SaaS vs On-Premise Energy Management Software

SaaS vs On-Premise Energy Management Software

If your job includes managing energy data, either for controlling power production or energy consumption, there’s 90% chance that you are struggling – or at least have struggled – with the integration and organization of your data. Doing that in a good or bad way since the beginning, can affect your business for many years. 


Asset managers, O&M companies or even energy suppliers have two choices: they can develop their own on-premise software, or they can rely on third party’s platforms, that typically work in a Saas (software as a service) manner. 

Both choices have their pro and cons, it really depends on what are your business needs and goals for the long run.


However, in a phase in which it’s difficult to integrate new technologies and business models – like in the energy industry right now – we suggest that system reliability and integration are the key elements that allow companies to keep the pace of innovation and satisfy growing customers’ needs. In particular, we think that there are 5 main reasons why Saas solutions might be better than on-premise custom software:

1. Lower cost of entry

With SaaS, you pay for what you need, without having to buy hardware to host your new applications. Instead of provisioning internal resources to install the software, the vendor provides APIs and performs much of the work to get their software working for you. The time to a working solution can drop from months in the traditional model to weeks, days or hours with the SaaS model.

2. Reduced time to benefit/rapid prototyping

In the SaaS model, the software application is already installed and configured. Users can provision the server for the cloud and quickly have the application ready for use. This cuts the time to benefit and allows to immediatly benefit from it without long wait times or steep learning curves.

3. Scalability

A SaaS approach to energy management, where you can collect all your data, offers more capabilities and fewer headaches than having to control different energy management systems at the same time.

Plus, your energy needs are likely to shift over time and your SaaS software can adapt along with it. For example it allows software suppliers to provide their customers access to new tools that have been shaped by tens of thousands of users’ needs.

4. Costs

Another key difference between Cloud and on-premise solutions is how they are priced. While there are many exceptions to this rule, in general, Cloud software is priced under a monthly or annual subscription basis including costs for support and updates, with the only additional fees being training.

On-premise software is generally priced under a one-time perpetual license fee (usually based on the size of the organisation or the number of concurrent users). There are recurring fees for support, updates and training. But what many companies forget to consider is the Total Cost of Ownership (TCO) of their on-premise software investment, including hardware, network, backup and development systems.

5. The SaaS vendor is responsible for upgrades, uptime and security

Under the SaaS model, since the software is hosted by the vendor, they take on the responsibility for maintaining the software and upgrading it, ensuring that it is reliable and meeting agreed-upon service level agreements, and keeping the application and its data secure.

SaaS software is a solution growing in popularity in the energy sector and has become an increasingly viable business option in the last few years. Suppliers take care of them for you and roll out regular software updates, whilst offering you the highest levels of security.

These benefits are now available with cloud-based energy management tools and having everything in one place is the ultimate key to managing and running a successful business.

This is the one of a series of articles, where we take a look at how energy companies can boost their performances through digital energy. In this series we will discuss:

  • New revenue opportunities in the digital energy era
  • Main struggles with energy monitoring and management software
  • Vertical all in one solutions Vs. Building your own energy software

Subscribe to our Newsletter "Digital Energy Insights"

Elemize Technologies e Sorgenia: insieme per i Prosumer

Elemize Technologies e Sorgenia: insieme per i Prosumer

Milano, 17 Ottobre 2017 

Rendere sempre più autosufficiente il sistema di produzione di energia da parte dei consumatori residenziali, consentendo loro di essere i protagonisti della gestione energetica della propria abitazione. Questo l’obiettivo dell’accordo siglato tra Sorgenia e la start up romana Elemize Technologies.

Il sistema creato da Elemize Technologies permetterà ai clienti di Sorgenia, da settembre 2018, di collegare i pannelli fotovoltaici e le batterie della propria abitazione a una piattaforma in cloud in grado di analizzare costantemente la produzione e i consumi domestici, per una maggiore consapevolezza della spesa energetica da parte degli utenti, consentendo al contempo una gestione più accurata degli accumuli rispetto ai classici sistemi EMS (Energy Management System). Ciò garantirà una gestione più efficiente e conveniente dell’immissione e del prelievo dell’energia dalla rete e dal sistema di storage. L’utente potrà partecipare attivamente alla vendita di energia, avvalendosi delle migliori condizioni di mercato per vendere il surplus di energia prodotta dal suo impianto. Le variabili prese in considerazione dalla piattaforma per l’ottimizzazione dell’intero sistema sono molteplici: i prezzi di immissione e prelievo dell’energia sul mercato, i dati delle previsioni meteorologiche per una stima della produzione dell’impianto fotovoltaico e i consumi attesi sulla base dell’apprendimento del comportamento degli utenti.

Dice Gianfilippo Mancini, Amministratore Delegato di Sorgenia: “Le tecnologie digitali e gli algoritmi di analisi sono già oggi una risorsa preziosa per ottimizzare i consumi e lo scambio di energia. Sono seicentomila le famiglie in Italia che producono energia e che possono avere dei vantaggi economici rilevanti grazie a questa collaborazione. Digitalizzazione significa per noi efficienza, controllo dei consumi, migliore utilizzo delle risorse, trasparenza, benefici per i clienti e per l’ambiente”.

Aggiunge Niccolò Teodori, AD di Elemize Technologies: “L’accordo con Sorgenia ci permetterà di crescere più velocemente sia in Italia che all’estero già dai prossimi mesi, con l’obiettivo di porre i prosumer al centro del nuovo sistema energetico. La nostra piattaforma è l’unico strumento che, anche alle regole attuali di mercato, permette di creare una connessione tra utilities e consumatori, dimezzando i costi energetici del prosumer e aumentando l’efficienza del sistema elettrico in generale”.