Updated March 20, 2023
Difference Between On-Premise vs Cloud
The following article provides an outline of On-Premise vs Cloud. Since the companies store and use the cloud software, they do not store the infrastructure or hardware in the local system. If the infrastructure is stored locally, then it is called On-Premises software. It is abbreviated as on-prem. The software used in on-premises is called shrinkwrap software. The software not stored locally is called Software as a Service, and it is Cloud Computing. The software is available on the internet. The clouds may be either private or public. Companies that do not have the infrastructure to store the software can use the cloud, and hence the setup cost is reduced.
Head to Head Comparison Between On Premise vs Cloud (Infographics)
Below are the top 18 differences between On-Premise vs Cloud:
Key Difference Between On-Premise vs Cloud
Let us discuss some of the major key differences between On-Premise vs Cloud:
- The deployment of On-premise software happens in the local environment, whereas cloud software deployment happens on the internet.
- On-premises software, the company is responsible for maintaining the software while the service provider is responsible for maintaining the software in Cloud systems.
- The enterprise has to bear all the setup and maintaining costs in On-premises software. The cost paid for the service includes the setup and maintenance cost in Cloud. The cost is adjustable based on the usage, and enterprise need not worry about the same.
- The enterprise has full control of the software on On-premise. In the cloud, the enterprise does not have the entire control of the software.
- The security is more in On-premise when compared with cloud software. All the information is stored in the cloud, and there are chances of a security breach.
- Data always resides in the local environment and is not taken care of by any third party. Therefore, during downtime, data is fully accessible in On-premise. While in the cloud, the data and values reside with the third party, and it is not accessible during downtime.
- Enterprises need to be compliant with regulations. Since the companies using On-premise software know where the data is, it is not an issue. However, the companies storing data in the cloud must be vigilant and ensure the cloud providers are within the compliant check.
- Cloud service has a monthly or annual subscription, whereas On-premise comes as a one-time installation fee that may be higher. This is a one-time investment while cloud is operational expenses.
- Cloud services are used in small and mid-sized companies, whereas On-premise software is used in large companies.
- There are hardware investments in On-premise, but there are no hardware investments in Cloud.
- Customization can be done largely and up to the standard of the enterprises in On-premise software. However, customization is not possible in Cloud service and is dependent on service providers.
- On-premise software takes more time to implement the changes, while Cloud services take less time to implement the changes. The enterprise takes care of the implementation and is very dependent on them.
- Mobile applications can provide less security in cloud services. If the third party is involved in On-premise software in mobile apps, security is a problem of concern.
Comparison Table of Premise vs Cloud
Let’s discuss the top comparison between On-Premise vs Cloud:
| On Premise | Cloud |
|
The user control over On-premise is more. |
The user control over the software is less as third party providers control them. |
| Time, money and resources have to be allocated to check the working of On-premise software. | Cloud is more like a service where we pay, and someone else takes care of the software. |
| On-premise infrastructure is not easy to scale, as it is mostly a bigger enterprise. | Cloud infrastructure is easy to scale. |
| Internet connectivity is not needed all the time. The software is not stored online. | Since the software and services are stored online, internet connectivity is a must. |
| The enterprise makes the entire setup of On-premise from the start, and the developers will know the software very well. | The service and software can be fully purchased or made available when needed in Cloud service. |
| All the services run within the enterprise. | Services are not within the enterprise and depend on a third-party provider. |
| Upgrading software is a difficult task. Hence, flexibility is less. | Upgrading the software is easy and taken care of by the service provider. Cloud services have high flexibility. |
| The infrastructure is not available on a subscription basis. | The software is available for purchase on a subscription basis. |
| Migration is not needed in On-premise as the software is taken care of in the local enterprise. | Cloud migration is a difficult task and is always dependent on a third party or cloud tools. |
| Enterprise is responsible for hardware and software updates. | Third-party providers take care of the hardware and software updates. |
| Cost is fixed, and the enterprise is aware of the incurring costs. | Cost optimization is a problem in the cloud as unwanted charges may be billed during the software tenure. |
| Data need not be moved anywhere as it is available in the enterprise locally. | Whenever the data has to be moved to the system, it will be charged, and the process takes time. |
| The developer provides the software applications. | The Internet is used to provide software applications. |
| The repository is either stored in any central location or distributed within systems. | The repository is managed from a central location. |
| Integrations and interoperability are easily managed in On-premise. | Integrations are not easily managed in the cloud as different software has different locations, and it takes time for the same. |
| Vendors do not create any issue in the software creation or update. Developers do the process. | Since vendors provide the service, they may make it easy for them to enter the software, and hence vendors may still control some operations. |
| Data is easily portable from any other application. | Data is not easily portable from one service to another. |
| The enterprise has some standards, and it is followed in the On-premise software. | Vendors have different standards that may be difficult to follow for the users. |
Conclusion
Based on the usage of cloud service by the developer, we can select the service. If the enterprise value security more than anything does, it is better to follow On-premise software. Nowadays, On-premise and cloud services are combined, and hybrid applications are developed. It is easy to use, and the cost is less.
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This is a guide to On Premise vs Cloud. Here we discuss the Introduction, key differences, and comparison table with infographics. You may also have a look at the following articles to learn more –
