Cloud Computing Comparisons: On-premise vs Cloud


The effectiveness of cloud computing solutions depends on how suitable they are to your business requirements. When setting up your IT infrastructure, one choice to make is whether to get on-premise or cloud computing.

The debate on which of these two solutions is better is never-ending. As a business owner, what you can do is understand how each system works and the major differences. It will be easy to tell which option aligns with your business needs.

Choosing between infrastructure deployments

On-premise environment

On-premises refers to the installation of a network system at a physical location, an in-house IT environment. The data centers are in your building, meaning that you have control over them. Private ownership defines on premise IT infrastructure. Some companies lease various aspects of their infrastructure. The data centres are tailored to the specific needs of your enterprise. On-prem is the conventional data hosting solution mainly because of this data control.

However, the maintenance of this kind of infrastructure requires a higher level of investment as the bussiness is the one in charge of hardware set up, licensing, integration capabilities, and IT employees.

Cloud Solutions

Setting up your network on the cloud means that the data centers are virtual. Data owners can access the network remotely. A company has to buy the services from a vendor. As known, Cloud computing comes in different types:

  • Software as a Service (SaaS) is where the service provider handles everything, and you only have to pay for what the business needs.
  • Infrastructure as a Service (IaaS) is where the infrastructure belongs to you, and you can use it for various activities.
  • Platform as a Service (PaaS) is a platform for the development and hosting of company's applications.

Some key differences between instances

The deployment is the glaring distinction between on-prem and cloud. With on-premises solutions, compute tasks deploy in-house. If it's on the cloud, data centers run by the service provider are responsible for the different jobs. However, if deployed on public, private or hybrid cloud, the owner still has complete access to those resurces, whenever they want. 

Because the data centers and servers are in your care, with on-prem you have to deal with the maintenance. Depending on the size of the infrastructure, you might have to hire an in-house IT team to monitor all infrastructure. Cloud solutions save you the stress of maintenance because the role falls on the service provider. That gives you advantages such as quick scalability and upgrading according to your bussiness demands.

The upfront costs of installing an on-premise network can add up fast. You have to invest in hardware, software and labour. Then there is the cost of running the system, including power. You must also factor upkeep expenses that range from backups to system upgrades. On the other hand, a cloud system is cost-efficient because you only pay for what's required.

In terms of security, with on-premise you can control the physical security and mitigate against the specific threats to your businesses, in fact, this could be one of the powerful advantages of this enviroment. On the other hand, cloud solutions require you to entrust your security to the service provider. Nowadays, cloud providers work to ensure better security and higher availability times. 

Even with all this information, you can't say outright that one alternative is better than the other. It's a matter of what works for your business. For instance, if you need a high level of control, then on premise computing could the most sensible pick. However, if your business is highly scalable, then the cloud is more practical. Analyzing the needs of your company is the best way in order to make the best decision. 

And if you are ready to migrate your systems to the cloud, we invite you to download our free paper about Linke's solutions  AWS Connector for SAP.

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