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SaaS

SaaS vs On-premise: which model for SMEs?

26/08/2026

Comparative analysis of the two approaches to help decision-makers make the right choice based on technical and budget constraints.

The choice between SaaS and On-premise is one of the most frequent in SME digitisation projects. Both models have their advantages and drawbacks – and the right choice depends on your specific situation.

The SaaS model

SaaS (Software as a Service) refers to an application hosted in the cloud, accessible via a web browser. The user pays a monthly or annual subscription.

Advantages

Drawbacks

The On-premise model

On-premise refers to an application installed on the company's servers.

Advantages

Drawbacks

Our recommendation for SMEs

For most SMEs, SaaS is today the most suitable option, especially for non-critical applications. It offers a favourable cost/benefit ratio and rapid deployment.

On-premise remains relevant for highly regulated sectors (health, defence, finance) or applications that handle particularly sensitive data.