It is generally accepted that working in SaaS is easier and cheaper, which is why small companies choose it. In-House (on-premise), preferred by large organizations, banks, insurance companies and call centers with a large flow of incoming and outgoing messages, due to the possibility of more complete control over data security.
What are the main differences between the solutions?
The main difference between cloud and on-premises is where the software and data are stored, who is responsible for maintaining, updating, preventing and remediating major incidents.
When communicating with a client, companies ask for phone numbers, bank card details, passport data, that is, confidential information that is prohibited from transferring to third parties. In-House solution allows the company to store data on its servers, to fully control it, which prevents information leakage, provided a properly organized security system, while in SaaS, the provider organizes the security system. Despite the fact that a cloud solution can be quite reliable and secure, large companies that store confidential customer data prefer to have complete control and store it on their servers.
As for the price, SaaS looks cheaper at the entrance, because you do not need to buy / rent a separate placement, expensive equipment and hire staff. But for its use throughout the entire time, a fee will be charged. In addition, the provider imposes restrictions on the size of the database and the number of transmitted messages.
Another important factor is speed and stability. Large flows of messages with clients put a high load on the servers. In-House placement allows flexible management and high performance to deliver quality customer service.
When introducing In-House, all restrictions are set by the services of the company based solely on its needs. Creating your own data center requires a lot of effort, but as a result, it will allow you to achieve maximum performance in working with data, their security and service functionality, and in the long term, the investment will pay off.
Each of the accommodation options has its own pros and cons, so the choice of the optimal solution, first of all, depends on the business objectives of the company.