Cloud vs On Premises Applications

When implementing applications for your business, there’s a lot to think about. Once you’ve decided on what your business needs, you’ll need to decide on the type of software. Typically, there are two main options to choose from, and they are cloud-based software as a service, or SaaS, and on-premise applications.

Simply put, the biggest difference between cloud and on-premise applications is where they live. Cloud-based software lives digitally in the cloud, while on-premise applications will be installed on your in-house servers. Before jumping into a decision based on the best deal you found online, it’s important to weigh the pros and cons. Let’s look at cloud vs. on-premise applications and which one is right for you.

Cloud Software

To start, cloud software is SaaS that other organizations own and businesses can purchase from them. It’s housed in the cloud on their servers, and they are responsible for storage, databases, and software.

Think of it as essentially renting the software from someone else. They do all the work, and you pay a fee to use their software as a service (SaaS). Yes, this is a very convenient way of using applications, but keep in mind that there are pros and cons when making your decision.

Pros

• As you scale your business, cloud-based software can grow easily with you

• The organization is responsible for repairs and maintenance

• You’ll save on energy costs with less hardware

• The company will automatically update it and you won’t have to upgrade the hardware

• High-security because the organization likely has a bigger budget it for it than your business

• You’ll be able to deploy it quickly since it’s cloud-based

Cons

• If there's a disruption in connection and the application crashes, you are reliant on the organization you purchased it from

• You will be limited in customization since it was created by someone else

• Internet is necessary for it to function

On-Premise Software

When you choose on-premise applications, it’s going to be exactly what it sounds like. You’ll need to purchase all of the equipment to have in-house to operate your applications. This includes software, hardware, computers, and anything else you think you’ll need. One thing to consider is that on-premise may cost more due to needing to purchase software and having employees maintain it.

Pros

• Your data is stored locally, so you won’t have to worry about cloud security breaches

• You aren’t totally reliant on the internet to use your applications

• You’ll have more customization options since you’re not sharing the application in the cloud

Cons

• You’ll need to factor in the cost of employees who will need to maintain the application

• Employees will also need to keep up with software updates and maintenance

• Hardware will need to be updated accordingly

• It takes longer to install due to needing the application to be installed on individual devices

Conclusion

To sum it up, both cloud and on-premise applications are powerful tools for your business. Which you choose is going to ultimately depend on your needs as a company. If you’re running a business with a small budget, cloud-based is probably best. If you have a strong need for private data and don’t want any security risk, you could try on-premise.