Adopting cloud infrastructure requires companies to assess numerous factors to ensure it aligns with their specific requirements and objectives. Some companies may find that, for whatever reason, they aren’t ready for the cloud just yet. Instead, they may choose legacy systems and on-premise infrastructure to manage operations. In this article, we explore the main differences between cloud computing and on-premise environments.
Cloud vs On-Premise: What’s the Difference?
The main difference between cloud and on-premise is location. On-premise software operates on a business’s own hardware infrastructure and is hosted in-house, allowing for direct control. On the other hand, cloud software is hosted on the servers of the service provider, such as AWS, Microsoft Azure and Google Cloud.
Cloud computing continues its rise to prominence, which is hardly surprising given the myriad of benefits it offers businesses. It offers time and cost savings and more flexibility, scalability and agility. In contrast, on-premises software has long been the only option for some businesses. If it continues to meet the organisation’s needs, they won’t see the need to change.
However, the general consensus among IT professionals is that it's not enough to rely on on-premises and legacy systems anymore. While it offers some benefits in terms of security and the degree of control it affords, on-premise solutions may act as barriers to growth in some circumstances.
Let’s delve deeper into the advantages and drawbacks of cloud vs on-premise infrastructure.
On-Premise
In 2020, enterprise spending on cloud computing overtook on-premise environments for the first time. But don’t assume this means on-premise environments are on the way out because many businesses still rely on them. On-premise data centres offer the following advantages and drawbacks:
Advantages
Control
On-premise solutions give organisations full control over their IT environments. This means they control data storage, security protocols and system configurations. It’s no surprise that this level of control is particularly appealing to businesses that must adhere to strict regulatory compliance requirements, such as financial services, healthcare, education and utilities businesses.
Customisation
Organisations can make changes to their on-premise architecture to fit their unique needs. IT teams can choose hardware and networking components and software solutions that align with their operational requirements.
Predictable performance
On-premise technology gives businesses direct control over hardware and network settings, leading to predictable performance.
Cost
An advantage which is often overlooked is the absence of recurring costs. While set-up costs for on-premise infrastructure are admittedly high, organisations do not need to allocate a portion of their IT budgets to paying a cloud subscription.
Disadvantages
High initial investment
On-premise infrastructure requires a high initial investment cost, which smaller businesses may be unable to afford.
Maintenance
On-premise infrastructure requires regular maintenance. Organisations must allocate sufficient resources to manage the environment, including regular updates, security measures and troubleshooting, requiring an in-house expert team.
Scalability
On-premise environments don’t offer easy scalability, as expanding physical infrastructure is not only costly but also time-consuming. Furthermore, it’s difficult to accurately estimate the required amount of resources to provision, resulting in overprovisioning or underprovisioning issues.
Cloud Computing
By 2025, it’s thought that 80% of companies will be cloud-first, meaning cloud computing technologies will be the primary means of delivering IT services. Cloud computing offers the following advantages and drawbacks for organisations:
Advantages
Scalability
Cloud computing is scalable, allowing businesses in all sectors to scale resources up and down to meet demand. This scalability can not only save organisations money but allows them to meet consumer demand quickly.
Cost-efficiency
Unlike on-premise solutions, which require a large upfront cost, cloud models from providers operate on a pay-as-you-go basis, cheaper than the upfront cost with even lower maintenance costs applied. This reduces financial barriers and burdens on IT teams, especially for smaller businesses with small IT teams and limited access to capital.
Remote accessibility
Cloud services can be accessed remotely, allowing IT teams to manage infrastructure wherever they are in the world. In the age of hybrid working, remote accessibility has never been more crucial, and it offers a degree of responsiveness that ensures businesses can remain competitive.
Disadvantages
Security
One of the biggest drawbacks of cloud computing is security, especially for firms that handle sensitive data. While cloud providers have implemented stringent security measures, the idea of storing highly sensitive data offsite may still understandably be of concern to businesses. Additionally, having a digital infrastructure as opposed to a physical one means a larger attack surface area. Consequently, allocating more resources to intrusion surveillance and detection is essential for cloud providers.
Limited customisation
Cloud services offer limited customisation options. While they provide a wide range of services and configurations, such as various storage capacities and computing and network options, there is limited scope for granular customisation.
Final Thoughts: Cloud vs On-Premise Solutions
Both cloud computing and on-premise solutions have their pros and cons. What suits one business may not necessarily align well with another. If you need help creating a more efficient, agile and responsive development and deployment process for cloud or on-premise infrastructure, contact the Evolvere Technologies team today. Our DevOps expertise is tailored to your organisation’s specific needs, regardless of your current maturity level.