources to set-up an infrastructure.
- Needs a lot of technical expertise and cybersecurity skills to protect your network from network-based attacks
- You have to know what you’re doing. If done wrong, On-Premise hosting would be more (up to 1000%) expensive than Dedicated and Cloud
The best solution for those who…
- Wants to attain compliances easily, and
- Can do a lot of investment up-front and wants to save on a long-term basis.
Dedicated Servers & Cloud
The dedicated server deployment time varies from company to company. If you buy dedicated servers from us, deployment time would be 4 hours. Within 4 hours, you’ll have your dedicated server in hand, in most cases. Cloud, on the other hand, It takes around 2-5 minutes for deployment.
A to Z of networking will be managed by the dedicated server provider or by the Cloud service provider. Therefore, You need not worry about the networking part.
Low level of effort needed. Almost all backend parts will be managed by the dedicated server provider itself. All you need to do is just configure the server’s software and take it into your production.
As the procurement of servers, networking components, racks are acquired by the service provider itself, you need not pay such a huge amount upfront as you do for on-premise hosting. In other words, the bulk upfront payment is not needed when you choose a dedicated server or cloud.
Operational costs of both Cloud and Dedicated servers might vary based on the scale of your setup. If you rent more servers, the more you’re going to pay. But on an average basis, the cost would be more than affordable.
Advantages of Dedicated Servers
- More reliability compared to Cloud.
- Dedicated servers are single-tenant service. Which means you are not going to share your compute resources with anyone else.
- You’ll have an extra hand on the resources. You can create VMs from the server if you need any.
- No need for clustering and load balancing as a single server itself can have up to 96 vCPU and a TB of RAM easily. Saves a lot of time poured into load balancing and clustering sort of things.
- Higher performance and stability compared to the cloud.
Advantages of Cloud
- You can hire or rent tiny servers.
- Deployment time is too low. You can get a server online in just a minute or two.
- Extensive API to automate server deployments
Disadvantages of both Cloud & Dedicated Servers
- Dedicated Server takes some time to setup. It needs a lot of time to configure or cluster servers as everything needs to be done manually. While with Cloud, you can automate clustering tasks and it takes comparatively lower time but still needs human effort.
- If not secured in the right way, both are subject to security vulnerabilities
What do we recommend?
If you’re a startup, having lesser than 1,000 users who proactively use your application, You can start using the Cloud server. They are cost-effective and at the same time, you’d be able to rent small servers.
If you’re a medium enterprise, having more than 20,000 to a few million proactive daily users, You can go with a Dedicated Server. Dedicated servers save a lot of costs when comparing to the cloud. As bandwidth costs are ridiculous in the cloud, it is wiser to choose dedicated servers as this simple decision would save more than $10-25 grand each and every month.
If you’re a large scale enterprise, it is wiser to invest in your own infrastructure. It will help you to save a lot of money in the long run.
You’re not a technical person? or Looking forward to outsourcing your HostingOps to some experts? We’re here for you! We provide all services including Dedicated Servers, Cloud and On-Premise setup and maintenance services. Feel free to consult with us before taking the big decision. You can always reach us out by navigating to Contact Sales or by emailing us at [email protected]
Have any questions or suggestions? Do let us know in the comment section.