Platform as a Service (PaaS) vs on-premises: understanding the real value.
Trying to pick a software model through a standard procurement process can be misleading. Many solutions imply one-size-fits-all or look similar on paper, as a result, decisions often get made on price alone.
This can lead organisations to stick with legacy systems or choose rigid black-box software without understanding the long-term value of PaaS.
Cost is often one of the biggest barriers to companies adopting new technology. In our ‘Challenges in Hydrocarbon Value Realisation (HVR)’ survey, more than half of the respondents said budget was their main concern. When money is tight, ensure you are paying for value, not just a licence.
It’s important to consider that solution costs on day one aren’t reflective of lifetime value. If your chosen solution isn’t scalable, has hidden costs, doesn’t work as intended, or fails to integrate with your other chosen systems, it can lead to project delays and budget losses.
PaaS vs SaaS: what is the difference?
At first glance, PaaS and SaaS (Software as a Service) can look similar. They are both cloud-based and accessed through a browser. The difference is the level of control and flexibility you have.
SaaS is a subscription-based product. Your licence is to a defined application with fixed features and workflows. Configuration is often limited, and change is dependent on the vendor’s roadmap. If your needs move outside what the product supports, your options are to either wait for a release that addresses the issue, work around it, or replace the system.
This can be effective for simple, standard use cases. However, oil and gas operations are rarely simple and rarely static.
PaaS takes a different approach. Instead of delivering a single fixed application, it provides a platform you can configure and extend. You start with core capabilities such as data models, security, audit trails, and reporting, then build solutions around how your business actually works.
With PaaS, you are not locked into one way of working. You can adapt workflows, add new asset types, and create new applications to your existing operating guidelines, and change with your portfolio. This flexibility is critical when responding to regulatory updates, mergers and acquisitions, or energy transition requirements.
In short:
- SaaS gives you a product
- PaaS gives you a platform you can evolve
- This ability to change over time is what drives long-term value.
In many cases, cloud platforms offer better value than on-premises software. A PaaS model goes further than traditional SaaS by supporting continuous change rather than forcing periodic replacement.
Total cost of ownership.
Total Cost of Ownership (TCO) includes all costs over the life of a system, not just the purchase price.
Software quotes can be misleading, perhaps removing the first year of support costs from the licence fee. Costs for maintenance, upgrades, security, and compliance may appear at a later date. Vendors may also charge you extra for necessary features to make the system fit for your use case.
These systems may also require additional hardware and specialist staff. Training, infrastructure, and ongoing support all add to the total cost. This makes the TCO far higher than the initial quote.
With PaaS, these costs are built in. The platform is maintained, secured, and upgraded as part of the service. While the subscription cost may appear higher at first, a full TCO review often shows that PaaS delivers better value over time.
Faster time to value.
It’s not just financial costs you risk facing with poor solution fits. Long implementations are disruptive and delay benefits. Traditional systems can take months or even years to deploy, and meeting tight deadlines often results in higher costs.
PaaS is quicker to implement. They are designed to be configured to what you need, rather than the other way round, and don’t need to be built from scratch. This allows organisations to go live faster and get value sooner.
Unlike fixed traditional systems and SaaS options, PaaS allows you to shape the solution to your processes. You get a system that fits how you work, without long development cycles.
PaaS also supports flexible delivery. Teams can implement in-house or work with partners. Reliance on specialist coding skills is reduced, reducing long-term support needs and costly changes.
Easier upgrades, reduced costs.
Upgrades are essential for security and compliance.
These upgrades can be costly and disruptive, especially if they require consultants, new hardware, and user retraining. On-premises systems mean upgrade projects can occur every few years and cost millions.
PaaS upgrades are a standard part of the platform. Enhancements are delivered regularly, with minimal disruption, and don’t require separate upgrade projects. At EnergySys, updates are released at least monthly. Users continue working as normal, benefiting from improvements without downtime or retraining.
Traditional software can be hard to change and expensive to scale, which can limit agility. PaaS platforms are built for change. They scale as portfolios grow or contract, with costs that adjust to usage. This supports more flexible budgeting and simpler upgrades.
EnergySys helps you to future-proof operations. New asset types, reporting needs, and energy transition goals can be handled within a single platform.
Simple, reliable integration.
Most organisations rely on multiple systems. It is essential that any new system or software purchased to support operations must integrate with your existing tools.
On-premises systems often struggle. Integrations can be complex and expensive, leading teams to rely on spreadsheets and manual workarounds. These workarounds introduce risk, reduce data quality, and waste time. These costs are rarely visible upfront.
PaaS platforms are designed for integration. Open APIs make it easy to connect tools such as Power BI, OData services, and data historians, as well as all your essential spreadsheets. This reduces risk and improves visibility, whilst keeping everything familiar and in one place for a single source of data truth.
Understanding the value of PaaS.
PaaS offers clear advantages, especially for the oil and gas industry, but not all platforms are the same. It’s important to understand your data management and your business goals, and evaluate how well each solution supports them.
Make your decisions on long-term value rather than upfront price. Consider the total cost of ownership and make smarter technology choices for your project, your team, and your business.
Want to see how EnergySys delivers value through a PaaS approach? Explore our customer stories.
