Widespread cloud adoption has led many sellers to shift focus from on-premise solutions to cloud delivery models, giving rise to the hype, which is best for my business?
Anytime you do a cloud and on-premises comparison, it’s essential to consider the needs of your business. There are trade-offs to whatever option you choose, so you should have all the essential information before you decide between on-premises or cloud services you include at your company.
Various elements go into on-premises and cloud systems. To sum up, you should focus on the differences between two essential elements of your solution: storage and software. Storage and software are vital to an organization’s ability to function daily.
If you are confused about which option is more secure, accessible and affordable, explore our handy comparison.
Cloud Vs. On-Premise Software Comparison
The fundamental difference between cloud vs on-premise software is where it resides. On-premise software is specifically installed locally on your Company’s computers and servers, whereas the cloud software is hosted on the vendor’s server and accessed through a web browser.
Before taking any decision, you must consider all the aspects, including software ownership, cost of ownership, software updates and additional services, such as support and implementation.
Here we explore all the pros and cons.
Advantages of Cloud Software
- Easy Accessibility
You can access your applications anytime and anywhere via a web browser from any device.
Cloud requires no upfront costs; instead, it offers the freedom to make regular payments, making it an operating expense. While the monthly cost increases over time, maintenance and support services are included eliminating the need for annual contracts.
- Predictable Costs
Benefit from predictable monthly payments that cover software licenses, upgrades, support and daily back-ups.
- Enhanced Security
Data centres employ security measures beyond the affordability of most companies. Therefore your data is often safer in the cloud than on a workplace server.
- Easy Deployment
Cloud-based software is deployed over the Internet in a matter of hours/days, compared to on-premise applications, which must be installed on a physical server and each PC or laptop.
- Effortless Scalability
Cloud technologies provide better flexibility as you only pay for what you use and can quickly scale to meet demand, for instance, by adding and scaling back licenses.
- Reduced Energy Costs
When you move to the cloud, you no longer have to pay for power on-premise servers or to maintain their environment. This reduces the amount you pay on your energy bills enormously.
Drawbacks of Cloud Software
Cloud solutions require undisrupted internet access for you to remain productive.
- Long-term Costs
Although requiring a lower upfront investment, cloud software can be more costly over the system’s life cycle, increasing total costs in the long run.
Advantages of On-Premise Software
- Total Cost of Ownership
Since you only pay for your user licenses once, an on-premise solution can have a lower Total Cost of Ownership (TCO) than a cloud system.
- Complete Control
Your data, software and hardware platforms are all yours. You decide on the configuration, the upgrades and the system changes.
With on-premise systems, you don’t rely on internet connectivity or external factors to access your software.
Drawbacks of On-Premise Software
- Large Capital Expense
On-premise systems require large upfront purchases, so capital expenditure (CapEx) is often required. In addition, you need to include maintenance costs to ensure support and functionality upgrades.
- Responsibility For Maintenance
With an on-premise system, you are responsible for maintaining server software and hardware, data backups, storage and disaster recovery. This can be an issue for small and medium-scaled companies with limited budgets and technical resources.
- Longer Implementation Times
On-premise implementations take longer due to the time needed to complete installations on servers and each computer/laptop.
Why is Cloud Better Than On-Premise?
Dubbed better than on-premise due to its reliability, flexibility, and security, the cloud eliminates the hassle of maintaining and updating systems, allowing you to invest your time, money and resources into meeting your core business goals. Offering real-time access to systems and data from various devices regardless of location and guaranteed up-time of 99%, the cloud is becoming the number one choice.
Which is Right For My Business?
There is no one-way answer to the cloud vs on-premise software dilemma. Every consumer is different and has different needs that will influence the choice of the deployment strategy. There are several questions to ask before finalizing your cloud vs on-premise software decision:
CapEx vs OpEx – Can you afford the upfront investment required in an on-premise solution?
Backup and disaster recovery – Do you have the tools to ensure top-level security?
The upgrade cycle – Is it essential for you to have access to the latest functionality and compatibility updates?