Comparing the Features
Here are the main differences between cloud and on-premise hosting: control, scalability, maintenance, costs, security and compliance.
Control
Cloud computing systems are run by a third-party provider – while this is often great for ensuring that your IT infrastructure stays online and is frequently updated, it takes a lot of the control out of your hands. This could be a concern if your organisation handles a lot of sensitive data.
On-premise IT infrastructures, meanwhile, are completely managed in-house. This gives you complete independence, although it can be a problem if you experience a lot of network and connectivity issues.
Scalability
Cloud systems can be scaled up and down very easily; this is perfect for rapidly expanding companies who need to be able to manage tons of information on employees, clients and projects, without hitting a ceiling.
On-premise systems, however, are restricted by office space and capacity. This means that if your organisation is determined to scale up, increasing your internal storage could be a costly challenge.
Maintenance
Cloud systems are easily maintained – often, the third-party providers will manage installation and configuration, as well as the day-to-day updates and fixes. This reduces the time and costs associated with keeping your IT infrastructure up to date.
It isn’t quite as simple with on-premise hosting. Here, the burden of maintenance is all on you. If you rely on break/fix solutions, then any issues with maintenance lead to downtime and reduced productivity.
Costs
Cloud systems, in general, are cheaper. They are often built around subscription models, which give you great visibility over what you’re spending. These often come with extra services that you can add or remove to tailor to your organisation’s needs.
On-premise systems are generally more expensive, as expenses like energy costs or last-minute fixes are all handled by you.
Security
The cloud is often considered to be less secure; many large organisations, from The Electoral Commission to Virgin Media, have experienced cloud breaches that were widely publicised, which can alarm companies considering cloud-based solutions.
The risk, however, can be managed with robust cybersecurity solutions and comprehensive employee training. You can also limit damage in the event of a breach, as data is always backed up.
On-premise systems are generally considered more secure, as storing data on-site means someone would have to infiltrate the building to breach security. That said, in the unlikely event of a breach, the damage could be far more severe.
Compliance
Cloud systems can be tricky when it comes to compliance. As you’re working with a third-party provider, due diligence is key – the onus is entirely on you to research thoroughly and ensure your provider can adhere to the necessary regulations, and if they have the certifications and audit results to prove it.
On the surface, it is much easier to follow compliance and data regulations with on-premise hosting, as your data sits solely with you. However, managing an on-premise system means you’re responsible for everything from configuration to employee training. If something goes wrong, the responsibility falls entirely on your business.
