On Premise vs Cloud

The growing popularity of cloud computing is not surprising as it provides businesses with new flexibility, from time and cost savings to increased agility and scalability. On the other hand, the on-premises software installed on the server of a company and behind a firewall is the only product of the company for a long time and can continue to respond appropriately to the needs of the company.

Because on-premise applications are reliable and secure, organizations can maintain an impossible level of control in the cloud, but in addition to existing on-premise systems, SaaS applications can achieve new business goals and clouds.


On Premises Software

Whether your company decides to deploy the application in the cloud or leave it on-premise, data security is always a top priority. However, companies in highly regulated industries may have already decided to install on-premise applications. If you know that your data is on an internal server, you can rest assured that your IT infrastructure still exists.

On-premise software requires the purchase of a license or copy of the software for use in the enterprise. Because the software itself is licensed and the entire instance is on the organization’s premises, it usually provides better protection than the cloud computing infrastructure.

The disadvantage of on-premise environments is that the costs associated with managing and maintaining all solutions can be significantly higher than in cloud computing environments. On-premise configurations require internal server hardware, software licenses, integration capabilities, and IT staff to take care of and manage any problems. This does not take into account the amount of maintenance the company is responsible for in the event of a failure or failure.


Cloud computing

Cloud computing differs from local software significantly. All companies are hosted on site, but in a cloud environment, third-party vendors host everything. This allows businesses to pay according to their needs and increase or reduce them effectively based on overall usage, user needs and growth.


Cloud servers use virtual technology to host off-premises enterprise applications. There is no capital investment, data can be backed up regularly and companies only have to pay for the resources they use. For companies that want to aggressively grow globally, the cloud is even more attractive because it connects with customers, partners, and other businesses with minimal effort.

In addition, cloud computing is available almost instantly because everything is already configured. As a result, new eco-friendly software is available as soon as the company joins. Instant provisioning reduces installation and configuration time and gives users immediate access to applications.

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Differences Between The On-Premises and The Cloud

There are some fundamental differences between local and cloud environments. The right commercial path depends entirely on what you are looking for in your needs and solutions.



In a local environment, resources are deployed within the company’s IT infrastructure. The company is responsible for maintaining all processes associated with the solution.


There are different forms of cloud computing (public cloud, private cloud, hybrid cloud, etc.), but in a public cloud environment, resources are hosted by service providers, but businesses can access them based on their needs. .



For organizations deploying on-premise software, support ongoing costs for server hardware, power consumption, and space.


Companies that choose to use the cloud computing model must only pay for the resources they use, with no maintenance cost. The price increases or decreases with consumption.



In an on-premise environment, the company retains all the data and completely controls what’s going on, for better or for worse. As a result, companies with particularly strict privacy protections are reluctant to switch to the cloud before others.


In cloud computing environments, data ownership issues are a problem for many businesses and providers. Because data and encryption keys are owned by third-party vendors, the data may not be accessible in the event of unexpected downtime.



Companies with certain sensitive information, such as the public and banking sectors, must benefit from the level of security and confidentiality provided by the on-premise environment. Despite the promise of the cloud, security is a major concern for many sectors. Thus, the local environment makes more sense despite its disadvantages and price.



Security issues remain the biggest obstacle to cloud computing deployments. There are many flaws in public clouds and IT departments around the world are concerned. Employee personal information is real, including login credentials, loss of intellectual property, and security threats.




Many modern companies are regulated in one way or another, regardless of their sector of activity. The most common is probably the Law on Transferability and Responsibility for Health Insurance (HIPAA), but the Law on Family Education and Privacy Rights (FERPA), including detailed records, and of Other governments and industry Organization Rules. In these regulated businesses, it is essential to maintain compliance and keep track of data locations.


Companies choosing a cloud computing model should exercise due diligence and ensure that third-party vendors comply with the code and all applicable regulatory requirements of the industry. There is. You must protect sensitive data and ensure the confidentiality of customers, partners and employees.