Build vs Buy: Why On-Prem Matters

David Hallinan
Apr 9, 2021

Historically, delivering on-prem software has meant building bespoke, manual processes for every customer environment; costing time, resources, and money. Thanks to new, off-the-shelf solutions, delivery, and management have gotten easier than ever. But is buying the right move for your company? In this blog series, we’ll help you determine if you should build or buy. 

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Build vs Buy

Part 1: First Things First, Why On-Prem Matters

SaaS continues to be a bright shiny object, but when it comes to the enterprise, the data tells a different story. In a recent report, Synergy Research Group noted that, “While in many ways the SaaS market is now mature, it still accounts for barely more than 20% of total enterprise software spending and therefore remains small compared to on-premise software…” In 2020, annual enterprise software spend for on-prem software totaled nearly $400 billion, while SaaS spend hovered around $100 billion.

Saas vs on-prem

Safety First

Concerns about data loss prevention and regulatory and compliance requirements mean that many companies have never been able to fully embrace cloud solutions. Companies with federal and financial customers need to minimize the potential for data leakage in key systems. Other companies have external regulatory mandates that would make cloud solutions difficult––for example, companies in Germany, Russia, and China typically dismiss SaaS because of their cross-border data flow restriction laws. In order to have more control and continuity, many enterprises have been moving internal workloads to IaaS to create private spaces where their apps can be secured away from the public internet.


The On-Prem Evolution

Until recently, designing, deploying, and maintaining bespoke on-premise software was a laborious and time-consuming solution for the end-user. Now, thanks to the integration of cloud-native technologies (things like containers and Kubernetes), on-prem delivery and management are becoming a much happier experience for both software vendors and their customers. Add to that the enterprise’s growing concerns about security, compliance, and control in the midst of an increasingly hostile cloud landscape, and the picture becomes even clearer: on-prem is making a big comeback (even though it never really left).

replicated box

DIY or DIBuy?

When it comes to delivering enterprise software on-premise, the big question is: should you build a solution or buy it? Here are some important considerations to weigh the pros and cons of each option.


In the upcoming posts as part of this series, we’ll explore each one. Hate to wait? Download our free eBook now to read it all and learn why on-prem matters.