What's 🔥 in Enterprise IT/VC #237
We live in all SaaS world but why on-prem rising and what's modern on-prem?
Ed Sim | May 15 |
What's 🔥 in Enterprise IT/VC #237We live in all SaaS world but why on-prem rising and what's modern on-prem?
I remember 10 years ago when enterprise founders would meet with the largest companies and many were still not ready for SaaS and the ☁️. The smart founders would continue to push the envelope to find the early adopters who were willing to go for the more efficient model and avoid doing anything on-prem at all. Despite the fact that SaaS rules, there is still tons of software out there that is 100% on-prem and this week AWS released AWS SaaS Boost as an open source reference environment to help software vendors (ISVs) easily and quickly migrate their existing on-prem solutions to a SaaS delivery model.
So if SaaS has won, why is the demand for on-prem software rising? (see report from Replicated with Dimensional Research surveying over 400 professionals who work at commercial enterprise software vendors) And how should startups handle the dreaded, “I’ll buy your software if you deliver it on-prem” request? Should they keep saying “No” to the large enterprise customers or is there another more modern way? Let’s dive deeper. If you see from the above chart, most vendors selling software on-prem still need at least a week or more to deploy their solution meaning high cost of doing business. In addition, as a company scales and grows, they end up having to manage hundreds or thousands of ❄️ meaning each on-prem solution is custom for each customer. This is why most SaaS vendors will say NO to anything on-prem as it is so much more scalable and easier to write once and deploy to the cloud versus install, help maintain, and troubleshoot lots of on-prem installations all with bespoke environments. That is until Kubernetes and Replicated came around to help “unlock the opportunity for modern on-prem software allowing vendors to deliver and manage Kubernetes apps anywhere.” 50 of the Fortune 100 already consume software from vendors who deliver their on-prem version via Replicated. You can find more here on their open source project, kots (kubernetes off the shelf) on how you can deliver a kubernetes application for enterprise installation as a modern on-prem app that comes will all of the enterprise ready bells and whistles like SSO, RBAC, audit logs, change management, etc.
Using Replicated, an independent software vendor can still maintain one code base and not several custom versions depending on each customer, thus removing the high cost in delivering and installing software on prem and managing and maintaining different software versions over time. The net result is that rather than shipping the data to the app, Replicated ships the app to the data . Truly though, the debate about SaaS vs. on-prem really should not be one as it’s all just cloud native leveraging Kubernetes. Keep an eye out for this over time as security, data protection, and privacy drive more “on-prem” growth in the years to come. As always, 🙏🏼 for reading and please share with your friends and colleagues. Scaling Startups
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