On-premises and cloud software solutions are, at their core, similar. Each provides a service or solves a problem your company is facing. It could be data storage, patch management, or protecting endpoints, — basically, anything and everything that powers and protects your business.
However, beyond the core function, on-premises and cloud solutions are quite different, particularly in terms of maintenance, security, back-ups, and ownership. What are the differences, and why do they matter to your business? Here’s what to know.
Key Differences Between On-Premises vs. Cloud Computing
At first glance, it seems the main difference between on-premises solutions and cloud computing solutions is location. But it’s so much more than that. The difference between on-premise and cloud solutions lies in who owns and is responsible for their infrastructure and ongoing operations.
As the name implies, on-premise means “on site.” The software is installed locally, meaning it’s on the servers, computers, or other hardware that you lease or own and are physically located in your office. It also means you’re responsible for:
- Maintaining the infrastructure
- Ensuring uptime, availability, and performance
- Managing security configurations
- Testing and deploying updates
- Having a backup and recovery plan
Cloud computing is stored and managed remotely. You access the program online, using a browser or app, and none of the hardware that runs the software is located on-premises. Because everything is in the cloud, your provider takes charge of ensuring uptime, managing security configurations, and nearly every other task associated with an on-premises solution, not your IT team.
What Is On-Premises Software?
On-premises software (sometimes called on-prem or self-hosted) is the software or programs you install and run on your on-premises infrastructure. You purchase one or several software licenses, then host and run the program in-house, giving you full control over how the software is deployed and managed.
Advantages of On-Premises Solutions and Software
For a long time, an on-premises environment was the only way to use any and all software your company needed. Given the advantages, an on-premises solution may still be the right choice for your company.
- Full security control. Because the software runs on your on-premises infrastructure, your IT team can configure on-premises security settings exactly how you want and need. You choose the tools, protections, and scheduling that work for your company, instead of being subject to what a cloud provider decides.
- Meets regulatory and compliance requirements. Some industries require you to keep some or all of your sensitive data on site and may even prohibit you from using cloud providers or cloud computing to maintain data security.
- Greater control over network and bandwidth. Because the software runs locally, performance doesn’t depend on a strong or stable internet connection, and won’t slow down when there’s increased traffic to your company’s website. What’s more, when the internet goes down, your business can keep critical functions running.
- More customizable. On-premises software is also easier to customize. This is particularly important when you have legacy systems or configurations that may not be as easy to integrate into a cloud solution.
Disadvantages of On-Premises Software
While using on-premises solutions has advantages, there are distinct disadvantages:
- Ongoing costs. Running on-premises software requires ongoing maintenance. You’re responsible for the upkeep of the on-premises data center or server and replacing that hardware when it reaches the end of its life. What’s more, you’ll likely have higher energy bills to pay for the increased power usage and cooling the equipment.
- Need in-house support. Because everything is located on-premises, you need a team to track and manage everything from license renewals to emergency repairs on in-house servers. Depending on organizational size or budget constraints, getting the right team in place can be complicated and expensive.
- Responsible for recovery. You’re also totally responsible for not only backing up the data but storing it responsibly and safely. It also means you have to have a data protection or recovery plan in place, particularly when you have to manage or maintain sensitive data.
- Harder to support remote and distributed teams. If your company supports hybrid or remote work, you need to harden your security measures to prevent data breaches. This could mean configuring VPNs or other customizations to ensure your remote team members can access what they need when they need it.
What Are Cloud Computing Services?
Cloud computing is software and data storage that’s accessed via the internet, instead of installing and accessing your software on-premises. In a cloud computing model, you “rent” the resources you need from a cloud services provider, and they maintain the cloud infrastructure. They update the software, configure security settings, and ensure your employees can access whatever they need online.
Advantages of Cloud Computing Services
Cloud computing offers some compelling advantages over on-premises solutions:
- More flexibility. Cloud services let staff access whatever they need, wherever they need it, no matter where they are or what kind of device they’re using. Staff can log into your systems while they’re on the road and access the resources they need to stay up-to-speed and productive.
- Greater cost savings. Cloud services often have fewer upfront costs compared to on-premises solutions. They can also offer long-term cost savings, since you don’t have replacement or maintenance costs for physical hardware outside of company-issued endpoints.
- Agile. Cloud solutions are generally more agile than on-premises systems. You can easily scale your usage up or down whenever your business needs change, and it’s easier to deploy updates and patches to your endpoints.
- Simplified maintenance and upgrades. Most cloud-based services handle software upgrades, routine maintenance, and infrastructure updates themselves. Your in-house team doesn’t have to plan and implement every upgrade or patch, leaving them free to work on other tasks.
Disadvantages of Cloud Computing Services
Despite the advantages of cloud-based systems, the disadvantages could prove too much for your company.
- Unclear data ownership. Because your data lives on the provider’s cloud infrastructure, it may not be crystal clear who owns all the data or what happens to your data if you decide to move to a different cloud service provider.
- Provider availability. Not only does your data live on their cloud storage, so do the encryption keys and IT infrastructure. If something goes wrong on their end, you may be unable to access the services you need to keep your company up and running.
- Need a reliable internet connection. Because everything is accessed online, even a small, localized outage can impact your ability to work.
- Less security control. While you handle some of the security configurations (like requiring employees to use 2FA and access control levels), you won’t configure every aspect. If the cloud security is misconfigured or their data centers are hacked, your information could be at risk.
- Managing software upgrades. Your IT team has to plan, test, and implement every update. And depending on the software or the update, that may mean coordinating downtime and troubleshooting issues on the fly.
What About Hybrid Cloud Solutions?
When you’re comparing cloud and on-premises solutions, you may discover that each solution has some of the tools and services you're looking for, but not all of them. That’s where a hybrid cloud provider comes in. They’re a cloud and on-premises solution, giving you the best of both worlds.
Hybrid cloud computing combines on-premises storage systems and infrastructure with cloud-based access, allowing you to run some things on your local IT infrastructure and others in a cloud environment. This flexibility allows you to pick and choose where you run something, ensuring you’re using the right environment for the right task.
Advantages of Hybrid Cloud Solutions
Like a cloud computing environment, hybrid cloud solutions allow you to easily scale without requiring you to buy additional server hardware. You’ll only pay for the cloud storage and hybrid cloud infrastructure you use, often making it a cost-efficient solution.
Hybrid cloud solutions are similar to on-premises systems in that you have more control over security settings and the ability to manage employee access. You can store your sensitive or regulated data in your on-premises servers and use the cloud systems for less sensitive tasks.
A hybrid solution can also improve network performance. You can choose which applications to run in the on-premises environment or cloud environment, which can be helpful when internet connectivity is spotty.
Disadvantages of Hybrid Cloud Solutions
Hybrid cloud setups can be more complicated to configure and run. Because some things operate using on-premises systems and others in the cloud, you’re responsible for tracking how both environments are configured, monitored, and maintained. When you run into issues, diagnosing the cause may be complex. Is it the cloud side or the on-premise side that’s the issue? Or is something misconfigured, and it’s both?
Using two environments may save on upfront costs, but over time, those cost savings may disappear. You may not have as much on-premises infrastructure to maintain, but you still have some, requiring in-house staff to support it. What’s more, if you’re not keeping close track of how much cloud storage you're using, you may end up with significant cost overruns.
Adaptiva Cloud Relay Helps You Balance
Choosing between on premises vs. cloud computing solutions comes down to tradeoffs. On-premises solutions give you control but require the team to manage the infrastructure. Cloud solutions remove that burden but may limit how much control you have over where and how systems run.
Hybrid solutions bridge that gap. but only when they reduce complexity. and Adaptiva’s OneSite Platform with Cloud Relay does exactly that. Instead of managing services, networks, and availability across locations in-house, Cloud Relay provides a secure, distributed, multi-region architecture built for high uptime and performance. You keep on-premises control and caching, while Cloud Relay makes deploying patches, updates, and content to on-premises and remote endpoints easy, helping you scale with speed and efficiency.
Contact us today to schedule a demo and learn more about Cloud Relay and Adaptiva’s OneSite Platform.
