On-Demand Vs On-Premises collaboration :

Traditional software applications are based on large up-front licensing with support model. Increase in number of users may raise the base cost of the application price and as a result additional hardware server deployments and IT support. Typical enterprise software requires costly hardware deployment, servers, backup devices, and enough network provisioning in order to accommodate the number of users on and off-campus. The On-Premises approach will require significant up-front and on-going efforts by IT departments.

On-Demand subscription doesn’t involve any large up-front licensing with support model and doesn’t require any investment for hardware and software. In the On-Demand case, the cost of scaling is absorbed by the service provider. The service is always over provisioned in order to have capacity available and there are NO additional IT costs for additional users. The hosted, On-Demand approach alleviates these efforts and shifts the responsibility and resource expenditure onto itself, freeing the school management to realize the benefits for other facilities.

On-Demand, hosted approach, employs a Software as a Service model. One of the benefits of multi-tenancy is the ability to serve large numbers of concurrent users with thin client applications over the internet.