Sales Analytics Software: Hosted or On-Premise Solutions?

The choice between using hosted and on-premise solutions for computing has become a point of contention across most businesses. This is no different for sales analytics software.

A large part of the debate centres on the security involved with storing sensitive data at an off-site location. However, hosted technology has become more secure, optimised and efficient, enabling cloud computing to stand on equal ground with on-premise solutions.

Top 5 on-premise vs. hosted considerations

The biggest driver of hosted solutions has traditionally been the ability to cut IT costs and the hassle of running an IT program by outsourcing. While the prominent feature of On-Premise solutions is data control; your IT team having complete control over the environment and how it is run. Yet both these technologies have developed dramatically and there are other features that need considering, here are the top 5:

1. Data backup

Hosted: Backup is automatic and no longer a hassle. Most hosting companies will keep second copies of your sales analytics data in different storage zones. This means that if there is a fault, there will be a further backup stored. With an easy to use interface data backup is no longer difficult or time consuming.

On-premise: If your IT team is good, your backups will be automatic. As for having double storage, this comes down to the price you are willing to pay to keep your data safe and hire the specialists needed to run it. An equivalent standard of backup safety for sales analytics software will be run at a higher cost for on-premise solutions.

2. Updates

Hosted: You can take advantage of the latest technology updates in both hardware and software with no added cost. Whether it’s the newest server designs, current software, or the most recent SQL, the advantage of up to date technology is quite simply, speed. This means faster to make, store and disseminate reports. A further advantage of the hosted solution in this case is that for your hosting fees you also keep up with the cutting edge of technology at no added cost.

On-premise: You are afforded complete control of which hardware and software updates to follow. You also have a team focusing solely on your system and its compatibility with any new sales analytics software.

3. Accessibility

Hosted: Your sales analytics are accessible from anywhere. Wherever there is an Internet connection you will have access to your sales analytics. You can just as easily reach your data and make a report from your mobile as you can from your office. There is also a higher level of data availability with hosted solutions offering a 99.9% up time. Meaning that there are very rarely unforseen problems that will interrupt your access to your data at crucial times.

On-premise: Your sales analytics data is located in your work area and that is the only place it can be accessed. This is percieved as slightly more secure because people believe it can’t be accessed illegally off-site. However in the maddening pace of the modern business world the ability to access data on the fly is becoming a crucial part of every business day. Those who don’t adopt flexible systems may find themselves lacking a competitive edge. If you want to read more on accessibility please see our blog from last week.

4. Security

Hosted: Cloud data is secure, many large companies are moving their sales anlytics and indeed whole storage systems to the cloud, as the incomparable flexibility matched with strong security policies has made the system too efficient to miss out on. Despite initial concerns and hesitations of storing data off-site most businesses no longer see this an an issue.

On-premise: Both the digital and physical security of your sales analytics data is entirely underyour control with this solution. This allows you to secure data to whatever standard you see fit. However it also means hiring experienced professionals if you want to keep the highest standard of security. The price of this security is not only monetary but also comes with the lack of anywhere access.

5. Versioning

Hosted: It is a lot easier for software vendors to perform data migration and roll out their new upgrades on a hosted system. Hosted systems are constantly kept up to date and are large enough to afford a smooth roll out of new software. This means your sales analytics software will continue to be fast and always available and you can also make sales reports quickly and be assured constant access to them.

On-premise: It is possible to control exactly which updates you do and don’t need. But you have to administer changes, often taking your system out of use while the process happens. A new reporting system will need to be able to fit into the existing IT parameters, requiring Server OS and SQL updates. It is also possible that costly hardware upgrades are needed for new software packages. This can cause trouble for your sales reporting abilities and may mean reports can't be created properly or even at all.