Monday, February 7, 2011

Workforce Management Software Comparison - Cloud versus Installed Software

The following section compares the cloud- based and the on premise software model in more detail and illustrates how the different models would impact the cost, implementation, usage and success of the Workforce Management solution in your organization:

Set up and implementation
Cloud: Fast set up, vendor creates new account. Users access the solution through a web browser.
On Premise: Takes time to purchase, install and configure both the hardware and software.

Upfront investment
Cloud: No upfront investment for software/hardware. Subscription fee typically includes support, maintenance and upgrades.
On Premise: Large upfront investment for hardware and software, installation, configuration and implementation.

Operating costs
Cloud: Shared services infrastructure dramatically reduces the cost for operating and maintaining servers.
On Premise: Running your own server operation, including back ups, maintenance, upgrades and hardware replacement result in higher costs.

Scalability and performance
Cloud: Multi-tenant architecture and "elastic cloud computing" platform allows for maximum scalability of data-intensive scheduling scenarios.
On Premise: The purchased/installed server(s) in your environment limit the scalability and performance of installed software.

Software upgrades
Cloud: Automated upgrade procedures ensure customer are always on the latest version without the need for manual upgrade procedures.
On Premise: Upgrading software is often postponed due to the vast effort and costs. New features to improve scheduling won’t get implemented.

Implementation success
Cloud: Vendors have a financial incentive to make customers successful, solve issues and maintain them as a long term customer.
On Premise: High upfront license fees might lower motivation for vendors to help make the solution work and solve your issues; software may not get fully utilized.

Usability
Cloud: The new web-based user interfaces of cloud-based solutions typically focus strongly on usability and are often easier to use and faster to learn.
On Premise: Traditionally, older client-server software was not optimized for usability, making it more difficult for the user to take advantage of the software features.

Investment risk
Cloud: Lower risk - if the customer is not satisfied with the solution they might be able to cancel the agreement or switch to another vendor.
On Premise: Higher risk through a huge upfront investment that "locks" customer in, even if the solution ends up not meeting the their needs.