Cloud Vs On-Premises – Which is Better For Business?

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Written By Mohit Jha
Anuraag Singh
Approved By Anuraag Singh
Published On October 10th, 2022
Reading Time 7 Minutes Reading

This guide contains a detailed comparison of cloud vs on-premises to understand the benefits of each technology. Here, we will also explain the core things that provide a clear idea for comparing both.

In today’s era, the need for technology is of paramount importance. Every enterprise is tech-savvy and so are its employees. Business is changing, more and more organizations are opting for cloud technology over the traditional system, due to its various benefits. However, before opting for cloud, it is important to know which one is better to boost your business productivity.

Unfortunately, there is no way of saying that one technology is 100% better than another. But, some of the factors can be taken into consideration that can help in determining which technology has more benefits than another. You need to understand your business require and know what are your needs:

Ask Yourself:

1. Does your employees require remote access of the data more frequently?
2. Is your business require a central management system?
3. Do you face storage space issues in local computers?

Knowing the answer to the above question & the difference between cloud vs on-premises will help you in a better understanding of the technology that is best for your organization.

cloud vs on-premises demand

Something You Should Know About Cloud Suite?

Cloud suite is an online storage platform provided by the service providers like Google, Microsoft etc. The cloud platform provides a secure and safe environment for data storage. The online data storage gives the user access to it anywhere, anytime, and from any device.

It helps the organization in 24×7 service where the data can be accessed by just using the browser. Even if the user is at a remote place, he doesn’t have to worry at all. He can login with the credentials and do his work hassle-free.

Advantages of Cloud Platform

  • Online Data Storage
  • Secure and Safe Data
  • Easy access from anywhere
  • Data Storage Scalability
  • Protected data
  • Maintenance is negligible
  • Cost for only online service usage

Disadvantages of Cloud Platform

  • Can’t do anything in case of server breakdown
  • Uninterrupted internet connectivity is required at all times

What is On-Premise Platform?

On-Premise is a platform where the servers are located locally or on the premises of the organization. It requires proper infrastructure, software, and licensing for installation.

On-Premise requires a huge amount of capital investment for installation and maintenance. It has to be deliberately maintained and monitored in intervals. It is required to ensure an uninterrupted flow of data transmission.

Advantages of On-Premise

  • Full control over services
  • Maintenance by IT Specialist
  • Secure environment
  • An easy approach to address the technical glitch

Disadvantages of On-Premise

  • Installation of the server requires a big room
  • High cost for training, support, infrastructure and software updates
  • Maintenance is required by special IT experts
  • Breakdown may incur high costs
  • Increase risk of data loss
  • Provides limited data storage

Comparison between Cloud Platform and On-Premise Platform

  • Cloud Platform is the most preferred platform for organizations as it securely saves the data online whereas On-Premise stores the data locally and can be easily misused by an unknown user.
  • Cloud Platform allows easy access of online data from anywhere and from any device just by using the credentials whereas On-Premise provides access to data only desktop based. The data is stored locally therefore access is limited to local devices only.
  • Cloud Platform does not require any technical support or maintenance from the user’s end as it is done in the back end. On the other hand, On-Premise requires to start till end maintenance and technical support as it is built in-house.
  • Cloud Platform provides ample data storage. It can be increased or decreased as per the need of the organization. Whereas On Premise does not provide enough data storage. The external hard drive has to be installed in case of more data storage.

Note: After getting the overview of cloud vs on-premises, you can decide which one is best suited for your organization. But, if you have still want to know the key difference then read the next section.

Key Differences between Cloud Vs On-Premises

Features On-Premises Cloud

Deployment

In an on-premise environment, the resources are in-house and the enterprise is accountable for it. The enterprise is responsible for its solutions and managing it. The resources like the server is not in the house. It is maintained fully by the third party. The enterprise is not responsible for any kind of problem that may arise due to the server or back-end.

Cost

The enterprises that go for on premises have to bear all the costs associated with it. The costs may include hardware installation, power consumption and space. In a cloud platform, the enterprise does not have to bear any costs related to the back-end server except the services that it avails.

Control

In an on premises, the server is located on the company premises. The transfer of data, information and resources are fully controlled by the enterprise. It allows and restricts the type of data that has been specified as per the enterprise. In a cloud platform, full control cannot be expected. The transfer of data, information, and resources takes place in the cloud freely. So, therefore it might be susceptible to third-person interruption.

Security

The enterprises that have extra sensitive data and do not want to lose it at any cost. In such case on-premises suit the best. Enterprises like banks and government agencies are prone to risk. For them, the data is the key resource of their organization. Therefore, security concern is on top priority. In cloud, the security risk is always there. Since it gives the facility to access from anywhere. The hackers may take an undue advantage out of this. The data on the cloud becomes riskier. Even the risk may involve access to login credentials, intellectual property and may be prone to other security threats.

Compliance

There are many enterprises that look for compliance. Such examples include healthcare, education, and many more. The agenda of such enterprises is to see that the data integrity is not lost. In such a case they may opt for on premise as it can be controlled and be vigilant. Enterprise that opts for cloud platform should ensure that it provides compliance with the regulatory measures. The data and the transaction with the customers and suppliers should remain intact with privacy measures at all times.

Final Thoughts

Understanding the difference between cloud vs on-premises may help you in deciding the technology that’s best for your business. According to tech experts, the future of business is on online cloud platform, as its disadvantages are almost negligible. On the other hand, the cloud has multiple advantages that can provide a greater boost to any business organization.

So, now keeping in the mind, the pros and cons of cloud and on premise, it has been analyzed that the cloud platform covers all the features that an organization demands than on premise. It fulfills the organization’s demand to provide a secure, accessible, and reliable platform. It also saves time, effort, and cost.

Therefore, if you have decided to migrate data from on-premise to cloud, then you can take the help of an automated Cloud Migration tool from SysTools. It is a robust, affordable, and safe tool to migrate complete data over to the destination cloud platform.

  author

By Mohit Jha

Mohit is a Microsoft-certified expert who has assisted thousands of clients with Outlook & Microsoft Office 365 issues. He enjoys writing on email clients as well as data migration. He is always excited about giving troubled readers the most up-to-date knowledge, explanation, and refinements.