On-Premise versus Cloud-based Software

In the IT community, the choice between adopting cloud-based solutions versus installing on-premise data management software is always a debatable topic. Although many companies are already taking advantage of storing data on the cloud, some businesses still prefer traditional on-premise communication equipment. Both platforms offer its own advantages over the other; therefore, choosing between the two options would really depend on your business needs.

For many business owners, deciding to go for cloud-based or on-premise software can be a very difficult decision to make. Here’s a short list of advantages for both options that can help you determine which solution is more cost-effective.

On Premise:

1. Less third-party dependency
2. More robust customization options
3. Seamless integration capability
4. Controlled physical location
5. Full security and data control

Cloud Based:

1. Reduced hardware, software and internal IT expenses
2. No upfront capital cost
3. Fast set-up and implementation
4. Flexibility to work anywhere
5. Scalability

Whether you prefer to go with cloud-based or on-premise platforms, taking a closer look at your business requirement is still part of the selection process. The fundamental advantages of each software solution can definitely lead to higher client satisfaction level and better telephone systems if integrated seamlessly to your existing communication environment.

There are many differences between on-premises solutions and cloud solutions. Some of the most obvious characteristics include the most biggest difference – how they are accessed. On-premises solutions are just that, on-premises, installed on a user’s or users’ computers. Cloud solutions, on the other hand, are accessed via the internet, and typically hosted by a third-party vendor. The second big difference is the "pay as you go" or on-demand usage service model (cloud) versus the traditional upfront capital expenditure (on-premises). For accounting purposes, counting this on-demand usage as a "utility" versus a large capital expenditure can be very beneficial. Sometimes this is one of the more enticing aspects of using cloud services—the low cost/low entry point. Sherpa Software’s President, Kevin Ogrodnik, explored the total cost of ownership of cloud services versus on-premises solutions and arrived at different results than regularly anticipated. The most talked about and hyped concern is security. It is currently one of the most limiting factors in cloud adoption. In theory, you could be sharing space and services with your biggest competitors.

Nancy Wilson is a professional writer and lover of all things tech, internet and telcom. Nancy Wilson is basically from Porter Ranch, California. She wrotes and published few articles on famous sites like Moz, Sej, ShoutME, etc.