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Key differences between on premise and cloud

by Rinku,on Dec 02,2020

There are companies that still opt for on premise solutions as opposed to the cloud. Both approaches bring something unique to the table but only after proper consideration can you determine which type of solution would be a perfect fit for your organization .Below are some of the key things that you need to consider when choosing between an on premise and cloud solution.

Deployment

On Premise :- With on premise software the company remains responsible for maintaining the solution and related processes. The deployment is done in house using the company’s infrastructure.

Cloud: In a hosted cloud, the service provider maintenance the systems on their server, accessible by the enterprise at any given time with related processes taken care of by the host-cloud service provider.

Control

On premise: In an on premises environment, enterprises enjoy complete control over their systems and maintain 100 percent privacy. These are two reasons why most big organizations choose to stay away from the cloud.

Cloud: In a cloud computing environment, even though the data and encryption keys are shared with the third-party provider, there is shared ownership and accessibility remains an issue if there is to be any downtime.

Security

On premise: Security is an essential requirement of any organization when it comes to financial account, customer and employee details. Even though traditional on premise seems more secure as it is in-house, there are multiple measures that need to be taken to fully maintain the security of the data.

Cloud: With Cloud ERP systems there are very less chances of any hardware, software of infrastructure malfunction that can hinder the entire operation and result in hefty losses. The ERP vendor is more likely to have multiple disaster and redundancy protocols for data security. For both platforms, reliable network connectivity plays a very important role when it comes to remote areas.

Cost comparison

On Premise Cost: A system from the ground up requires a lot of effort and comes at a hefty cost. Not just 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 incur on an ongoing basis.

Cloud Computing Cost: Comparatively, a cloud service is a lot more cost-effective, especially those that are small in size. The setting up and run time is cheaper and faster. Companies have to pay a nominal subscription fee, whereby the updates and maintenance by the cloud host.

Mobility

On premise: On premise ERP systems can be accessed remotely but often requires third-party support to access the solution and a mobile device. This increases the risk of security and communication failures. Requiring several security measures need to be in place if employees to access files on personal devices.

Cloud: With cloud systems, you need to have internet connection to access your data using a mobile device. Mobility and flexibility thereof is one of the strongest features of this solution. This enables your employees to work from anywhere at any time, resulting in higher rates of engagement.

Key differences between on premise and cloud

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