Cloud-Based or On-Site Software: 5 Reasons SaaS Is Best For Energy Management

On-premise software isinstalled locally on a company’s own servers

Cloud-based or SaaS software ishosted on vendor servers and accessed via web browser

Today, more enterprise software purchasers (around 69%) are going with software-as-a-service (SaaS) offerings to benefit from the “pay-as you-go” model. That means customer support and upgrades are usually included as part of the overall package, and you can cancel your subscription without penalty should you decide the software isn’t right for your project.

Still, some some legacy companies (such as utilities and financial institutions) prefer the in-house option offered by traditional enterprise software for 5 main reasons, that are actually myths!

Let’s break down the pros and cons of each:

1. Security: “With on-premise aM&T, my data is safer and way more secure!”

Security and data privacy are among the most common concerns with cloud computing, but in reality your building data is only as secure as your security protocols, cloud-based or not.

Data storage and backup is a huge concern, and with on-premise software usually requires serious manual intervention. Would your on-site data infrastructure built from scratch be able to handle the same risks as a specialised external data centre with built-in, fault-tolerant architecture?

Plus, custom-installed software requires a watertight disaster recovery plan. What happens if your on-site server fails? Do you have the time and resources to test it at least once per quarter? With cloud-based EMS, data is replicated in real time and on multiple servers to guarantee maximum availability. Check out this real example of status.dexcell.com where you can see the last 10 months of uptime records for DEXMA’s insertion server.

In any case, it’s a good idea to ask your EMS provider these and other questions about their security protocols and privacy policy.

2. Customisation: “I need to have my solution ultra-customised and branded: no white-label solution is possible.”

An on-site energy monitoring solution can appear more attractive in terms of design, but overly-customised solutions are much harder to evolve and update, and more expensive to maintain. Plus, implementation time can be significantly delayed, increasing time-to-market by orders of magnitude.  

Besides, top energy SaaS solutions are customisable too! At DEXMA we pride ourselves on our ability to offer custom branded versions of DEXCell Energy Manager.

3. Lock-in: “A SaaS solution will chain me to the provider for all eternity!”

On-premise systems suffer from a different and infinitely more dangerous kind of lock-in: it’s called obsolescence. Just like a brand new car that starts depreciating in value the day you drive it home, on-premise systems start becoming obsolete the day they are installed. The major advantage of SaaS energy analytics here is the pay-as-you-go model, which means you can lower risk and switch providers if you decide the solution isn’t right for you – and the data is still yours.

4. Scalability: “Sounds great, but if my project only has 5 buildings, why should I care?”

Even with a smaller portfolio of buildings, the SaaS approach to energy management offers more capabilities and fewer headaches than on-premise EMS systems in 3 important ways:

• Your energy needs are likely to shift over time. As your building project expands or contracts in scope, your SaaS software adapts along with it, being 100% flexible. For example, DEXMA’s cloud-based aM&T solution, DEXCell, allows you to upgrade your account with as many data points as you need on-the-go, whenever you want. You can also get rid of data points you don’t need anymore. Learn more about the data points concept here.

• SaaS solutions can be used from anywhere there is an internet connection, which translates to higher adoption rates and a more flexible user experience overall.

• Most cloud systems enable easy mobile accessibility, whereas on-premise deployments usually need a third-party client to communicate between a mobile device and the on-site installation by means of a virtual private network (VPN).

5. Cost: “You can’t fool me – SaaS is more expensive in the long run!”

Looking at the Total Cost of Ownership (TCO) of the project is an essential way to understand the financial implications of choosing an on-premise or SaaS energy management platform for your building project. On-premise systems require more installation, maintenance and support than cloud-based systems, and thus incur higher costs overall (starting from €100K per project).

While a SaaS EMS does require some initial costs, such as hardware, after that you only need to pay the monthly fee that fits your needs (see DEXCell pricing plans to give you an idea). Moreover, cloud-based energy management software reduces your investment risk by a factor of 10, since you don’t need to pay a high cost license upfront and avoid hidden extra fees for maintenance and updates. The major benefit of going with a SaaS model is that you only pay for the software you use, with maintenance and updates already included in your monthly subscription.  

Another aspect of costs to consider is time-to-market. SaaS deployments are implemented much faster – with DEXCell, for instance, you can configure your account and have it up and running in just a few clicks. On-premise systems can take significantly longer to install, even if your organisation has more control over the overall process.

Still not sure which deployment model is right for your sustainable building project? Book a consultation with a DEXMA energy management specialists who can help you determine your needs, and get you a short list of options that can best fulfil your project's energy efficiency requirements.

Already convinced that SaaS is the way to go? Then it's time to take our cloud-based solution DEXCell for a test drive. Access your free demo here.