Delivery Models for IT and Their Pros and Cons - The Blytheco Blog
Delivery Models for IT and Their Pros and Cons

Delivery Models for IT and Their Pros and Cons


So many of our clients are asking us about Cloud deployment in some form or fashion. We are finding a lot of variations in terminology, with some vendors calling one solution “hosted” while another says “cloud” or “Saas”.

In an effort to help clarify some of the terminology, we put together a handy chart that highlights some of the most common delivery models for technology today.

Want to challenge our definitions, pros and cons? We’d love your feedback!

For details about comparing ERP systems side-by-side, including not only deployment options, but also functionality, demographic, and pricing, check out our “ERP Comparison Guide“.

Deployment type
Characteristics
Payment Method
Pros
Cons
Example
Infrastructure as a service, IaaS (or Hardware as a Service, HaaS)
Organizations outsource equipment, including servers, networking components, and hardware to a service provider who owns and maintains it. Can be on client’s premise, or hosted for clients.
Subscription
Cost savings in initial start-up, scalability, outsourced responsibility for IT support and maintenance, often quicker to get up and running.
Security considerations, ongoing software management is often still a factor, requires reliable internet connection.
Dell, data centers
Platform as a service, PaaS
PaaS providers offer a platform including operating systems, databases, and web servers for users of purchased or internally developed applications.
Subscription
Cost savings on infrastructure, operating systems, and systems support; scalability, ease of maintenance, fast to get up and running.
Potential security and downtime considerations, requires reliable data centers, flexibility may not meet the needs of users whose requirements evolve rapidly.
Windows Azure, Google App Engine, Amazon Web Services
Software as a service, SaaS
SaaS providers install and manage their software applications and associated infrastructure for their clients. Users access applications from a browser on a desktop, laptop, tablet, or smart phone.
Subscription
Lower start-up costs, infrastructure hardware cost savings, scalability, low maintenance, fast to deploy, more capabilities available than many single businesses could afford to purchase on their own.
Security and downtime considerations, requires reliable internet connection.
NetSuite, SugarCRM, Gmail, Facebook, LinkedIn
Hybrid
Users have some applications running on in-house servers and use some applications in the cloud.
Subscription, one-time payment, services costs, annual maintenance fees.
Allows the best of both worlds: on-premise for more security- sensitive applications, and cloud for applications that require a lot of database updating and maintenance, i.e. sales tax jurisdiction tables.
Security considerations, software management is still a factor, requires reliable internet connection. Multiple databases can create issues, when trying to maintain version compatibilities between different systems.
Sage 100 ERP with online sales tax management, automated shipping, credit card payment processing solutions, EDI processing services, mobility access applications in the cloud.
Vendor-hosted`
Software is installed in a data center, accessed over the internet from a remote location and managed by a vendor.
Upfront license purchase may be required; subscription fees for the hosting service.
User owns the software and data; fast to deploy; low maintenance.
User does not control the environment.
Sage 100 hosted via ASPs .
Private Cloud
Companies establish data centers within their own firewalls, and use virtualization on the client end for access.
One-time payment, services costs, annual maintenance fees.
Greater data and security control.
Significant upfront investment. Requires in-house IT staff to maintain.
Sage 100 on Applianz servers.
On-Premise
All IT infrastructure, hardware, network, and associated infrastructure software, along with application software are on-site at the user’s facility.
One-time hardware, software payment up-front, implementation services costs, annual phone support and maintenance fees.
Greater data and security control.
Significant upfront investment. Requires in-house or outsourced IT services support to maintain.
Sage 100 ERP traditional workstation or Client-Server platform installations

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