Cloud or on-premise? Selecting - Palette Software 2019-03-28¢  Whitepaper | Cloud or on-premise? However,

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    Whitepaper

    Cloud or on-premise? Selecting the right Purchase to Pay model for your business needs

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    Whitepaper | Cloud or on-premise?

    However, a cloud-based SaaS model might not be the best solution to meet your business’ requirements. As such when you automate your financial processes with Palette, you can choose between three different models for your AP Automation and/or P2P processes: Cloud shared environment

    Cloud dedicated environment

    On-Premise But what are the benefits and restrictions that each of these models offer? This whitepaper will provide an overview of each delivery model, helping you to assess which is the best for your business’ needs as you go through the process of deploying a P2P solution. Understanding the Delivery Models The first step to evaluating which option is best suited for your organisation’s needs is understanding how each model works, assessing how the solution would work within your existing infrastructure and how this fits with your P2P project goals. As such the best-fit for your business will largely depend on the requirements of your organisation, existing IT infrastructure, IT investment strategy and internal security requirements.

    So let’s first take a look at each of the three models in turn. The following provides a summary of how each one fundamentally works.

    Introduction As companies embrace digital transformation, many are migrating critical business applications to the cloud. Demand for these services has consistently increased year on year, and cloud-based solutions are being deployed across all business departments. Recent research has found that 79% of organisations had adopted SaaS applications in 2017, when the SaaS segment held nearly 69 percent of overall public cloud market share. It is now possible to automate the entire purchase to payment (P2P) process with Software as a Service (SaaS) in cloud environments, with many businesses choosing to implement P2P solutions in the cloud. This enables the entire purchase-to-pay process to be managed outside of the organisation with no need for hardware investment, while removing the need for maintenance of servers and software. And by transferring operations and maintenance to a dedicated, outsourced team, businesses can ensure that their P2P processes are running in a stable and reliable environment.

    ”The first step to evaluating which option is best suited for your organisation’s needs is understanding how each model

    works.”

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    Whitepaper | Cloud or on-premise?

    Cloud – shared environment With a shared environment hardware resources are shared between you and other customers. This requires us, as the supplier, to clearly delineate different environments from each other, so that business data cannot be accessed by unauthorised parties. It is possible to integrate Palette’s solution with locally installed ERP systems. However, there may be limitations for some in the ability to integrate with other software, such as customised reporting tools. For instance, with Palette in the shared environment, you cannot set up communication via VPN channels. Integration must go through the web service or file.

    Cloud – dedicated environment Another type of cloud solution is the dedicated cloud environment. Although this type of solution is more expensive, large businesses will see significant return on investment from this model. In particular, organisations with significant volumes of invoices and/or transactions and/or organisations with specific requirements regarding integration and security will benefit.

    A dedicated environment in the cloud affords you much more flexibility in terms of possible customisations and integrations. This means that the environment can become fully integrated with other systems and existing IT infrastructure. There are no indications that a dedicated environment provides a higher level of data security than a shared environment, but it can allow you to set up stricter and customer-specific routines with regards to accessing the solution.

    However, many companies, authorities and organisations have an IT policy that does not allow a shared environment in the cloud. If so, it is still possible to choose a cloud service through your own dedicated cloud. It should be noted though that data traffic will still cross national borders, as data storage in the dedicated Palette cloud is physically located within the EU.

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    Whitepaper | Cloud or on-premise?

    On-premise This classic solution is still an option for Palette customers. When you set up our solutions on-premise it is best to follow our hardware recommendations to optimise the software’s performance.

    Installation and implementation is managed by experienced consultants from Palette, then when the solution is in place, you manage both the operation and the maintenance of servers and software internally.

    As such you control the location of servers and thereby you can influence the level of data security you want to apply (although high security levels tend to be expensive for independent small and medium sized firms). Integration with other systems, like reporting or business intelligence systems, is also a huge advantage of deploying an on-premise solution. The same applies if you have geographic restrictions regarding data traffic – for example if data must not be stored outside of the country, an on-premise solution would be the only option.

    Overview of the benefits and restrictions of Palette’s cloud and on-premise offerings With an understanding of how each model operates, the next step towards selecting the right P2P delivery method is evaluating the benefits and restrictions that each has to offer. Each delivery model comes with its own set of benefits and restrictions. In this section we will look at each option in turn, outlining the strengths that each has to offer. Shared environment in the cloud

    Benefits + Cost-effective for most businesses/ organisations + Reduced need for staff in the IT department + Maintenance and operations are managed by supplier + Continuous upgrades, several times per year + Scalable as your business expands + Increased security level compared to average on-prem security level (encrypted data included) + Good and stable performance as supplier develops the software and operates it (few sources of malfunctions or unwanted change in the software) + Geographical redundant storage of back-ups + Monthly fee, instead of a large upfront license cost

    Restrictions - External data storage, which may be a source of concern for some organisations (despite security levels now being judged to be the same or higher in the cloud) - Not possible to limit data traffic within the national border - Some limitations of customer specific adaptations

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    Whitepaper | Cloud or on-premise?

    Benefits + Reduces the need for staff in the IT department + Maintenance and operations are managed by supplier + Continuous upgrades, several times per year + Increased security level compared to average on-prem security level (encrypted data included) + Good and stable performance as supplier develops the software and operates it (few sources of malfunctions or unwanted changes in the software) + Geographical redundant storage of back-ups + Provides great flexibility for customisations and integrations + Possible to set up stricter and customer specific routines with regards to accessing the solution + Monthly fee, instead of a large upfront license cost

    Dedicated environment in the cloud

    Restrictions - More expensive compared to shared environment - Not possible to limit data traffic within the national border

    On-premise

    Benefits + You have physical control of the data + Flexibility in terms of integration with other IT systems + Data traffic remains within the country + Provides great flexibility for customisations and integrations + Possible to set up stricter and customer specific routines with regards to accessing the solution

    Restrictions - Requires hardware investments if data storage spare capacity is not available - May require upgrade of the hardware when product is upgraded or data volume increases - Requires maintenance of servers and software - Data traffic remains within the country - Server updates can interfere with installed software - Lower security level (in most cases) compared to a cloud solution - No continuous upgrades of the software included – every upgrade will incur project generating consultancy costs

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    With this information it is now possible to assess the different solutions against both your P2P project goals, the wider needs of the business and how they would fit within your existing IT infrastructure. This is a process that Palette guide’s its customers through, providing support and consultation at every step of the journey, from selection through to deployment.

    Flexibility in changing cond