Cloud Vs On-Premise – The Technology Debate

admin | June 20th, 2018 | Cloud Computing

cloud vs on-premise

The Debate on Cloud Vs On-premise

Cloud may offer myriad benefits, but it has some disadvantages, which may make the enterprises hesitant to migrate there. On the other hand, the on-premise software even though overtaken by cloud technology has its own advantages. In such a situation, enterprises need to thoroughly weigh the pros and cons before deciding on one in the Cloud Vs On-premise technology. Cloud has invaded the net and enterprises are flocking to have their data stored and processed on it. Some still are apprehensive regarding the security it provides and prefers that the data is best safe on-premises. So the obvious question enterprises today face is whether they should consider using a cloud-based Software-as-a-Service (SaaS) solution given its obvious advantages or should they deploy on-premises applications in their own data centers if they are to see from a security perspective?

The Advent of Cloud Technology

The benefits of cloud cannot be negated and this is proved by the fact that around 96% respondents of a survey done in this direction clearly stated that they use some or the other form of cloud computing service in their businesses. The survey also points out to the fact that SaaS will be the largest cloud computing category that will have the enterprises spending nearly two-thirds of their total cloud expenses in 2018. Among the SaaS apps, Enterprise Resource Planning (ERP), Customer Relationship Management (CRM) and content management apps will be the biggest preferred enterprise applications for spending.

Preference for On-Premise Software

While it is true that organizations are willing to spend a lot of money on cloud, but the fact remains that on-premise software may still be preferred in some situations. And enterprises still run only 20 to 30% of their workloads on cloud with the rest being in-house. So whether it is the cloud or on-premise, each has its own distinct set of benefits and disadvantages. It is up to the enterprises to carefully weigh the options before choosing the appropriate one for each individual task. They need to match the transparency and visibility it offers to the speed and scalability it can provide.

Some Aspects Covering the Cloud Vs On-Premise Debate

  • Cost: One of the greatest lure to the cloud is the financial benefit it offers. SaaS service requires that the enterprises pay a monthly or yearly subscription fees instead of a big license fee. This helps them to keep their operational expenditures low and may be more attractive to the stockholders. When enterprises migrate their data to the cloud, it eliminates the need for additional hardware, software, and staff to take care of all the data. Thus, the enterprises will not need much data center space and also staff to handle it. But the problem is that the total cost of ownership over a longer period in the cloud usually surpasses that of the on-premise software. The initial license fee and the purchase costs for an on-premise software may be on the higher side, but it saves over a period of time. Since the SaaS subscriptions are easy to come by, it usually happens that the enterprises spend on unnecessary apps that might not be really useful in the long run. Large enterprises end up with additional staff, effort and money in audits and cost optimization tools for the SaaS apps that they use/not use.
  • Flexibility: Even though SaaS apps attract enterprises due to their low subscription fees, they do not provide all the custom features. That requires that the enterprises cough up additional money for all the added features. And some enterprises may need the help of third-party service providers to do the custom task. So, it boils down to a compromise for most of the enterprises with them having to make do with the cloud software as it is.
  • Deployment: The SaaS app can be started as soon as it is deployed and that is a huge advantage for the enterprises to catch up with the competitive and fast-changing markets. But the flipside of this easy and ready-to-use cloud app is that it leads to the hazard of Shadow IT. The employees sign up for software without the management approval and enterprises need to tread caution by putting appropriate governance and controls in place.

Cloud Vs On-premise; The debate is on! Cloud is no doubt better in terms of cost-effectiveness, process scalability and work flexibility; but security is a challenge, which can be taken care of by the CASB solutions.