Updated March 24, 2023
Difference Between On-Premise and Private Cloud
The infrastructure or hardware stored in the local system to use is called On-Premise. The software is not stored in the cloud. It is abbreviated as on-prem. On-Premise vs Private Cloud in this, 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 cloud services offered through the internet or through a private network is called Private cloud. Companies that do not have the infrastructure to store the software can use the cloud and hence the setup cost is reduced. It uses resources from the public cloud. This is mostly dedicated to a single organization.
Head to Head Comparison Between On-Premise and Private Cloud(Infographics)
Below are the Top 18 comparison between On-Premise vs Private Cloud:
Key Differences Between On-Premise and Private Cloud
Some of the major key differences are mentioned below:
- The deployment of On-premise software happens in the local environment whereas the deployment of private cloud happens on the internet.
- In On-premises software, the company is responsible for maintaining the software while the third party provider is responsible for maintaining the private cloud in systems.
- The enterprise has to bear all the setup and maintaining costs in On-premises software. The cost paid for the private cloud includes the setup and maintenance cost in Cloud.
- The enterprise has full control of the software in On-premise. In the private cloud, the enterprise does not have the entire control of the software.
- The security is more in On-premise when compared with the private cloud. All the information is stored in the cloud environment and there are chances of the 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 a private cloud environment, the data and values reside with the third party and it is not accessible during downtime.
- It is important for enterprises to be compliant with regulations. Since the companies, using On-premise software knows the location of software; it does not create any problem. However, the companies storing data in the cloud must be vigilant and ensure the service 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 the cloud has operational expenses.
- Cloud services are used in small and mid-sized companies whereas On-premise software is used in large companies. Hence, the cost can be borne by the company.
- There are hardware investments in On-premise but there are no hardware investments in Cloud. Third-party providers take care of the same.
- 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. Client customization may not be acceptable by the service provider.
- 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.
Comparison Table
Let’s discuss the top comparison between On-Premise vs Private Cloud:
| On-Premise | Private Cloud |
| The user control over On-premise is more. | The user control over the private cloud is less as third party providers control them. |
| Time, money, and resources have to be allocated to check the working of On-premise software. | A private 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. | Private 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 necessary. |
| The enterprise make 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. Hence, developers will not know much about the software. |
| All the services are run within the enterprise. | Services are not within the enterprise and depend on third-party providers. |
| Upgrading software is a difficult task. Hence, flexibility is less. | Upgrading the software is easy and taken care of by the service provider. Private Cloud has 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. | Private 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 private cloud as unwanted charges may be billed during the tenure of the software. |
| 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 private 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. |
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. Private clouds offer security but the price will be more.
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