We know that there are several differences between on-prem solutions and a cloud environment. Each organization must weigh the pros and cons before deciding which one will be the perfect fit. In this article, we show you some key topics to consider when choosing the right solution.
So, let’s talk about the differences between Cloud and On-prem Solutions!
1. Deployment
On-Premises: with on-premises software, the deployment is done in-house and within the company’s IT infrastructure. The company is responsible for maintaining the solution and all its related processes.
Cloud: with a cloud solution, the deployment is done on the premises of a third party, the service provider. The company has access to its resources and may use them as much as they want or need at any given time. The related processes are taken care of by the host-cloud service provider, though.
2. Control
On-Premises: in an on-premises environment, the company has complete control over their systems. It retains all its data and fully controls what happens to it – for better or worse. In this scenario, there’s 100% privacy.
Cloud: in a cloud computing environment, data and encryption keys reside with the third-party provider, and the ownership is shared – something many companies struggle with.
3. Security
On-Premises: security is a crucial requirement of any organization when it comes to the financial account, and customer and employee details. Even though traditional on-premises software seems to be more secure as it is in-house, there are multiple procedures that need to be taken to fully maintain data security.
Cloud: with Cloud ERP systems there are very less chances of any hardware, software, or infrastructure malfunction that can hinder the entire operation and result in significant losses. Security concerns remain the number one barrier to cloud computing deployment, though.
4. Compliance
On-Premises: there are regulatory controls that most companies these days need to abide by, regardless of the industry. Perhaps the most common one is the Health Insurance Portability and Accountability Act (HIPAA) for private health information, but there are many others. To meet these government and industry regulations, it is imperative that companies remain compliant and know where their data is at all times. If all the data is maintained in-house, this can be easily done.
Cloud: companies that opt for a cloud computing model need to ensure that the third-party provider is being compliant and meeting the regulatory obligations within their specific industry. It is important that sensitive data is secured. Customers, partners, and employees must have their privacy ensured.
5. Cost Comparison
On-Premises: an on-premises solution requires a lot of effort and is very expensive – not just because of the initial investment, along with the purchase of additional infrastructure and processes, but also, the maintenance and operating costs that the company will have to carry on an ongoing basis.
Cloud: a cloud service is a lot more cost-effective, especially for those that are small in size. The setting up and run-time are cheaper and faster. A small subscription fee must be paid, and updates and maintenance are taken care of by the cloud host.
6. Mobility
On-Premises: on-premises systems often require third-party support to access the solution remotely, which increases the risk of security and communication failures.
Cloud: mobility and flexibility are two of the strongest features of this solution. With a cloud solution, you just need to have an internet connection to access your data using a mobile device.
Do you have any questions about this topic?
Do not hesitate to contact us.
You can also read this article for more information on cloud solutions!