The decision whether to go for on-premise or cloud solutions is a big decision for businesses. Every option has a good and a bad side. You must know which one fits your needs. Below we outline some of the differences as well as what some experts recommend for certain situations.
Taking a Primer on On-Premise vs Cloud Solutions
On-Premise:
On premise means keeping your IT systems, software, and data on servers located in your business location. All maintenance, security and updates are in your hands.
Cloud:
A provider hosts cloud solutions online and you get access to it. You set about using services but the provider manages the systems for you.
Key Factors to Consider
1. Cost
On-Premise: That hardware, software, and setup all cost a lot, you pay them when you get there. Then you spend money on maintenance and upgrades and on electricity.
Cloud: You just pay monthly or by what you use. It’s cheaper to start with, but the bottom line cost depends on how much you use.
Expert Tip:
If you prefer steady, long term costs, go for pick on premise. If your needs change, choose cloud.
2. Control and Customization
On-Premise: With everything under your control, you can set up the system to suit you.
Cloud: Your control is less because it’s in the control of the provider. Providers do, however, allow some flexibilities.
Expert Tip:
If you require full control, or need specific settings, you can pick on-premise. If your needs are simpler, use the cloud.
3. Scalability
On-Premise: It takes time and costs more because you need to buy and install new equipment.
Cloud: In this way resources can be added or removed quickly as required.
Expert Tip:
If you have a fast growing business or have periods when you need more resources, use the cloud.
4. Security
On-Premise: You take care of your own security. It controls but requires skilled workers.
Cloud: Security is strong from the provider. Others fear that storing sensitive data in the cloud is not as safe as it could be, outside the business.
Expert Tip:
If you do certain types of sensitive data dealing that needs to be by yourself—pick on-premise. If you trust the provider’s security, use the cloud.
5. Maintenance and Support
On-Premise: And updates and backups and fixing problems require your IT team.
Cloud: Leaving most of the task in the hands of the provider leaves your team with less to do.
Expert Tip:
Have an IT team and pick on-premise. If you want your team to have fewer tasks, use the cloud.
Recommendations that are industry specific
1. Small Businesses and Startups
Recommendation: Use the cloud. At first it costs less, it’s easy to use, it grows with your business.
2. Legacy Systems Enterprises
Recommendation: Either on-premise or hybrid solutions. The large businesses with old systems still want control but they can use the cloud for their new projects.
3. Regulated Industries
Recommendation: Can be used on premise or private cloud. They need tight security and control on data.
4. Creative Industries and Technology
Recommendation: Use the cloud. It provides access to tools without big upfront costs and support teamwork.
The Hybrid Approach
Most of the businesses use On-premise and cloud both. They have important systems in place that are on-premise, and only other tasks use the cloud. This is flexibility and control.