On Premise vs Cloud Computing: Key Differences

As a business owner, one can be quite confused about the different types of servers that can be used, on-premise vs cloud computing being a major point of debate. On-premise is a more traditional IT (Information Technology) infrastructure method where the physical hardware, software, and data are stored on-site. Cloud computing is a fresher take with data storage and software made available over the internet and accessible for remote work.

Choosing between them can be tough, but the COVID-19 pandemic led to the large-scale adoption of cloud computing since remote work became the norm. As of 2021, it was predicted that the total spending on public cloud services would reach up to 304.9 billion dollars, with a growth of 18.4%. But does this change in wind definitively make cloud computing better than on-premise? There is a lot more to the technology of on-premise and cloud computing systems, which, once elaborated, can help you decide what’s right for your business. We elaborate on all the details below. 

An Overview of On-Premise 

On-premise consists of an IT infrastructure comprising systems, hardware applications, and software applications. With an on-premise system, you get complete ownership of your servers, and you can personally oversee the maintenance of your systems. On-premise systems were the traditional method until cloud computing slowly started taking over. One of the major differences between cloud computing and on-premise is the local storage and physical maintenance of systems.

If a business chooses to adopt an on-premise system, it will be responsible for installing in-house servers and related hardware. The company will also have to employ IT staff to continually maintain the infrastructure to prevent malfunctions in the system that can lead to data breaches and data losses. Also occasionally known as “Shrinkwrap software,” on-premise software requires a license per server, after which the servers are completely the company's responsibility, including management and security. However, businesses can request after-sales tech services from their vendors.

On-premise systems are ideal if your business requires customizable hardware or systems that can be built to match your purposes. However, there is less scope for scalability with on-premise systems. With on-premise, you do not have to rely on internet access or connectivity to access your required software, and as a result, there is less scope for wastage of time.

An Overview of Cloud Computing

With cloud computing, you can get your required IT services on-demand and request them from anywhere via the internet. A widely used deployment technology, cloud computing is known for its accessibility and ease of use. There are three different types of clouds that businesses can use. 

The first one is the public cloud. These service providers own all the required hardware and software systems and use them to deliver your resources over the internet. 

The second type of cloud is the private cloud, which is used exclusively by a single organization or business by installing servers in-house. Businesses can implement this either with the help of their in-house experts or by hiring a third-party service provider to deploy their private cloud.

On-premise is a private cloud service where you must set up your deployment software and infrastructure within the business’s premises. Since the business has its own data management center and software deployment infrastructure, there is no question of privacy breaches internally.

You can get your on-premise private cloud system deployed by reputed service providers by purchasing a license for the servers from them. They will also provide tech support whenever necessary. In addition, such organizations employ experts who have completed AWS Cloud Practitioner Essentials Certification Training or Azure Infrastructure Certification to help them build and manage their cloud computing solutions. Lastly, hybrid clouds include both public clouds and private clouds, wherein the workloads are managed between the two. One of the greatest merits of adopting hybrid clouds is that it provides the organization with more flexibility and security.

Comparing on-premises vs cloud computing is the only way to determine which is right for your business.

Key Differences Between Cloud and On-Premise

The major difference between on-premise and cloud computing is that on-premise infrastructure allows you to store data and run services locally. In contrast, cloud computing must be accessed over the internet, with your data and services saved on the service provider's servers.

One of the most common questions business owners have is: is cloud computing cheaper than on-premise? 

On-premise systems can cost more than cloud computing since they require physical installation of hardware and maintenance. On the other hand, cloud computing has only a subscription cost, which varies according to the business’s requirements. Another key difference between on-premise and cloud computing is mobility. On-premise systems can be inconvenient since they involve in-house infrastructure that cannot be used for remote work. In contrast, cloud computing systems can be accessed via the internet globally.

Security-wise, both systems have their pros and cons. For example, on-premise systems can face a malfunction that can lead to data theft or losses, which can bear a high cost on the company. On the other hand, internet connection stability and computer security play important roles in cloud computing security. Check more on the advantages/benefits of cloud computing vs on premise. 

Cloud Advantages

The adoption of cloud computing has increased over the past few years, with internet connections becoming more reliable and remote work becoming the norm. As of 2020, the cloud computing market was valued at 371.4 billion dollars. This figure is set to increase in the foreseeable future. So is the demand for cloud computing professionals and cloud computing training courses in the IT skill market. One of the main reasons people shift to cloud computing is the benefits of cloud computing vs on-premise.

1. Cost-Effective 

A major merit of employing cloud computing systems is their low cost. Businesses must only worry about the subscription cycle with cloud computing systems and not worry about maintenance and upgrade costs.

With cloud computing, the business does not have to go through the hassle of maintaining physical infrastructure that can malfunction, leading to data theft or loss. This saves the business thousands of dollars. 

2. Accessibility

With cloud computing systems, you can easily access software, data, and services over the internet without hassle. You get the applications you want on-demand through any device.

This accessibility also helps improve collaboration between groups of people as they can easily access the cloud storage and share information between themselves, improving productivity.

3. Easy Installation 

Unlike on-premise systems that take time to install, cloud computing is easy to deploy and can be set up within hours. An expert service provider can deploy cloud computing systems in your servers within minutes, saving your business a lot of time.

On-Premise Advantages

On-premise systems were widely used for several advantages: 

1. Absolute Control 

With on-premise, you have full control of the data, the hardware systems, and the software, and you can even monitor the maintenance processes up close. Furthermore, you have control over what upgrades to make. 

2. No External Factors 

Since internet connectivity and other external factors do not come into the picture here, on-premise systems can save you a lot of time when it comes to accessing the software.

Why is Cloud Better than On-Premise?

Making a cloud computing vs on-premise cost comparison, we see that the initial capital investment for an on-premise system is quite high, going up to thousands of dollars. On the other hand, cloud computing is much cheaper and entails paying for a subscription. With cloud computing, businesses can upload their data to a public or private data storage system and access the required software services on demand. The need for physical space, huge capital investments, and technical expertise is eliminated.

The management of the physical infrastructure, periodic upgradation of the plans, and the requirement of IT staff to keep the system running properly all add to the cost of deploying an on-premise system. On-premise systems require continual maintenance, but cloud computing services remove this obligation. Cloud software deployment is much easier than on-premise software as it does not require a physical server, and deployment can be done in a matter of hours.

Cloud computing systems can be scaled up or down the organization’s requirements, thus offering more flexibility. You can also choose from the public, private, or hybrid cloud systems according to your requirements and feasibility. Cloud computing systems can be scaled up or down the organization’s requirements, thus offering more flexibility. You can also choose from the public, private, or hybrid cloud systems according to your requirements and feasibility. 

Which is Right for My Business?

Both on-premise and cloud computing systems have advantages and disadvantages, but both are effective solutions for providing services and storing data. The deployment of a particular cloud environment for your business should depend on your resources. Before deciding on a cloud environment, ask yourself these questions:

• How much capital investment can you afford? 
• What are your safety requirements, and do you have the tools to ensure first-class safety? 
• Do you have an office space to install your system locally? 
• Do you prefer recurring payments or initial one-time payments for your system? 
• Do you require on-demand services, and how much uptime do you require? 
• Do you require a scalable system? 
• Do you require a customized system for your business? 

It is also necessary to employ a workforce that is well educated and has undergone the required training in courses such as KnowledgeHut’s cloud computing training courses. This will aid you in deploying the right choice and maintaining them accordingly to avoid data breaches and malfunctions. Explore our enterprise learning solutions to get your tech workforce ready for digital disruption. 

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Conclusion

Before you decide on an IT infrastructure, it is best to have a cost-benefit analysis. There are several service providers that can provide you with public cloud, private cloud, or hybrid cloud services, depending on your needs. But when it comes to installing on-premise systems, you will need to hire a third party or rely on the in-house IT team to build it. It also helps to jot down your exact requirements and budget – this will ensure you make an informed decision.