In the past, introducing new software was usually a clearly defined project involving three steps: purchasing licenses, installing the software, and getting started. Today, however, the situation is more complex. Modern software implementation primarily revolves around two aspects: flexibility and security.
These aspects determine how flexible processes can be designed, how secure company data remains, and how well teamwork functions. Companies today have more options than ever before, whether on-premises, in the cloud, or hybrid. This diversity, while offering more options, also makes the decision more challenging.
What Does Implementing Software Mean Today?
Today, introducing software means more than just installing a program and training employees. It’s about integrating a solution into a company’s existing and often complex IT landscape. This requires considering interfaces, preparing for data migrations, and defining clear operational and maintenance responsibilities. Another crucial question is whether a company wants to retain full control over its data and infrastructure or outsource that responsibility to a provider.
Issues such as data security, traceability, and compliance are central, particularly in regulated industries like finance, healthcare, and public administration. Even medium-sized companies are paying increasing attention to how and where their sensitive data is processed.
On-Premise vs Cloud
Deciding between on-premises and cloud software is one of the most important decisions when implementing a new software solution. More and more manufacturers are exclusively offering cloud solutions, meaning customers rarely have the option of running software locally. This can be problematic for companies that do not want to outsource their data to international IT corporations’ data centers.
With an on-premises solution, the software is run within the company itself. This provides the most control over data and systems, making it easier to comply with internal security guidelines. However, it also means that the company’s IT department is responsible for operation, updates, maintenance, and reliability.
When opting for the cloud, responsibility is transferred to the provider. Cloud solutions are easily scalable, enable quick start-up without significant hardware investments, and reduce technical effort. However, this creates dependencies. Where is the data stored? What security standards apply? How reliable is the provider in terms of availability and support?
Models that leave both options open are particularly interesting. Companies can then decide whether to use software on-premises or in the cloud and, ideally, switch flexibly between the two.
Should You Buy or Rent Software?
In addition to the operating model, the financing model is also crucial. Traditionally, software was purchased. Companies invested in licenses and signed maintenance contracts to receive updates and support. The advantage of this model is investment security because the software, or the right to use it, belongs to the company. This is not only cheaper in the long term, but it also means that the software can be used without a maintenance contract. Data access remains possible even after the maintenance contract has been terminated. Disadvantages of this approach include high initial costs and low flexibility if software requirements change at short notice. Additionally, the investment must be recorded as a fixed asset and depreciated over several years, which can limit financial flexibility further.
With the rise of Software-as-a-Service (SaaS), subscription models have become popular. With this model, companies pay monthly or annual fees to use the software. One advantage of this model is that rental fees are considered ongoing business expenses immediately and do not have to be depreciated. Additionally, rental models can adapt more easily to changes in user numbers or requirements. However, there are ongoing costs, and the software remains the provider’s property. If the rental agreement is terminated, access to the software and stored data ends. Access to the software, as well as the data stored in it, is then no longer possible unless precautions have been taken to back up the data.
Today, many companies opt for a mix of both models
SaaS and Data Security: What Companies Should Pay Attention To
SaaS offers rapid availability, automatic updates, flexible scaling, and reduced IT overhead. Nonetheless, companies should closely examine providers before making a decision.
The most important question is where the data is stored. Are European data centers or servers outside the EU used for storage? Do they meet the requirements of the GDPR? How transparent is the provider regarding security standards, certifications, and data availability?
These answers significantly impact the security and reliability of a SaaS solution in everyday business operations.
microTOOL: Software „Made in Germany“
In an era of increasing rates of cybercrime and AI-powered tools trained with large amounts of data, many companies are rethinking their approach. Safety is becoming a higher priority than flexibility.
With microTOOL, you have the choice. Our software solutions can be used in your own infrastructure on-premises or in a cloud environment. With our licensing models, you can purchase the software and secure it for the long term with a maintenance contract. At the same time, you have the option of renting licenses flexibly or using a SaaS model through our partner, SVA.
As a German software manufacturer with over 40 years of experience, we develop our products in Berlin. Our support team is available to assist companies in German and English with implementation, daily operation, and long-term development.