On-Premise and Cloud: What's the Difference?

The Marketing Team
Jul 10, 2019 4:38:18 PM

In today’s world, employers have more options than ever to create a smarter, more efficient workplace.

Small businesses can now grow and access tools that they may not have been able to afford before, while large companies can keep their offices lean and efficient.

The trick, of course, is finding the right tools for the job.

On one hand, on-premise solutions allow you unmatched control over your system. On the other hand, cloud solutions give you the freedom to quickly and easily access the resources you need without worrying about the background management details.

Between on-premise and cloud solutions, which one is right for your company? Keep reading to find out a few essential differences.

Where They’re Housed

The first and most obvious difference is where they’re housed.

On-premise solutions, as the name implies, are housed on your own premises. They’re kept within a data center at your offices – for this reason, they’re sometimes referred to as the private cloud.

Cloud-based or SaaS solutions, on the other hand, are offered by a third-party provider. That provider houses the servers that run the system for you. All you have to do is pay a subscription fee to use the service, already set up and configured for your use.

Electricity and Bandwidth

Because on-premise and cloud-based solutions are housed in two different places, the cost of your bandwidth and electricity will vary based on what you use.

Picture this.

You’ve got your own system setup and managed by your IT team. To do that, you’ll need a server room with a consistent, reliable electrical source. You’ll also need the bandwidth to support running the system full time.

All of that directly translates into your electric and Internet bills.

Now let’s say that you’re using a third-party provider to accomplish the same result. You don’t have to worry about servers, you don’t have to worry about technical difficulties, and you certainly don’t have to worry about a rising electrical bill.

You just have to focus on your subscription fees.

Collaboration and Application Delivery

On-premise software solutions have been nicknamed the private cloud, and in some ways, it is very much like the cloud.

On one hand, it does allow for in-office collaboration. Better still, it allows your office to collaborate in an environment that is far easier to secure against potential risks since employees use your system when they’re in the office.

On the other hand, if you want to offer your employees the freedom and flexibility to work in a variety of locations to respond to a variety of problems, an on-premise software application can be limiting, since your team may need to be in the office in order to access it.

Since cloud-based solutions rely on the cloud to function, employees can access them anywhere that they can access the cloud. And that means it’s easy for employees to access vital information wherever they may be, whenever they may need it.

That allows your business to stay agile and respond to problems as they arise, no matter what the situation may be.

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