On-Premises vs Cloud computing

Today, businesses have a lot of choices when it comes to data storage. We live in IT age, so it is not surprising that the question of on-premises vs cloud Computing often comes up. Undoubtedly, it is one of the biggest trends in the IT industry right now. Which one is better for my company? What is the advantages and disadvantages of using on-premises or cloud computing?


On-Premises software

The on-premises solution, sometimes shortened to “on-perm” solution. It requires only a license or purchased copy of the software to operate. However, as you can see in the picture it has many ongoing costs. And it actually requires way more maintenance costs than you might think.

Besides all costs, On-premise system is considered one of the safest systems. The solution is deployed in the traditional manner. Servers are acquired, operating systems are installed, other hardware may be involved, but all the information lies within your company walls.


Cloud computing


One of the big benefits to cloud service providers is the resource pooling. At first glance, it may seem that cloud services are much more expensive than On-premises. It is not true, we are likely to see only subscription and software licences fees. How about ongoing costs? Let’s look at the picture again.

cloud computing

Advantages of using cloud services:

  • Save your company a lot of upfront and ongoing IT expenses;
  • Reduce hardware, software and internal IT needs;
  • Speed of setup and implementation
  • Low cost of entry


Which is the best?

There is no right answer to this question, it "depends". We have to evaluate both Softwares and see which one fits our needs.

However, according to the Cisco the public cloud, as indicated by the workloads growth, is growing faster than the private cloud. They predicted the rise substantially by 2019 in  “ Cisco Global Cloud Index: Forecast and Methodology, 2015 - 2020”.  One of the reasons is virtualization growth, it also affects the growth in cloud service. If you do not have and cannot afford the expertise on staff to maintain something, cloud-based offerings should be very appealing!

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