Since the rise of companies like Salesforce.com, businesses have debated whether to buy on-premise software or to subscribe to Software-as-a-Service (SaaS) alternatives.

While many organizations still go with on-premise based on perceived cost alone, the market is quickly headed in the other direction. In fact, Gartner expects SaaS adoption to far outpace market growth through 2015.

While total economics are a major consideration in this decision, there are several other tangible and intangible benefits of choosing SaaS and moving to the cloud that companies often overlook because they don’t take into account the real cost of on-premise software that accumulates over time.

 In addition, in recessionary times, many companies cannot wait several months for expensive and time-intensive deployments that software requires. On-premise software can take 18 to 24 months to implement whereas SaaS-based applications can take as little as 30 days.

With more affordable setup, SaaS-based applications minimize companies’ investment risk and are easy on their cash flow. Now more than ever, companies need access to the latest innovations right away to make better business decisions.

To further explain the factors that companies should consider when embarking on a software purchase decision, Zilliant recently revealed five reasons why companies should move to the cloud and consider switching to SaaS.