VDI, SaaS, and DaaS uncovered: what companies have to know
Since the early 1990s, the way applications and data are delivered has been constantly shifting.
Today, IT management faces more choice, and more complexity, than ever before. Applications are delivered in different ways for different reasons, and most organizations depend on multiple models at once.
Principal Outbound Product Manager at Parallels.
Understanding how local applications, Virtual Desktop Infrastructure (VDI), Software-as-a-Service (SaaS), and Desktop-as-a-Service (DaaS) fit together is essential when deciding where to invest and how to deliver value in the future.
Local Applications
Local applications are those installed directly on a user’s device. This was the standard delivery method in the 1990s and still accounts for a significant share of business applications today.
Their biggest strength is that they are always available and under the user’s complete control. They can be customized to individual needs and travel with the user wherever the device goes.
The trade-off is that updates and patches must be managed across many distributed devices, which can be slow and inconsistent. Performance can also be unreliable if applications rely on databases or file storage that users connect to from changing environments.
Security remains a constant concern as well because corporate data must travel to the device to get to the applications. This increases the risk of loss or compromise, requiring strong safeguards at the endpoint level.
VDI: Centralized Delivery, Secure Remote Access
VDI moves desktops and applications into a centralized environment, whether on-premises, in private clouds, or in public clouds. Instead of running locally, applications stay in that secure location while only screen updates, keystrokes, and mouse movements travel back and forth to the user.
Data remains in place, which improves control and security . Updates are far easier to manage in a centralized model, and applications can be hosted next to the data they rely on, which helps ensure consistent performance.
At the same time, VDI requires constant connectivity to the central environment. The operational model can also be very different from managing local applications, often requiring specialist skills and dedicated expertise. These factors mean many organizations choose to combine VDI with other approaches rather than rely on it alone.
SaaS: Applications via Subscription
SaaS applications are delivered as a service, typically through a browser, removing the need to install or maintain software on user devices. Subscriptions ensure that applications remain “evergreen,” with updates applied centrally by the provider.
For IT teams, this significantly reduces the effort of maintenance and compliance. For software vendors, it provides a consistent delivery model and a way to bring new features to market quickly.
However, the SaaS model also means organizations do not own the software outright. If subscriptions lapse, access ends, and moving away from one provider to another can be complex, particularly when it comes to extracting data in usable formats.
While SaaS simplifies consumption, it can also reintroduce endpoint challenges. Because data often flows to the user device, security and performance monitoring remain important considerations.
The adoption trend for SaaS is unmistakable. According to the Parallels Cloud Survey 2025, 80% of respondents deliver at least a quarter of their applications via SaaS, with some reporting far higher levels.
DaaS: Desktop Delivery as a Managed Service
DaaS takes the service model similar to SaaS and applies it to full desktop environments that could be delivered via VDI. Organizations consume virtual desktops without the burden of managing the infrastructure themselves.
This approach delivers many of the same benefits as VDI (centralized management, consistent performance, and enhanced security) while offloading much of the complexity to the provider. Desktops can be provisioned and scaled quickly, which makes it easier to support workforce changes or new projects.
As with SaaS, subscription is the defining model: if payments stop, so does the service. DaaS also works best when delivering standardized environments. Heavy customization across a diverse user base can increase administrative overhead and reduce the simplicity it promises.
Another critical factor is data placement. If desktops move to DaaS but applications or data remain elsewhere, user experience may suffer. The guiding principle is to keep applications close to the data they rely on.
Hybrid Approaches as the Default
Few organizations choose only one model. A mix is now the norm: Local Applications where apps demand it, VDI for centralized control, SaaS for ease of delivery, and DaaS for flexibility in scaling. Many organizations blend some or all of these approaches.
According to the Parallels survey, 85% of organizations already use SaaS, but only 2% depend on it exclusively. Most combine it with VDI or DaaS, or both. At the same time, 86% of IT leaders say they are considering or actively planning to move at least some workloads away from the public cloud, underscoring how complex these decisions remain.
What IT Leaders Need to Evaluate
When deciding how to combine delivery models, IT leaders must weigh multiple factors:
Security and Compliance: Highly regulated industries often lean on VDI to retain control, while SaaS and DaaS providers offer certifications that may or may not cover every application or region.
Expertise and Operations: VDI can require specialized skills. Organizations without them often favor DaaS for simplicity. Due to the “data isolation” of SaaS, it can introduce data challenges which call for third-party solutions or specific skillsets to resolve.
Agility and Responsiveness: SaaS and DaaS usually support faster scaling, though cloud-hosted VDI can narrow the gap.
Geographic Distribution: User location, latency, and data sovereignty laws all shape the decision. Regional presence from SaaS, VDI, or DaaS providers can improve experience.
Cost Models: VDI often involves capital investment, while SaaS and DaaS spread costs through subscriptions. Long-term total cost of ownership, including hidden operational costs, must be considered.
Looking Ahead: Building for Flexibility
Each delivery model brings unique strengths: Local Apps for choice, VDI for control, SaaS for simplicity, and DaaS for agility. Most organizations will continue to rely on a mix, and that should be embraced rather than avoided.
The most effective strategy is to align each model with the workloads it suits best, account for security and compliance obligations, and design with flexibility in mind.
With clear priorities and thoughtful planning, IT leaders can deliver secure, reliable access today while remaining prepared for tomorrow’s changes.
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