When my startup launched in the B2B finance space a few years ago, we were SaaS - but faced the same dilemma. Our first customer wanted on-site for security reasons, and we needed the money, so said yes.
A week or two after signing the contract, they said they couldn't get the hardware after all and could we go hosted instead. I look back at that moment, and thank my lucky stars. Now 2 1/2 years later we would never offer on-site as an option.
Be sure of what you're getting in to. Will they allow automated deployments with updates to your appliance (as that's essentially what it is). Will you need permission to access it? How will you support users accessing it? Often those same 'security' reasons apply. And then you'll find yourself stuck in the old model of yearly release cycles, supporting old versions and all kinds of pain.
Think long and hard and be 150% sure it is worth it.
Comments
When my startup launched in the B2B finance space a few years ago, we were SaaS - but faced the same dilemma. Our first customer wanted on-site for security reasons, and we needed the money, so said yes.
A week or two after signing the contract, they said they couldn't get the hardware after all and could we go hosted instead. I look back at that moment, and thank my lucky stars. Now 2 1/2 years later we would never offer on-site as an option.
Be sure of what you're getting in to. Will they allow automated deployments with updates to your appliance (as that's essentially what it is). Will you need permission to access it? How will you support users accessing it? Often those same 'security' reasons apply. And then you'll find yourself stuck in the old model of yearly release cycles, supporting old versions and all kinds of pain.
Think long and hard and be 150% sure it is worth it.