Cloud Software or Installed Software?

Cloud or installed?

As web applications have become more popular in their cloud mode, companies have begun to consider which option is the most appropriate for their needs: Cloud or installed on my servers?

This is one of the main questions that people in charge of the software selection process ask themselves today.
The question is not trivial and, as in many other cases, the answer will depend on various factors since the two options are completely valid and it will simply be necessary to see which one fits best in each case.

Certainly, each model has its advantages that tend to be inconvenient if viewed from the opposite perspective, as we can see in the following table of advantages of each modality:

Control over the entire system/dataNo license fees
The data is stored and managed directly by the user companyNo costs or
infrastructure requirements (servers,
communications, …)
Requires own resources to
manage the system
Does not require resources for
technology administration
The initial investment is higher
but pays for itself over time
The solution provider does the
the heavy lifting of technology administration and bears that cost.

We could find a long list of factors to take into account in order to determine, at a generic level, which option is the most valid in each case, however, we are going to restrict these factors to those more related to Help Desk and Management Software. TI with the goal of helping those customers who are asking this question right now.

The 10 factors to take into account when choosing the modality of contracting a help desk software

These are the 10 main factors to take into account to select the type of hiring a help desk software.

1. Infrastructure

In this case, we must consider whether our organization has the necessary infrastructure to install, administer and maintain help desk software operating under the necessary service conditions.
If so, we can choose between the two options: Cloud or Installed locally. Otherwise, it would be advisable to opt for the cloud option.

2. Human resources (technological)

Regardless of whether we have the appropriate technological infrastructure, we must ensure that we also have the human resources to service and manage that infrastructure. In many cases, companies usually have these resources, but it is also true that their availability to serve new services is usually limited, so both existence and availability must be taken into account to make the decision between cloud or locally installed.

3. Recipient of the service

From the point of view of the decision between cloud or installed locally, it will be important to take into account if the recipient of the service or end-user of the help desk software is going to use the solution from the same network where the software is installed (normally in the case of internal users of the company) or if their access will be through the Internet (normally in the case of support to clients external to the company).

In both cases, we can opt for both options, although statistically when support is to be provided to external clients through the Internet, the most used option is usually the cloud and when the support is for internal users, the most selected option is internal hosting.

4. Security

Cloud solutions usually offer very high levels of security both from the point of view of availability and access control and data control.

In the case of ServiceTonic cloud, its infrastructure is located in a high availability center, using fault-tolerant servers and systems that are monitored 24x7x365, providing availability levels greater than 99.95% of the time.

However, in some cases, there will be companies that, due to their own security policy, will require certain applications to be totally under the control of the company itself. In these cases, the selected option is own accommodation.

5. Investment

The need to make an initial investment in the self-installation option may be an important factor in opting for the cloud option since the cloud option normally does not require an initial investment and its payment is usually through monthly, quarterly or annual installments that include everything you need to use the software.

However, if you have the capacity to make the initial investment associated with the purchase of a license and the technical resources necessary to start it up, the local installation option may be more profitable in the long run.

6. TCO (Total Cost of Ownership)

The TCO or Total Cost of Ownership is usually the hidden factor that is not taken into account when making the decision whether to acquire and host software or contract it in cloud mode.

However, the TCO is the most relevant factor from the financial point of view that will allow us to determine the real cost of ownership of the software in a period of time.

The TCO does not only include the direct costs such as the license, the monthly fee or the cost of a server, but it also includes the associated costs of operating the service (administration, communications, backup systems, training, etc.).

Calculating the annual TCO of each of the options with a 4-year forecast, for example, will provide a very clear idea of ​​which option is economically more beneficial for a company.

7.Software configuration

There is some help desk software that is only available in cloud mode or installed on the client’s servers. For those solutions that allow both options, as is the case with ServiceTonic, it is also necessary to take into account whether the cloud mode will allow the same level of configuration as the installed mode.

Specifically, in the case of ServiceTonic, as it does not require any type of programming to configure the software, the parameterization level is the same configurable in both cases.

8. Integration with other systems

In help desk software, its ability to integrate with other systems is increasingly important. Whenever we need to exchange data between two applications, we need some kind of connectivity between them.

Currently, this is not usually a problem since the use of the Internet provides us with the channel so that these applications can dialogue regardless of where they are.
Despite this, it is important that we take into account with which applications (corporate email, user directories, management applications, corporate databases) our help desk software should be integrated so as to ensure that the selected option, cloud or installation local will allow you to do so.

9. Duration of the project

This factor traditionally opts for the cloud option in the event that we are dealing with a project of short duration or limited time, or for the local installation option in the case of a long-term or unlimited project.

10. Solution Availability Time

Another factor to take into account is the time in which we need to have the help desk software operational. In this case, the cloud option usually provides more advantages to those companies that require a quick start-up of their solution since, in this format, availability is usually practically immediate.

Which option is the most suitable?

Taking these 10 factors into account, we will be able to determine which option is the most suitable for my company or my service.
Contact ServiceTonic if you want us to help you in the decision process of your help desk software in cloud mode or installed on your servers.

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