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On-Premise Vs Cloud | Which Is Best For You?

Managed services 05/29/2020 - 13:17 by Swami Nathan

There are several considerations in today’s enterprise IT environment that a company needs to weigh in order to determine, if a cloud platform is the right choice. Conversely, many businesses are reluctant to make the transition into the cloud, relying instead on their tried and tested legacy and on-premise applications and technologies to do business.

On-Premise vs Cloud

It’s no wonder that cloud computing has grown in popularity as much as it has, as its attraction and promise deliver a greater versatility for businesses from time-to-time, and money savings to mobility and scalability improvements. On the other hand, on-premise software – built on a company’s own servers and behind its firewall – has long been the only option for companies and can continue to meet your business needs sufficiently (think, “if it’s not broken then don’t fix it”). In addition, on-premise applications are reliable, secure, and allow enterprises to maintain a level of control that is often not possible for the cloud. Yet, there is an agreement among IT decision-makers, that they will need to incorporate modern cloud and SaaS technologies as an add-on to their on-premise and existing systems to achieve their business goals.

On-premise data centres, commonly referred to as “on-prem”, allow you to have full control of your infrastructure, while cloud computing is cost-efficient and easy to scale up and down.

Business needs

On-prem

Cloud

Datacentre single tenancy (for compliance)

X

Highly secure data encryption

Customizable hardware, purpose-built systems

X

Capacity easy to scale up and down

X

Infrastructure requires large, regular investments

X

Pay-as-you-go, usage-based pricing

X

Lower Total Cost of Ownership in long term

X

Complete data visibility and control

X

Built-in, automated data backups and recovery

X

Near-zero downtime risk

X

On-Premise

If it is not broke, don’t you fix it? For decades, many users and businesses have been using software on their own systems and have never had any problems with it. You buy a device, install it on your home computer or office Desktop, and can work with it for many years. The advantage here is that you own the software: You can use the software without any restrictions once you have purchased the device. There’s just one risk at a time. But is this the case, really? The programmes cannot be used for an infinite number of workstations, particularly in the corporate environment where you have to deal with different licences. Every employee may need to buy a separate licence – or you can purchase several licences in one bundle. Therefore, the On-Premise solution isn’t that simple.

Good software is constantly being updated: updates extend the programme’s functions, enhance its stability, and address weaknesses. The users need to install these updates periodically, which is an extra task for them. Especially in larger companies it can be a considerable effort to install updates and bug fixes. Furthermore, the support does not last forever. Many software vendors at a certain point avoid updating the old programme in favour of a new version. You then have two options: either you are continuing to work with an older version, or you are investing in the latest one.

Another benefit, however, should not be overlooked: All data stays with the customer. Although cloud systems allow information to be transferred to a remote server in a data centre, you can carry all data with you in on-promise software unless you choose to use cloud storage. In comparison, as a customer of On-promise solutions, you have full leverage. You can know how to manage the programme yourself.

Advantages

Disadvantages

  1. On-Premise maintains perpetual licences.
  2. Greater control over the protection of data.
  3. Greater customization capability.
  4. The organisation's implementation process is more regulated.
  5. Greater visibility of updates.
  6. More versatility in the integration of other systems.
  7. Response to data is usually much faster than in a web application.
  1. Requires licences to the database.
  2. Needs an internal IT team or an outsourced subscription to support.
  3. Should have your own hardware.
  4. Recurring maintenance payments and updates.
  5. Database security is the organisation's responsibility.
  6. Customization will delay the time of implementation.
  7. Customization will make updates to vendor software complicated.
  8. More difficult and expensive to execute.
  9. It’s an organisation's duty to restore and back up data.

Cloud

Users now have other ways of accessing software with Cloud Computing and SaaS – instead of purchasing the corresponding application, downloading it on your own PC and then using it, you decide on subscription. A provider hosts and offers users’ access to the software in a data centre. Your own PC or laptop just communicates in the browser, so the real processing power is in the data centre. Therefore, your own hardware only needs to provide the internet access.

Not only is the hardware maintained by professional personnel, but the software is up-to-date as well. Updates are installed without any additional effort needed by the user and are immediately accessible. Since the software is independent from the Computer, you can access the programme from anywhere – you are not limited to either the system or the location. Nothing functions without internet connectivity which is a big drawback of cloud computing. This can be especially critical for professional users and businesses: this is unacceptable, if the work suffers due to a poor internet connection.

Professional software can be costly. While On-Premise solutions are generally paid with a one-off payment, smaller businesses and entrepreneurs are not often willing to make such a large investment. Additionally, the programme you buy may not fit your needs after a while, as the business and its requirements grow. Users can opt between a monthly or an annual charge for most SaaS providers, allowing them to move to a new product at fairly short notice. Additional functions or additional access for employees can normally be booked easily and cheaply.

Selecting cloud software means trusting the provider and giving them control. Trust is so important, at times very sensitive and business-related data are stored in data centres of the provider. If data protection is not taken seriously by the cloud software manufacturer, then the consequences could be catastrophic. It is also potentially risky to turn over control: if the provider wants to discontinue the service or even pause for maintenance work, this failure may have adverse effects for the users.

Advantages

Disadvantages

  1. Greater access to the software.
  2. Can be taken as operating expenses.
  3. Predictable costs over time, no more investments in hardware.
  4. Scalable with rising user count.
  5. Less initial investment.
  6. Streamlined disaster recovery and backup.
  1. Minimum commitment requirements.
  2. No control over editions or updates.
  3. Little or no customization capability.
  4. Less integration control.
  5. Reliant on stable internet access and large available bandwidth.
  6. Shorter delivery times are largely at the cost of customization.

So, is Cloud better than On-Premise?

Although, it is obvious that the Cloud provides a variety of advantages, each company has different goals and is different. We, at Teceze believe in providing the right solution for your business and can offer a range of managed services including cloud solutions from our own data centres, on-premise solutions or a mix of both.

The only way to protect what you’ve worked hard to build is to be vigilant when it comes to cybersecurity. If you’d like to know more about how your business can benefit from managed services, just give us a call, we are here to help.

Cloud-based software is hosted on the vendor's servers. On-premise software is installed locally, on a company's own computers and servers.