On Premises Vs Off Premises (Cloud Computing )

There has always been a never-ending debate over On-Premise vs Cloud Computing, and which among the two is better. In this blog I will try to explain everything that one should know about this topic. In the current era of expanding IT enterprise, one must consider whether an On-Premise architecture or Cloud Computing will serve the purpose better.

Before building your architecture, it is essential to decide if you want to manage your infrastructure locally (by yourself) or let a third party manage it for you. These factors regarding your environment must be taken care of for smooth operations. Now as you know why we are here, and what are we going to learn, let’s dig deep into this On-Premise vs Cloud Computing blog.

What is on premises ?

A solution hosted in-house and usually supported by a third-party. On-Premises Services are installed and operated from a customer’s in-house server.

Let’s talk about a topic that interests a majority of people: money. In general, you have your money in your wallet and in your bank account. Here, the wallet is your On-Premise environment. On-Premise means that a company keeps all its data, servers and everything in its IT environment in-house. The company is responsible for running, supporting and maintaining the data all the time. This is the traditional way of hosting your architecture.

What is a cloud computing ?

A simple definition of cloud computing involves delivering different types of services over the Internet. From software and analytics to secure and safe data storage and networking resources, everything can be delivered via the cloud.You probably use different cloud-based applications every day.

For businesses, cloud computing means improved collaboration and productivity, as well as significant cost reductions. It means better data protection, improved availability, and expanded access to cutting-edge technologies

Now lets take a preview of advantages and drawbacks of both ON-PREMISES and OFF PREMISES (CLOUD COMPUTING ).

ON PREMISES ADVANTAGES :

Total Cost of Ownership — Since you are only paying for your user licences once, an on-premise solution can have a lower Total Cost of Ownership (TCO) than a cloud system.

Complete control — Your data, hardware and software platforms are all yours. You decide on the configuration, the upgrades and system changes.

Uptime — With on-premise systems, you do not rely on internet connectivity or external factors to access your software.

ON PREMISES DRAWBACKS :

Large capital expenditure — On-premise systems usually require large upfront purchase which means capital expenditure (CapEx) is often required. On top you need to include maintenance costs to ensure support and functionality upgrades.

Responsibility for maintenance — With an on premise system, you are responsible for maintaining server hardware and software, data backups, storage and disaster recovery. This can be an issue for smaller companies who have limited budgets and technical resources.

Longer implementation times — On-premise implementations take longer due to the time needed to complete installations on servers and each individual computer/laptop.

CLOUD COMPUTING ADVANTAGES :

Anywhere and anytime access — You can access your applications anytime and anywhere via a web browser from any device.

Predictable costs — Benefit from predictable monthly payments that cover software licences , upgrades, support and daily back-ups.

High levels of security — Data centres employ security measures beyond the affordability of most businesses, therefore your data is often safer in the cloud than on a server in your offices.

Quick deployment– Cloud-based software is deployed over the Internet in a matter of hours/days because, compared to on premise applications which needs to be installed on a the physical server and each PC or laptop.

Scalability — Cloud technologies provide greater flexibility as you only pay for what you use and can easily scale to meet demand, for example adding and scaling back licences.

Lower energy costs — When you move to the cloud, you no longer have to pay to power on-premise servers or to maintain their environment. This significantly reduces the amount you pay on your energy bills.

CLOUD COMPUTING DRAWBACKS :

Connectivity — Cloud solutions require reliable internet access for you to remain productive.

Long-term costs — Although requiring a lower upfront investment, cloud applications can be more costly over the course of the system’s life cycle, increasing total cost of ownership (TCO).

Less customisable — Cloud software is typically configurable but depending on how it is hosted a cloud solution may not be able to cope with complex development .

Key differences of on –premise and cloud.

Security

On Premises: Companies that have extra sensitive information, such as government and banking industries must have a certain level of security and privacy that an on-premises environment provides. Despite the promise of the cloud, security is the primary concern for many industries, so an on-premises environment, despite some if its drawbacks and price tag, make more sense.

Cloud: Security concerns remain the number one barrier to a cloud computing deployment. There have been many publicized cloud breaches, and IT departments around the world are concerned. From personal information of employees such as login credentials to a loss of intellectual property, the security threats are real.

Control

On Premises: In an on-premises environment, enterprises retain all their data and are fully in control of what happens to it, for better or worse. Companies in highly regulated industries with extra privacy concerns are more likely to hesitate to leap into the cloud before others because of this reason.

Cloud: In a cloud computing environment, the question of ownership of data is one that many companies — and vendors for that matter, have struggled with. Data and encryption keys reside within your third-party provider, so if the unexpected happens and there is downtime, you maybe be unable to access that data.

Cost

On Premises: For enterprises that deploy software on premise, they are responsible for the ongoing costs of the server hardware, power consumption, and space.

Cloud: Enterprises that elect to use a cloud computing model only need to pay for the resources that they use, with none of the maintenance and upkeep costs, and the price adjusts up or down depending on how much is consumed.

CONCLUSION

There is dilemma or there is no right or wrong answer to the cloud vs on premise software .Every customer is different and has different requirements that will influence the choice of the deployment strategy.