On-prem data for affiliates

Is there a growing trends towards more on-prem data services?

In the past year, I’ve had some big affiliate companies say that they wouldn’t use StatsDrone unless we made an on-prem version of the app. Ironically some of those people have since decided they will try to do their stats in-house. 

Then on podcasts, I started hearing more about this in various saas, tech and data podcasts.

Quick shoutout to StatsDrone and FTDx as sponsors of this newsletter.

Then at NEXT.io - The World’s iGaming Community I had a chance to meet Mark Flores Martin , founder of XGENIA and he shared something that caught my attention about his thoughts on companies wanting to move to on-prem. 

Then this week I had a listen to episode 775 on the Starups For the Rest of Us podcast by Rob Walling. In came this question:

Now to be clear, on that episode on that question, they dived into the idea of your own hosting being local rather than being a SaaS company offering on-prem solutions. That example was rather than using AWS, you host your company's tech locally. Not everyone wants to do that so we are actually talking about the other angle.

So let me dive into the topic of on-prem services for affiliates and other SaaS products and industries. What Mark Flores Martin was saying I think has some truth in it.

In particular, he told me that big companies will want to ensure that their data is more on their side and companies will be looking at cancelling data contracts as a result.

I’m not seeing this change yet but maybe it might start happening. 

The core argument here is your valuable data being on another server and trusting that company does everything in their power to keep it secure and not accessible to any party that shouldn’t have access to it.

This is the part of a movement I do think could happen where we move from the traditional SaaS model to seeing more companies offering on-prem solutions. 

It is no wonder why governments, universities and hospitals all build proprietary software. Could you imagine your entire health and gov documents sitting in Hubspot, Trello, Lastpass and Dropbox? It would be horrifying.

So who wants more on-prem solutions in the affiliate space?

I think the answer is most of the larger companies would want this. 

That is why we built our DIDO product which is on-prem affiliate stats. 

I think a lot of the affiliate programs would like this too. I think this could be the reason why we have such a large number of affiliate programs using in-house proprietary software. 

I’m not advocating for new operators to launch using their own software but just pointing out the reasons why they do it. 

Do you think we are in a new shift of data tools and privacy where more companies will want to own their data?