"On-Premises vs. Cloud Solution" : Pros & Cons

As many companies are switching to cloud solutions from the on-premise module, an important question arises on the horizon, ‘Is this a better option for everyone?’. To find out which option suits your business in terms of security, cost and affordability here is comprehensive comparison between the two solutions.

The cloud solution has brought a lot of benefits such as independence from hardware restrictions, always-current functionality, and agility. These benefits have lead to the conversion of a lot of companies to the cloud model making it difficult not to appreciate these benefits. However, the debate between the cloud and the on-premise solutions remains on fire.

A comprehensive comparison between the “On-Premises” & the “Cloud” Solutions.

Basically, the essential difference between the two solutions is the location in which the software is hosted. In the on-premise solution, the program is hosted in servers located on-site where the business is, while in the cloud solution the program is hosted on the service provider’s servers which are accessible online.

Besides the hosting location, there are several other things to take into account when choosing the solution that suits your business, e.g the possession of the program, the price for the possession, the program’s update and its maintenance…etc. In this article, we will bring the pros & cons of each solution.

Cloud Solution 

Pros:

Accessibility constraint-free: 

The software can be accessed online from anywhere and at any time using any computer without any constraints.

Affordability: 

The solution doesn’t need capital to be invested in advance as a [CapEx], alternatively, it is an expensed service the can be paid for regularly as an [OpEx]. Although over time this expense can cumulate up high, being inclusive of 24/7 technical support and maintenance services, will on the other hand save on the regular yearly service agreements. 

Foreseeable expenses: 

This solution helps to foresee the regular charges that include the program licenses, updates, technical support, and maintenance, without having to worry about unpredictable charges. The service providers take care of both the software and the hardware. 

Advanced security measures: 

The service providers of cloud solutions mostly resort to the highest security measures that exceed what any company would consider investing in by itself, hence, cloud solutions are much secure than on-premise solutions.

Fast Setting: 

Cloud solutions can be set quickly via the internet within a day or a couple of days, contrarily to the on-premise solution which requires setting the servers and hardware, then installing the programs to each device.

Scalability: 

This solution offers massive flexibility to meet the business's expansion and upscaling demands, as it charges for what is used. 

Fewer energy requirements: 

Cloud solutions help to save on the energy required to run the servers and preserve their temperature. It considerably decreases the power expenses.

Cons:

Internet connection: 

The quality of the internet connection is vital for the data on the cloud to remain accessible at all times.

Costs: 

Despite that, the fact that cloud solution doesn’t require capital to be invested in advance as a [CapEx], in the long term the total expense is going to be higher than having own servers on-premise.

Less Modifiable: 

Normally cloud solutions can accept certain levels of program modifications and configurations. Nevertheless, it may sometimes fail to handle complicated programs.

On-Premises Solution 

Pros:

Overall Cost: 

With the on-premise solution, the expense for the software and hardware is paid one time, and that will be less than the total paid as monthly fees for the cloud solution within the life cycle of the software

Total Control: 

With an on-premise solution, the owner will have total control over the data, software, and hardware. Therefore the company freedom to upgrade, and configure the system the way it wishes.

Connectivity:

Access to the program will not be affected by any external factors such as the internet connection.

Cons:

Big (CapEx): 

Having the solution on-premise will require a big capital expenditure in advance which is too risky especially for startup businesses. In addition to that,  maintenance expenses will have to be included.

Maintenance accountability:

It is your servers, programs, and hardware. Any problem small or large that may happen is going to be your responsibility to fix and maintain.

Slow setting:

Unlike the cloud solution, an on-premise system will require a much longer time to be set as the software will require installation in the servers and every single device.

The cloud solution is obviously better, Here is why:

From the above, we can conclude that the cloud solution eliminates the maintenance burden and the responsibility of dealing with software or hardware disasters. As a business owner and team, you will be able to focus your time and energy more on the core business itself. The cloud solution allows you to access it at any time and from any device, it is flexible, secure, and it is much more reliable.

Which solution is better for your business?

When you take into consideration the above-illustrated Pros & Cons, the answer to this question will depend on the nature, size, and specific requirements of your business. Both solutions may suit your business at different stages of business development. All you need to do is asking yourself the following questions before deciding which solution is better for your business.

OpEx or CapEx: Are you ready for capital expenditure to be paid in advance so you save on the long term?

Maintenance Responsibility: Do you have the resources, skills, and abilities to take care of the maintenance work?

Flexibility: does your business require to stay updated with the latest solutions, upgrades, and security?