On-Premises and Cloud Hosting Defined
The first step is to understand the main differences between the two hosting models before we can begin to analyze, which one is right for your business. Below we explore the basic principles of each option.
On-premises solutions are physically located in a hosting location of their choice or at the organization site. The application in use and all the data associated with it is stored on a server or a private cloud in this location. The on-premise solution allows you to purchase the software and license, install it on your own server, and maintain it yourself. Software licenses are usually a one-time, and upfront purchase, but additional costs may be incurred if other modules are needed.
On the other hand, cloud hosting involves storing data on remote servers or hardware that is maintained by a third-party service provider. With a cloud hosting, you pay a monthly fee, and the provider supplies everything from storage space, bandwidth to data access. You can buy a specific amount of storage space based on your organization’s needs by using the cloud.