# Installed Software vs. SaaS | Capterra > 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: https://www.capterra.com/resources/top-3-advantages-and-disadvantages-of-installed-software-vs-saas --- # 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 - [Bookkeeping vs. Accounting Software: Which One Is the Best Choice for You?](https://www.capterra.com/resources/bookkeeping-vs-accounting/) - [How to design a scalable PTO and leave policies: Free Template, Compliance Guide, and Time off tracking Software](https://www.capterra.com/resources/pto-leave-policies-complete-hr-guide/) - [A Guide to Effective Employee Performance Management](https://www.capterra.com/resources/hr-role-employee-performance-management/) - [Skillfishing: How to Stop Candidates From Using AI to Fake Skills](https://www.capterra.com/resources/skills-based-hiring-guide-skillfishing/) - [Top 5 Project Management Solutions for Project Visualization](https://www.capterra.com/resources/customer-insights-project-visualization/) - [How to Create a Project Plan: Free Template, Steps, and Checklist](https://www.capterra.com/resources/how-to-create-a-project-plan/) - [What is Workforce Planning? Examples and Tips for Small Businesses](https://www.capterra.com/resources/examples-of-workforce-planning/) - [What Is Talent Analytics and How Can It Help You Hire and Retain Better](https://www.capterra.com/resources/what-is-talent-analytics/) - [How AI Onboarding Tools are Reshaping HR Operations](https://www.capterra.com/resources/ai-onboarding-tools-for-hr/)