In short:
- The decision is not about licence price but about five cost lines, of which operations is the most underestimated.
- SaaS transfers operations to the vendor and, in return, fixes the upgrade rhythm.
- Self-hosting keeps control of the calendar but assumes a team available in three years, not only today.
- Three non-financial constraints often decide before cost: data location, integration depth, internal skills.
What the decision actually covers
Presented as a choice between two prices, SaaS versus self-hosting is really a choice between two ways of splitting the work. In one, the vendor carries infrastructure, backup and upgrades. In the other, the organisation does, or its integrator.
The question that comes first
Who operates the platform three years from now. A named internal team, a partner under contract, or nobody in particular. As long as the answer is the third, self-hosting is a bet, whatever the price gap.
The five cost lines to compare
| Line | SaaS | Self-hosted |
|---|---|---|
| Licence or subscription | Usage based, revisable | Free or perpetual licence, sometimes zero |
| Hosting | Included | Borne by the organisation |
| Day-to-day operations | Included | Human time, the most underestimated line |
| Upgrades | Imposed, included | Controlled, but to be carried out |
| Support | Included in the subscription | Separate contract or internal skill |
The third line skews most comparisons. It appears on no quotation, it is measured in person-days, and it never goes away.
The three constraints that decide before cost
- Data location. Some organisations cannot move data outside their perimeter, which rules SaaS out before any price discussion
- Integration depth. The more the platform must talk to legacy internal systems, the more self-hosting regains ground
- Internal skills. They are observed, not declared in a selection paper
A decision method
- Eliminate on constraints first, not on cost. They are often decisive
- Cost the five lines over five years, valuing operations at the real cost of a working day
- Check reversibility before signing: export format, ticket history, attachments
The third step is the most neglected and the most expensive to fix later. It connects to the logic of the selection criteria grid, where data migration is one of the six deciding criteria. Hosting mode also shapes how IT inventory is collected and how the CMDB is fed, since agents must be able to reach the platform.
Frequently asked questions
Should you host your ITSM platform or buy it as SaaS?
The decision rests on five cost lines, licence, hosting, operations, upgrades and support, and on three non-financial constraints: data location, depth of integration with the information system, and available internal skills. SaaS transfers operations to the vendor but fixes the upgrade rhythm. Self-hosting keeps control of the calendar but assumes a team able to carry upgrades over time.
Is self-hosting cheaper?
Rarely, once operations are costed. The cost moves from the licence to human time, which makes it less visible but no less real.
Can you change your mind later?
Yes, most vendors offer both modes with the same product. The difficulty is contractual rather than technical, and data portability should be verified before signing.