A SaaS or Cloud based system is often more affordable than an on premise solution.
In fact, cloud-based solutions often come at a fraction of the cost of on premise software.
The total costs for procuring SaaS solutions and deployment of that technology is often significantly lower.
It is important to point out that SaaS or cloud based solutions are often only offered on a subscription basis.
In short, SaaS systems are often considered more affordable.
Many organizations are switching to cloud solutions as preferred over on-premise systems.
According to the Gartner report on Market Trends, organizations using cloud services are allocating 40% of their IT budget to cloud-related spending. 78% of these organizations planned to increase their spending on the cloud.
One thing to keep in mind is that cloud-based solutions often eliminate the maintenance, upgrades and additional customization costs.