Differentiate Between Microsoft Azure and On Premises

Traditionally, businesses and other organizations would host their own infrastructure. A business would have its own web server (or email server, or whatever) on its own hardware. If more power was needed, the business would have to purchase more server hardware. The business would also have to pay someone to administrate that hardware and pay for a solid Internet connection to serve its customers. Alternatively, there are hosting companies that host your services on some of their own hardware in their data centers, for a fee.

Microsoft has leveraged its constantly-expanding worldwide network of data centers to create Azure, a cloud platform for building, deploying, and managing services and applications, anywhere. Azure lets you add cloud capabilities to your existing network through its platform as a service (PaaS) model, or entrust Microsoft with all of your computing and network needs with Infrastructure as a Service (IaaS). Either option provides secure, reliable access to your cloud hosted data—one built on Microsoft’s proven architecture. Azure provides an ever expanding array of products and services designed to meet all your needs through one convenient, easy to manage platform. Below are just some of the capabilities Microsoft offers through Azure and tips for determining if the Microsoft cloud is the right choice for your organization.

High Availability

Unlike other vendors, the Microsoft Azure cloud offers high availability and redundancy in data centers on a global scale.


Microsoft Azure has a strong focus on security, following the standard security model of Detect, Assess, Diagnose, Stabilize and Close. Paired with strong cyber security controls, this model has allowed Azure to achieve multiple compliance certifications, all of which establish Azure as a leader in IaaS security. Not only is the platform protected, the end user is also covered with Azure. This multi-level of protection is essential as security threats continue to multiply daily across the globe, targeting end users and putting your business’ data at risk. Azure provides simple, user-friendly services for increased protection, such as multi-factor authentication and application password requirements.


Microsoft Azure makes it easy to scale compute power up or down with nothing more than the click of a button. With this scalability structure, businesses have the flexibility to pay for only what they use.


It’s imperative to keep IT budgets in mind when choosing a cloud provider, which is why the Microsoft Azure platform is so attractive to many organizations. Azure’s pay-as-you-go pricing allows organizations  to better manage their IT budgets, purchasing only as much as they need. Additionally, the cloud environment allows businesses to launch both customer applications and internal apps in the cloud, which saves on IT infrastructure costs while reducing the hardware and maintenance burdens on in-house IT management.



On-premises, by definition, is using your own physical infrastructure to run servers, emails, network and storage facilities on your own premises. This has its advantages and disadvantages, like any other system, but in the Fintech industry it’s slowly fading in significance as more security issues and data-encryption problems are being solved by ever-evolving Fintech cloud services.

Comparison of Azure Cloud Computing Vs On-Premises

As you can see, both Cloud Computing and On-Premises IT systems each have their own advantages, along with a range of disadvantages. The real task begins in choosing the option that best suits your organization, while taking into account the products and services that your company offers.

Whether an initial large investment, or smaller regular payments suits your budget, the main fear factor on everyone’s minds is the security of data and how safe is it when held in the Cloud Vs On-Premises. Both options offer highly-secure data encryption and tokenization to protect user and financial data.