The emergence of digital experience platforms (DXPs) has transformed the way we manage and distribute content. Gone are the days of juggling multiple tools to create and disseminate information across various teams in a business. Now, it's all seamlessly orchestrated from a single location, making it the logical choice for marketing, sales, customer support, and beyond. However, there's an even more streamlined approach—leveraging a DXP as a Software as a Service (SaaS).
By migrating the DXP to the cloud, you retain all the advantages of a DXP, plus you unlock the unparalleled flexibility of cloud-based solutions. Today, we'll delve into what DXP as a SaaS entails, compare it to on-premise alternatives, and shed light on why embracing SaaS for your digital experience platform is a decision worth considering.
On-premises DXP and SaaS DXP
Both options help businesses store, manage, and publish content from a single interface. However, there are significant differences between an on-premise and a SaaS DXP model.
| On-premise DXP | SaaS DXP | |
| Deployment | Hosted and installed on your premises - be it a physical location or network | Deployed in the cloud by a third-party vendor, allowing access for anyone with an internet connection |
| IT requirements | Your own developers or a digital agency take care of the infrastructure | Reduced need for developer expertise to manage IT infrastructure |
| Initial setup | Requires more effort and investments upfront to get the DXP set up | Lower initial costs because of the subscription model |
| Scalability | Depends on your internal infrastructure | Easy to scale in both directions |
| Maintenance and troubleshooting | Your organization is responsible for the maintenance, backups, monitoring and troubleshooting | The SaaS provider handles all the maintenance, backups, monitoring and troubleshooting |
| Responsibility for security | Your organization is responsible for maintaining and enforcing security measures | The SaaS provider handles all the security measures |
| Cost structure | The license and hosting are paid separately | Simplified service level agreements and billing |
As you can see, there are pros and cons to both on-premise and SaaS DXP. Let’s take a deeper look at which option is better for what type of business.
Which one is right for you?
Without taking a good look at your requirements, budget, and day-to-day operations, it’s impossible to define whether on-premise or SaaS DXP is better. But we can give you some pointers depending on your situation.
If you have a small-to-mid-size business: SaaS DXP is a better choice. You won’t necessarily have the IT structure to support an on-premise solution. Also, as your company grows, the SaaS DXP can scale with you too.
If you need to deploy your DXP quickly: SaaS is the better option because you can get started within hours, instead of days or weeks that an on-premise setup would require.
If you have specific security requirements and compliance needs: On-premise might better tick all the boxes. If you look at SaaS DXP, choose one that is ISO 27001 and SOC 2® certified and stores your data within a designated single tenant account in your region. Xperience by Kentico offers such security to its SaaS clients.
If you have a large business: You can choose either way as both SaaS and on-premise models will work for you. SaaS is still the most convenient solution, although larger enterprises typically have a dedicated IT team that can meet higher customization requirements on on-premises solutions.
If you have a remote company: SaaS is the logical choice because it allows your team to collaborate remotely on a DXP. All they need is access to the platform and they can work from anywhere in the world.
In short, SaaS DXP is an overall better choice for most companies. It has a more varied use case, it’s more affordable and flexible and in line with the requirements of the modern workplace.
As Kentico CEO Dominik Pinter says: “Cloud offers faster performance, responsiveness, and greater agility, without having to operate a server infrastructure. At the same time, a usage-based subscription service model provides greater flexibility when it comes to scaling business.”
When is on-premises DXP better?
There are certain situations when a DXP that is hosted on-premises makes more sense than SaaS. If you’re wondering whether to stick with your on-premise DXP solution, here is what to consider.
Regulated industry
If you’re in a heavily regulated industry such as government or cybersecurity, on-premise DXP may be a better choice for your organization. In such a case, the DXP infrastructure is managed by your own IT team or your implementation partner. An on-premise DXP ensures that data is hosted locally and there is no online exchange of information.
Special hosting requirements
Organizations with specific needs, such as a requirement for a sovereign cloud or other unique hosting options, may find that a self-managed or license-only solution is more suitable. Sovereign cloud hosting provides a dedicated and secure environment that complies with specific data residency and sovereignty regulations. This is particularly significant you work in a region with stringent data protection laws or if your organization handles sensitive information.
Benefits of SaaS DXP
A SaaS DXP is the go-to choice for many modern businesses looking to optimize and quickly scale their operations. Here are some more benefits of this model.
Faster deployment – A SaaS DXP such as Xperience by Kentico can be deployed and fully functional real quick. SaaS DXP verdors also provide hotfixes and updates that are easy to install with minimal impact to the service.
Simpler billing – SaaS digital experience platforms have lower upfront costs and billing is simpler due to the fact that licenses and hosting are paid to a single provider.
Autoscaling - SaaS platform scales automatically. Our system can adjust the number of Xperience instances based on the current demand. it monitors the load and resource usage to balance traffic efficiently. When the workload decreases, it scales down.
Data security and privacy - modern SaaS-based DXPs are just as secure as their on-premise counterparts. For example, Xperience by Kentico is ISO27001 certified and developed in accordance with OWASP secure development practice. Both your and your customers’ data is safe.
Reliable troubleshooting and support – The great thing about the Kentico SaaS is that the infrastructure alerts are mostly triggered before you notice any disruptions. With SaaS, we can respond quickly when you get stuck, if you get stuck at all.
Get started with your SaaS DXP journey today
No matter your industry, the size of your company, or your budget, a SaaS DXP can accommodate your needs. And at Kentico, we can help you create a fully tailored DXP that meets the needs of your business and sweeps your customers off their feet. Get started today!
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