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Companies that use IT infrastructure, including a mix of hardware and software, often have to decide whether to host it on-site or off-site (in the “cloud”). In today’s fast-changing world, there are several key factors that companies have to consider when making such a decision.
On-premise simply means that the IT infrastructure is hosted on site. Essentially, on-premise software solutions are hosted in-house. This also means that subsequent maintenance, repairs, safety, and further updates are all handled on-site.
After buying software, the company often installs it on its servers, connecting relevant database software and configuring operating systems accordingly. Since there is no involvement of any third-party, the company has full ownership and responsibility.
Many legacy data center solutions are on-premise solutions. Also known as “on-prem,” the reason why companies prefer hosting software on-site is because they maintain full physical control, and don’t have to worry about paying a monthly fee.
In the past, on,-premise software was the only solution available to companies. Today, that’s changing, as more and more off-site solutions become popular, and cloud computing becomes the standard.
There is now agreement amongst IT professionals that companies can’t solely rely on on-premise applications. In any case, a mixture of off-premise and on-premise solutions, also known as a hybrid IT environment, will be the way forward.
| Features | Pros | Cons |
| Cost | Overall costs in the long-term are lower | Substantial upfront investment required |
| Security | Companies can deploy their own security protocols | Technical IT support is required, increasing costs |
| Control | Full control to the user | Trained IT staff is required to provide support |
| User access | Internet connectivity is often not required for in-house solutions | This also means access isn’t available on-the-go |
| Future-proofing | Additional software can be purchased at extra costs | No updates are provided, and new features are costly to add |
Conversely, cloud computing means that the software is hosted off-site, in the cloud. Cloud computing allows companies to deliver system resources on demand, often with the help of applications that have minimal processing power.
A cloud-based SaaS (software-as-a-service) solution is not only efficient, but it also helps companies save a great deal of money and resources. For starters, the company doesn’t have to invest in additional infrastructure.
The cloud provider stores all the information on secure servers, and all relevant information is available through a web portal. This also means that information is available from anywhere in the world, through mobile apps or any connected device.
A hybrid solution refers to software solutions that use both on-premise and cloud computing. The software on-premise is used to create an intranet setup, or a private cloud that’s hosted on the company’s own servers. On the other hand, other applications that are required for quick access are often hosted on the cloud.