On-Premise vs Cloud – What is the difference, and why is it so important?

On-Premise vs Cloud Computing

What is the difference, and why is it so important?

The concept of ‘cloud computing’ isn’t new, it is a term that has been popular in the industry for years. But why now is it so important to understand it, and why do the differences between cloud and on-premise solutions need to be fully understood and considered by businesses worldwide?

To put it simply, cloud computing is a way of delivering software, on-demand, over the internet, usually with pay-as-you-go pricing, and it doesn’t require the ownership and maintenance of physical servers. Because of this, cloud computing is often a more cost-effective way of delivering technology services, due to generally having lower management and maintenance costs than physical, on-premise solutions.

The cloud also enables more diversity in product offerings, as well as a much faster deployment time, because organisations don’t need the physical infrastructure to get started, meaning they can access technology solutions in minutes.

‘On-premise’, the better-known term used to describe the method of technology implementation using in-house infrastructure, usually requires a dedicated space within an office/HQ environment to store the physical equipment. The resources will then be deployed in-house and within the company’s IT infrastructure, which will be managed and maintained by their internal team.

An on-premise environment is usually more appealing for highly regulated industries, where the security of sensitive information is of mission-critical priority, and despite the promises of security in the cloud, is often still favoured from a security perspective, as security concerns are still the number 1 barrier to cloud computing deployment.

All in all, the fundamental difference between cloud and on-premise software is where it is installed, either locally within the physical realms of the company, or online on the software vendors’ server. The ownership of the software, privacy, cost, and other management and service capabilities are also differentiators. Cloud hosted software reduces the pressures of maintenance, management, and updates, allowing more time and money to be spent on other priorities, whereas on-premise often boasts better security and reliability.

The decision on which solution is best, cloud or on-premise, is dependant entirely on the company, the type of work and industry it sits in, and their specific business needs and priorities. To find out more about cloud or on-premise solutions, speak to our expert team! Contact us here.