SaaS vs. IaaS vs. On-premise

Abstract

Companies acquire software or make their own software depending on their resources and demands. As external software, Software as a Service (SaaS), has grown in breadth and depth, they have become increasingly popular. On-premise software can also still be favorable as it may be more secure, private or economical. Researchers have invested considerable effort in the study of companies adopting SaaS for enterprise resource planning (ERP) or customer relationship management (CRM) systems. There is little research on adopting SaaS for software other than ERP or CRM. This study aims to understand the factors a business considers when deciding to adopt SaaS. Furthermore, the study aims to ask relevant questions to the business in the current political climate with companies collecting more personal data than ever before. On May 25, 2018 the General Data Protection Regulation (GDPR) came into force in the European Union (EU) after being passed two years prior. This is a law on data protection and privacy for all individuals within the EU. The law has many implications for companies that collect personal data and, as a result, the software industry has had to reassess their data holding methods. The study seeks to clarify how companies will decide on SaaS regarding security and privacy with GDPR enacted. We conducted an online survey of 35 software professionals and observed there are some factors that affect whether a company will adopt SaaS solutions or onpremise solutions and GDPR is an influencing factor.