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On-Premise Or Cloud Hosted Infrastructure

On-Premise Hosting Or Cloud Hosting – Which Option Is Right for Your Business?

Deciding where to host your business applications is not an easy feat. Whether on On-Premise or Cloud, ‘which is best for my business’? There is no one right answer to this question, and there is no one-size-fits-all approach. Business owners need to decide the best fit for their organization by knowing the difference between each type. So what exactly do those terms mean? And what do they mean for business?

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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-Premise

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.

Cloud Hosting

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.

What Are the Benefits?

Briefly defining both solutions does not tell the whole story. Your organization will have to come to an independent conclusion on what the right solution might be depending on a lot of factors, like the size of your business, the number of locations, the number of teams, capital to spend, and more. Below, we’ll take a look at each solution and their specific benefits:

Your business will gain the following with an On-Premise solution:

  • Enhanced control: Your business gains complete and total control with all the hardware related to your network. However, you may need to retain IT professionals that set up and maintain the network to enhanced control as well as security.
  • Potential cost savings: Your business might require a single, one-time purchase of hardware and services when establishing an on-premise solution, avoiding reoccurring costs from a subscription. With Cloud Hosting, your business is always paying a monthly fee, and the prices will only grow as you add more features.
  • Regulation requirements: On-Premise allows your business to enhanced compliance and ensures the network is adhering to different regulations. In case your business on-premise network goes down, you can act quickly and fix it, or transfer communications to other servers.
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Your business will gain the following with cloud hosting solution:

  • A subscription model: With a cloud hosting, you pay a monthly fee and your provider supplies everything: the software, updates, server, maintenance, etc. This eliminates the need for in-house IT and staff to maintain the service.
  • Get going quick: Establishing a complete communication platform with a hosted solution can happen in a matter of hours since cloud hosting doesn’t necessarily need an IT department to get it all going. A simple login to the online admin portal is all you need to do.
  • Simple to maintain: Cloud hosting does not require expensive hardware, no physical connection, and no tricky server room that needs trained IT professionals. If your business needs to change a feature or add a new one, it can all be handled through the online portal.

Which Hosting Option Is Right For You?

The next step is to determine the solution that’s right for your business now that you are familiar with on-premise and cloud hosting. Every customer is different and has different requirements that will influence the choice of the deployment strategy. So it’s essential to evaluate these systems according to your business needs and goals.

Security

Taking the needed precautions to protect your sensitive data is a crucial part of keeping your business running smoothly. On-premise and cloud offer different hosting models. With on-premises, you host your system on your company’s network while with cloud; you host your system on the third-party’s network. You know where you store your data at all times when your data is on the company’s network, whereas you don’t have that same visibility with cloud since it’s on a third-party’s network.

System Access

Are your workers always on the go, or traveling to different locations? You need to understand the type of system connectivity that will help your team do their work efficiently. Cloud hosting is a mobile-friendly option, allowing users to access the system anywhere, at any time as long as they have an Internet connection. On-premises CRM is more restrictive with its access and can require CRM access to be bound to specific machines or can require multiple logins to the company systems.

Scalability

Do you need a system that scales with your company’s growth? Cloud hosting flexible architecture offers higher potential for expanding the network, allowing businesses to grow their system as their company grows. On-premises rigid architecture translates into more time needed to configure changes, which can result in higher costs.

IT Resources

Is your IT team and budget on a smaller scale? Or do you have a sizable, experienced IT team that can easily handle complex infrastructure? On-premises and Cloud hosting have different infrastructure models. In cloud hosting, it’s the responsibility of the provider to monitor the performance of the system, and making adjustments and fixes as needed. While with on-premises, the company is responsible for performing frequent system checks to ensure that everything is running smoothly.

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The Bottom Line

The right choice between On-Premise Or Cloud Hosted Infrastructure depends on your business needs. Each business has its own unique locations, unique needs, and industry requirements. The best way to make a decision is to be informed on the decision, as well as informed on your business needs. Are you still not sure which solution is right for your organization? Give Precision IT Consulting a call. We’ll help you determine your needs, and get you a customized solution that can fulfill your requirements.

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