On-premises vs cloud computing

Table of contents

What is the difference between on-premises and cloud computing

The Pro’s and Con’s

Advantages/Disadvantages of on-premise computing

Advantages/Disadvantages of cloud computing

How to choose between on-premise and cloud computing

Working with Focus Group

On-premise vs cloud​, which is best for your business? For enterprises, there’s a lot to consider before deciding the right IT solution. Some want to take the next big step and reach for the cloud, whilst others feel their on-premise software can keep operations running smoothly.

It’s no easy decision. But don’t panic! We’re here to break down the advantages of on-premise vs cloud​, the key differences, and find that perfect IT infrastructure for your business.

What is the difference between on-premises and cloud computing?

In a nutshell, it all comes down to location. On-premise pretty much does what it says on the tin - it's installed and hosted locally through your own physical infrastructure. On the other hand, cloud software is accessed via the web, and remotely managed through a third-party provider.

But that’s just scratching the surface of cloud vs on-premise​; let’s dig into a few of the key differences that should start you on your decision-making.

On-premises

In recent years, on-premise has been the predominant go-to for businesses. This software requires the purchase of a license or copy to use it, and resides on your self-hosted infrastructure. Being installed in-house within your data center, you're ensured complete control over your IT assets, like data and hardware.

On-premise software is ideal if security and direct oversight of your systems are a priority or for businesses in highly regulated industries. However, as times change, on-premise is becoming more costly and intricate to manage…

Cloud computing

Cloud computing has a pay-as-needed mentality, allowing you to scale and develop depending on your overall usage - user requirements, software expansion, and data backup, for example. Since you only pay for the resources you use, cloud computing is a great fit for businesses experiencing rapid expansion and global reach. Plus, it allows for seamless and swift communication between customers, partners and other businesses.

The Pro’s and Con’s

That’s just the tip of the infrastructure iceberg when it comes to on-premise software vs cloud​; now let’s get to the nitty gritty!

There’s a treasure trove of discovery when comparing the benefits of cloud computing vs on-premise​, but there’s arguably a lot of disadvantages to both; it all comes down to what works for you. So let’s break down the concerns and advantages of on-premise vs cloud​.

Advantages/Disadvantages of on-premise computing

On-premise Pros

1. Control Whether it's control over your data, software, or system maintenance, an on-premise solution lets you take the reins, you have total authority! This is a big plus if you want to take charge of how quickly things change across the business, software upgrades for example..
2. Connectivity With no reliance on third-party support, there's no threat of issues someplace else affecting your on-premise connectivity. With swift access to software, on-premise solutions don't need to worry about internet issues from an external provider.
3. Security When it comes to cloud security vs on-premises security, on-premise has the upper hand. As we mentioned above, if your business sits in a landscape with particularly sensitive data - banking, healthcare or government for example, a certain level of confidentiality is required. With protection being placed in-house, an on-premises environment provides security that's closer to the chest.

On-premise Cons

1. Investment Yes, it may give you total control of your infrastructure, but that isn't cheap. When it comes to cloud costs vs on-premise costs, there's a big difference. Setting up your own computing infrastructure requires upfront costs, and there's a lot to buy into. Physical servers, hardware repairs, security - it all adds up. With the cloud, that cost goes down drastically.
2. ScalabilityIt's not just the price to consider, it's the time too. If everything lies in-house, expansion can't be done by an external source or through the cloud. Not only does this heighten costs even more so, but it also means extensive installation times for new hardware. This can slow down operations and limit scalability.
3. Hybrid working Having everything in one place has its own cons, too. If your business is booming, and employees aren't always at the office, this can create significant challenges when managing off-site assets. Remote working means installing and upgrading software can take even longer, with technicians needing to make out-of-office calls or employees needing to come in. Either way, hybrid-working can’t operate at its full potential.

Advantages/Disadvantages of cloud computing

Cloud Pros

1. Cost When it comes to on-premises vs cloud computing​ in terms of cost, the cloud takes the cake. Cloud computing offers subscription fees to businesses, meaning maintenance and upgrade costs are taken out of the equation. With data centers and servers also being chopped from the budget. Having these variables taken care of by a third party removes a huge chunk of costs you may need to dish out when compared to an on-premise solution.
2. Flexible The digital economy is always shifting; changing things up is all part of the game. Cloud computing is swift, which allows your business to move and adapt to conditions and requirements on the fly. For example, with this flexibility, you can adjust server resources quickly or employ current market trends without hassle. This is a fantastic selling point if you're looking to stay ahead of the curve and stay competitive.
3. Real-time collaborationWith cloud computing, everything runs in real-time, which means working together is easier than ever! Document sharing, editing and communication can happen anywhere, anytime. Ultimately, this allows for better collaboration across teams and smoother operations throughout the entire business.

Cloud Cons

1. Internet-reliant With cloud computing, the reliance on robust connectivity is much more imperative. If your internet drops and outages occur, there's not much you can do until off-premise servers are up and running again. With cloud-based services potentially facing issues due to internet instability, it's crucial you have a reliable internet service to ensure cloud computing can be utilised to its full potential.
2. SecurityAs we discussed earlier, in-house protection monitored through an on-premise infrastructure gives your business a greater level of control. That's not to say security is out the window when it comes to cloud computing; providers will carry out detailed encryption and vulnerability checks to ensure everything is secured. However, potential data and privacy risks can occur. Unauthorised access and breaches will happen if security isn't up to par, so it's crucial that software is up-to-date and ready to tackle the latest cyber threats.
3. Limited control While having a third party handle your computing comes with a lot of perks, one thing on-premise infrastructure has in spades is control. In more regulated industries, having a cloud provider manage your IT environment can be problematic if you can't oversee every intricate detail. On top of that, while the cloud is definitely flexible in terms of scalability, customisation can take a hit. Cloud applications tend to standardise your infrastructure, limiting the choices your business has to meet specific needs. This can result in cloud services not being used to their full potential.

How to choose between on-premise and cloud computing

So, how does one choose between on-premise software vs cloud​ infrastructure? It’s no easy choice, whatever you pick can have a major impact on your business operations.

Overall, it comes down to these factors:

• Cost
• Scalability
• Customisation
• Security

The cloud is the perfect solution for businesses with costs in mind, flexibility & scale, and remote working. On the other hand, on-premise infrastructure gives you greater customisation and close-to-home security.

It all comes down to your unique needs - what do you want from your computing? Carefully assess all these factors before making a decision; it will only ensure you've picked the best solution for your operations. But hey, maybe Focus Group can help with that?

Working with Focus Group

At Focus Group, we can offer expert guidance in IT infrastructure, and help you get set up with the perfect software for your business.

If you’ve come to a decision already, and are looking for cloud services, our solutions have been designed to lower IT support costs, increase agility and create opportunities for innovation. Plus, we’ve put emphasis on cloud security to ensure your data and applications are fully-protected.

On the other hand, if you’re looking to up your on-premise infrastructure, we have a wide range of services that can boost your communication requirements, such as our On-premise PBX phone systems.

So, whether you’re taking to the skies with innovative cloud computing, sticking with tried-and-true on-premise systems, or just want some advice on what your next move should be, get in touch with our team today.