With cloud computing and SaaS, users now have other ways to use software: Instead of buying the corresponding program, installing it on your own PC and then using it, you decide on a subscription. A provider hosts the software in a data center and offers users access to it. Your own PC or laptop only establishes a connection via the browser, the actual computing power takes place in the data center. Your own hardware therefore only needs to provide internet access.
Not only is the hardware maintained by qualified personnel, but also the software is always up to date. Updates are installed without the user needing to put in any additional effort and are available immediately. Since the software is independent from the PC, you can access the program from anywhere – you are neither limited to the device nor to the location. Without internet access, nothing works, which is a big disadvantage of cloud software. This can be particularly critical for professional users and companies: If the work suffers due to a poor internet connection, this is unacceptable.
Professional software can be expensive. Although on-premises solutions are usually paid for with a one-off purchase, it is not always possible for smaller companies and founders to make such a large investment. In addition, as the business and its requirements grow, the program you buy may not fit your needs after a while. With most SaaS providers, users can choose between a monthly or annual payment, allowing them to switch to a different product at relatively short notice. Additional functions or additional employee access can usually be booked easily and inexpensively.
Choosing cloud software means trusting the provider and allowing them to have the control. Trust is so important because sometimes very sensitive and business-related data is stored in the provider's data centers. If the cloud software manufacturer doesn’t take data protection seriously, the consequences could be catastrophic. Handing over control is also potentially problematic: If the provider decides to discontinue the offer or even to pause for maintenance work, this failure can have negative consequences for the users.