If you’re currently looking for systems to make your company’s processes more efficient, you surely have encountered the words cloud-based and on-premise. This article discusses the pros and cons of the two to help you decide which is better for your business’ needs. Get started by taking the short quiz below.
Take the Quiz: Cloud vs On-Premise
Cloud-based and on-premise systems have their strengths and points for improvement, making them suitable for different sets of needs. The key difference between the two is that cloud-based systems are hosted in the cloud, maintained by a software provider. On the other hand, on-premise systems are hosted in company-owned servers within the office premises, hence the term.
This quiz will gauge which of the two better matches your company’s requirements. Before taking the test, make sure to put yourself in the shoes of the end-users, who will be using the system.
If Your Answers are Mostly A: You got Cloud-Based!
Your business will do well with cloud-based software that you can access anytime and anywhere with a stable internet connection. It’s perfect for work-from-home arrangements and remote teams. Check out these 5 FREE Cloud-Based Apps to get started.
If you don’t have it yet, there’s no need for your company to maintain servers, employ an IT Team, and worry about data security—your provider will handle it for you. Since the system is hosted in their servers, they can also easily roll out updates for new features and improvements.
Most cloud-based systems charge regular recurring payments, so you can space out your expenses over a long period. Trust us—your Finance Team will love this.
If Your Answers are Mostly B: You got On-Premise!
With a robust server infrastructure, an expert IT Team, and a sizeable budget, you can host your on-premise system with ease. With this setup, data security is in your company’s hands. Your employees will not be able to access the system outside the office premises as well.
On-premise systems do not need internet access, which makes it best for areas with limited connectivity. Most providers also let clients customize the system to fit their exact needs, so make sure to discuss it with yours.
Summary
The table below summarizes the differences between cloud-based and on-premise systems.
| Cloud-Based | On-Premise | |
| Number of Users | Usually charges per user | Usually charges per device installation |
| Usage Location | Anywhere | Within office premises only |
| Connectivity | With stable internet connection | No internet connection required |
| System Updates | Regular updates, usually at little to no cost | Occasional updates, usually with a corresponding fee |
| Server Infrastructure | Not required | Required |
| Data Security | Handled by provider | Handled by company |
| Pricing Scheme | Recurring fee | One-time payment |
Overall, cloud works best for on-the-go users with reliable access to an internet connection. It is suited to Small-to-Medium Enterprises (SMEs) with limited know-how for server maintenance and whose focus is on building a lean manpower team.
Meanwhile, corporations who prefer to be hands-on with data security and server maintenance should go with on-premise systems. Companies that already have working processes in place will also do well with on-premise systems that offer in-depth system customization.
Now that you’ve identified the distinction between the two, it’s easier to know which works best for your needs. Are you going with a cloud-based or an on-premise solution?
