What is an example of on-premise?

Examples of on-premise include company-owned servers and data centers, workstations, on-site software applications like CRM systems, and local file storage and backup systems.

What's the difference between on-premise and cloud?

You can manage on-premise solutions on the company's own servers and physical premises. This gives full control and ownership over the hardware and software. Whereas a third-party provider hosts and manages cloud solutions over the internet. Thus, it offers higher flexibility and lower upfront costs.

Which is safer, on-premise or cloud?

On-premise provides more direct control over security and compliance. Cloud providers offer robust security measures with less direct control for the company. The safety of either depends on how well security is implemented and managed.

What is AWS on-premises vs cloud?

AWS on-premises lets customers run computing and storage on their premises. Thus, customers get the same functionality as the AWS cloud, which offers a hybrid experience. In the AWS cloud, customers manage resources entirely in the cloud environment.

Is Azure better than on-premise?

The choice between Azure and on-premise depends on the organization's specific needs. Azure offers scalability, flexibility, and reduced upfront costs, while on-premise solutions provide more direct control and customization. Many organizations adopt a hybrid approach to leverage the strengths of both.

On Premises vs Cloud: Key Differences & Benefits

Admin
Cloud
Apr 23, 2024

Table of Content

Hiral Patel

VP of Technology at Prioxis | Cloud Evangelist

Did you know? Approximately 94% of global enterprises run on the cloud, and according to Goldman Sachs, cloud computing sales are expected to rise to $2 trillion by the end of the decade.

Despite this adoption rate, many organizations still find it challenging to adopt the cloud. They continue to feel more comfortable with on-premises infrastructure. We have managed on-premises IT infrastructure and provided cloud migration services to various global companies, and we can say the cloud is a much better option than on-premises.

This blog provides a detailed comparison between cloud and on-premises to make your decision-making process easier.

Let’s dive in.

What is On-premise Software?

The on-premises model refers to the traditional method of managing and maintaining IT assets. In this model, companies have to set up IT hardware and install different software. They must allocate a separate space within their office premises and keep it running 24×7 without any interruption. You need an expert team to manage this setup. This model gives you full control over your servers and data.

Advantages of On-premise Setup

Super secure An on-premise setup is more secure because there is less chance of leaking valuable data to third parties. Many businesses consider it more secure because the data stays inside the organization.
Complete Control When you do not use remote servers, your developers can make upgrades or changes faster. Storing the data on hardware within the company's premises results in fewer obstacles, including a lack of internet connection or third-party problems.

Disadvantages of On-premises Setup

Cost The on-premises system requires a hefty initial upfront investment to set up hardware equipment, software licenses, and storage capabilities. You also need to hire human resources to manage it.
Confined Scalability On-premises systems are not capable of scaling themselves according to increasing user load. You have to set them up in advance to handle future user demand, which can incur additional costs.

What is Cloud Computing?

The cloud system allows you to store your assets on remote servers that can be accessed over the internet. You can store source code, media assets, and dependencies in the cloud and access them whenever you want. The cloud system is the opposite of the on-premises system, as you do not require an extensive infrastructure setup or heavy investment. There are three types of cloud service models: public, private, and hybrid.

Public clouds are owned by third parties and offered over the internet on a subscription model.
Private clouds, like on-premises systems, are dedicated to a single organization, providing greater data control and security.
Hybrid models offer the best capabilities of both public and private clouds.

Why is Cloud a Good Option?

Cost Control Cloud native application development eliminates the need for upfront investments in data centers or expensive hardware maintenance. Plus, your business doesn’t require you to incur the cost of maintaining them.
Scale As You Grow With the cloud, you can scale up your infrastructure during increased workload without hampering the existing performance. You can use as much processing power or storage as you need and then decrease it based on the business situation.
Ability to Adapt Faster In cloud-native service setups, you can test and deploy new technologies within hours. Cloud providers offer free trials and pay-as-you-go options, which allow you to test updates quickly without financial limitations.

Disadvantages of Cloud computing

Vendor Dependency You have to be dependent on cloud service providers. This can cause issues at times if your provider faces any problems, and you must also face the consequences of them.
Internet Reliance To access cloud resources, you need uninterrupted internet connectivity. Due to internet usage, there is a chance of potential security issues from hackers.

So, this was an overview of on-premise and cloud. Now, let's take a closer look at On Premise Software vs Cloud Software.

On premises vs Cloud: The Key Differences

These are the top cloud vs. on-premise pros and cons. Looking at the current business scenarios, Cloud-Native Application Development may seem like a better choice.

Distinguishing Features	On-Premise	Cloud
Where are They Deployed	You create and deploy software in-house directly on computers and hardware located on your organization's premises and maintain all resources.	You access servers and software hosted by cloud providers via the Internet, with physical infrastructure managed by the provider.
Price You Pay	More costly with high upfront infrastructure, hardware, and setup costs as you grow.	Pay-as-you-go or subscription-based with lower upfront costs and provider-managed maintenance.
Your Control on Data	More control since data and hardware are on premises, suitable for regulated industries.	Less control as the provider manages setup, updates, and security.
From Where Can You Access Them	Accessible only from the device where the software is installed.	Accessible from any device connected to the internet.
Updates and Maintenance	Upgrades may require extra hardware or system reconfiguration.	Updates and maintenance are handled automatically by the provider.
How Secure Are They	Considered secure as data and servers are within the organization.	Uses end-to-end encryption, two-factor authentication, and advanced security, often more secure.
Internet Reliance	Does not completely rely on the internet and works during connectivity issues.	Entirely dependent on a proper internet connection.
How Much is the Uptime	Usually close to 100% but depends on tracking methods.	Typically around 90.9% uptime from major providers.
Which is More Reliable	Hardware failures possible and requires manual disaster recovery.	High uptime guarantees with automated backups and recovery.

This is because it comes with lower cost, less uptime, and better reliability. However, to have complete control over your data, opt for an on-premise setup. A few more pointers to consider before deciding to continue on the cloud or stay on-premise.

On Premises Software vs Cloud: Which Option Is Better for Your Business?

When to Go for Cloud

Opt for cloud solutions to avoid significant upfront investments in hardware, software, and infrastructure.
Cloud computing provides the necessary flexibility for employees to access applications or data from anywhere.
If you require quick deployment of applications and services,
To avoid overprovisioning and ensure efficient use of resources
For businesses focusing on innovation, the cloud allows for rapid testing, development, and deployment of new applications without hardware limitations.

However, the training cost can be higher if your company lacks an IT team with sufficient skill. In this case, you can opt for cloud-native service development.

When to go for On-premise

The advantage of Cloud Native Services can sometimes sound so attractive that you feel the need to shift. However, on-premise may be a better decision for your company.

Go for an On-premise Setup If

Your business has the resources to make the upfront investment and can maintain the same,
You have a large-scale IT environment and desire greater flexibility in making changes.
You don’t want a third party to have access to your data

You can also merge the advantages of these two configurations using a Hybrid cloud arrangement. In a hybrid setup, you can take advantage of cloud computing flexibility. However, you can also have control over a few on-premise systems for security measures or specific needs.

The Final Decision Is Up to You

Choosing between on-site and cloud-based solutions can be a tough call. As more companies transition to a cloud infrastructure, it might appear as a compelling option, and indeed it is. Nonetheless, always weigh the advantages and disadvantages of both arrangements for your business. Bear in mind nobody can make a better decision for your business than yourself. If you are thinking of going for cloud setup and looking for a cloud-native application development, we can help. Our experienced team makes the transition super smooth and hassle-free for you. Get in touch with us today if you need more information to make the shift or want to understand how we can help.

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