Cloud vs On Premises: Which Solution is Best for You?

When streamlining or expanding your business, your first choice may be an on premises software solution deployment in order to have greater control and flexibility. Traditionally, companies licensed enterprise software and then implemented it “on premises” – for their own or controlled physical location – and provisioned the hardware, infrastructure and support to set it up and maintain it for employees. These days traditional software installations are rapidly coming to an end. Instead of paying for a piece of software, installing it on the office computer and configuring it locally, a growing number of businesses are switching to the Software as a Service (SaaS) model. But this gives rise to a question ‘which is best for my business’? Here are some highlights to help you decide.


On premises

Internal hosting refers to the model where the assets and applications used by an organization are managed and hosted by the organization itself. Management is typically provided by the internal IT department, on servers and hardware owned by the enterprise.

You can take advantage of a one-time license fee and—depending on your server capacity and operating system licenses—your existing infrastructure, thus saving you money in the long term. As the owner, you maintain control over infrastructure, costs and scheduling of upgrades. And you don’t need to worry about accessing your data if your Internet goes down.


  • Ownership – You ‘own’ the software.  You only pay once beyond the maintenance. If you stop paying maintenance the software will continue to work at the version you are on.
  • No hosting or management fees – In an internal-hosting model, there are no external fees for hosting or managing the environment.
  • Management Control – Internal hosting allows enterprises to decide everything within the hosted environment, retaining complete control.
  • Change Control – Internal hosting allows organizations to have complete say over all changes, criteria and timetables for any change.
  • Performance – Internally hosted environments often enjoy greater performance than cloud-hosted environments.
  • Privacy – Internal hosting keeps critical data in-house. No third party has access to your information.


  • Management Responsibility – With an on premises system, you are responsible for maintaining server hardware and software, data backups, storage and disaster recovery. This can be an issue for smaller companies who have limited budgets and technical resources.
  • CAPEX/Maintenance Costs – All of the hardware, software, and maintenance costs are yours, and you receive no economies of scale.
  • Power/cooling/hosting costs – All of the supporting power, cooling and space costs related to internally hosted environments are charged to your organization. And again, there are no economies of scale.
  • Resources – Your staff must be well trained and their skills, as well as your IT infrastructure, kept up to date. Resources are partially focused on managing activities that are not relevant for your core business.


Cloud Hosting

The applications are hosted in the cloud, the assets and/or applications utilized by a given enterprise don’t reside within the enterprise, and are typically not directly controlled by the enterprise, at least at the infrastructure level.

In the cloud hosting model, you don’t have to worry about buying and maintaining your own infrastructure. It’s also instantly set up – so you don’t have to hassle a techie to install and configure it all for you. Your subscription includes software updates, technical support, hosting costs, and system administration. What’s more, there are no bandwidth limits – you can use the system as much as you like.


  • Resources – Perfect solution in case Your IT department does not have enough time to support this project and you want to get up and running quickly.
  • Streamlined costs – All of the CAPEX, maintenance, and utility costs are rolled into a single monthly charge, and economies of scale are often realized. Furthermore, up-front and start-up costs are minimized.
  • Improved resource utilization – Your internal staff can focus on strategic initiatives, rather than day-to-day activities.
  • Flexibility & Scalability – Cloud environments provide greater flexibility as you only pay for what you use and can easily scale to meet demand, for example adding and scaling back licences.
  • Third party users – you can easily have third parties such as customers or suppliers on-board and allow them to share your data.
  • Accessibility – An advantage of cloud computing is that data stored on the cloud can be easily accessed from anywhere there is internet connectivity. A self-hosted system, on the other hand, in addition to requiring internet connectivity, also needs a VPN setup.
  • Security – Cloud computing systems are significantly better secured than self-hosting services. This comes down to the fact that cloud computing systems use nix-based systems (Unix or Linux) which are less vulnerable to virus attacks than traditional computer networks.


  • Recurring Costs – Cloud hosting comes with a monthly bill, which never goes away.
  •  Loss of configuration control – Cloud hosting models typically utilize change and management controls that result in slower changes, and possibly disallowed changes.
  •  Performance – Where a good broadband connection is not available, latency can sometimes be a factor in cloud hosting models.
  •  Internet connectivity – Access to data is solely dependent on internet connection; if the Internet goes down on your side or you can’t reach the cloud, you won’t have access to any of your information.


We hope you find this information helpful and welcome your comments below.

At NotifyMe we take care of our customers’ requirements, so we can provide both solutions. If you are interested in more information feel free to contact us via email.

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