--- title: "Installed Software vs. SaaS | Capterra" description: "The two primary types of business software are the traditional installed approach and the increasingly popular (but still less common) Software as a Service (SaaS) approach. These two models offer different advantages and disadvantages to their users." source_url: "https://www.capterra.com/resources/top-3-advantages-and-disadvantages-of-installed-software-vs-saas/" page_type: "article" language: "en" --- # Installed Software vs. SaaS By JP Medved JP Medved J.P. was formerly content director at Capterra. [See bio & all articles](https://www.capterra.com/resources/author/jpmedved/) Published March 29, 2010 2 min read Business software comes in many different flavors. Whether you’re looking for something fast and easy to use, or something more robust and flexible, there’s a software model to suit your tastes. The two primary deployment options are the traditional installed approach and the increasingly popular (but still less common) Software as a Service (SaaS) approach. These two models offer different advantages and disadvantages to their users. **Advantages of Installed Software:** **1.** Onsite location allows high degree of customizability**2.** Being onsite also allows deeper integration with existing IT systems**3.** Allows complete control over your own data, security and access permissions **Disadvantages of Installed Software:** **1.** Large upfront costs**2.** Potentially lengthy integration periods**3.** Upgrades can be costly and lead to implementation problems **Advantages of SaaS:** **1.** Faster implementation since software is already up and running online**2.** Low upfront cost**3.** Economies of scale allow SaaS vendors to handle security issues better than small or midsize businesses could on their own **Disadvantages of SaaS** **1.** Control of your data is ceded to a third party, and potential platform customization is lessened**2.** Subscription fees could be more costly over the long-run than the upfront costs of installed software**3.** Should you want to switch platforms or the SaaS vendor becomes insolvent, recovering or migrating your data from their system can be a headache **Summary** So which model is right for you? It really depends on your needs. How important are the following: time to market, customization, security, short and long-term costs and remote access? Answering these questions will help you make the right decision. ## Capterra's 2026 Software Buying Trends Report ### Download our 2026 Software Buying Trends Report to see how successful software adopters avoid disappointment and how your business can, too. * * * Looking for Purchasing software? Check out Capterra's list of the [best Purchasing software](https://www.capterra.com/purchasing-software/) solutions. ### Was this article helpful? * * * ## About the Author [### JP Medved](https://www.capterra.com/resources/author/jpmedved/) J.P. was formerly content director at Capterra. ### RELATED READING - [How Much Does Association Management Software Cost? Pricing Breakdown for 2026](https://www.capterra.com/resources/association-management-software-pricing-2026/) - [Deputy vs. Homebase: Which Employee Scheduling Tool Fits Your Business?](https://www.capterra.com/resources/deputy-vs-homebase/) - [Best Employee Scheduling Software in 2026: My Picks Based on My Analysis of 2,678 Capterra Reviews](https://www.capterra.com/resources/best-employee-scheduling-software-reviews-analysis/) - [Applicant Tracking System Pricing in 2026: What Businesses Actually Pay](https://www.capterra.com/resources/applicant-tracking-system-pricing-2026/) - [Human Services Case Management Software: My 5 Picks From 900+ Verified Capterra Reviews](https://www.capterra.com/resources/human-services-case-management-software-reviews/) - [9 Best Applicant Tracking Systems for Small Business (2026)](https://www.capterra.com/resources/best-applicant-tracking-system/) - [The 7 Best Association Management Software for Nonprofits in 2026: My Analysis Based on +530 Capterra Reviews](https://www.capterra.com/resources/association-management-software-for-nonprofits/) - [Does AI-Powered Accounting Software Actually Save Time?](https://www.capterra.com/resources/ai-accounting-software-report/) - [Best LMS for Corporate Training: My Top 7 Picks From Capterra's Reviewers](https://www.capterra.com/resources/best-lms-corporate-training/)