Cloud vs On-Premise: Which is Better for Your Business?

Cloud vs On-Premise: Which is Better for Your Business?

Cloud vs On-Premise: Which is Better for Your Business?

Cloud vs On-Premise: Which is Better for Your Business?

Cloud vs On-Premise: Which is Better for Your Business?

Technological advancements have enriched the business world with modern tools and technologies which enable organizations to reach their goals. With Cloud Computing taking the technological world, more business operations are being conducted online comparatively.

In this era, it is not essential to keep every program that an organization works on in a physical system. Since many applications are now available through cloud computing. On the contrary, however, many businesses find it hard to get accustomed to the Cloud.

These companies prefer going with the tried-and-true legacy method of operating with on-premise applications. This brings us to one of the biggest debates going around in the world of advanced tech. Cloud vs On-Premise.

In this blog post, we will dive into both these concepts to weigh up their pros and cons. While we do so, you can address the conundrum of which way to tilt your business and which way will be more beneficial for the entire organization.

Let us first understand what both these concepts are and what they offer to a business:


Ever since the Cloud came into the picture, organizations now have other options with which they can use the applications. Instead of buying a program, installing it on the PC/device, and then using it, a subscription is much more convenient.

In a notable difference, the technology differs from on-Premise software as within the company hosts everything in-house in that environment. Here, however, a third-party service provider hosts all the workloads and Applications allowing the companies to pay on an as-needed basis.

This can effectively scale a business up or down depending on overall usage, user requirements, and the growth rate.


In a more traditional approach, most businesses rely on installing their programs on-premise. These programs are deployed in-house and operated from a server.

The one aspect of on-premise environments that organizations need to think about is that it costs significantly more. The costs are more associated with managing and maintaining the infrastructure. The expenditure for them can be exponentially higher than a Cloud Environment.

The obvious reason is that an on-premise setup requires in-house server hardware, software licenses, integration capabilities, and IT employees on hand to support and manage potential issues that can arise.

Cloud vs On-Premise Essential Differences

There are three very obvious and major differences between these two business concepts. Here is a quick run-down:


We have various forms of Cloud Storage options like public, private, and hybrid. Resources of public Cloud solutions are hosted on the Premise of the service provider. Despite this, enterprises can access and use those resources anytime they want and as much as they want.

However, in an on-premise environment, resources are deployed in-house and within the infrastructure of an enterprise. Here, the enterprise is solely responsible for maintaining the resources and all the processes.


Expense is a key difference between cloud and on-premise environments. Most organizations tend to resolve this challenge based on this. Businesses that choose Cloud Computing Solutions need to pay only resources they use with zero maintenance costs.

On the other hand, businesses that choose to deploy their software on-premise, need to pay for the ongoing costs of the server hardware, power consumption, and space. Naturally, the latter option costs significantly more and the difference is quite evident.


Security is one of the main concerns that every business organization thinks about. It remains the number one barrier as far as Cloud Solutions are concerned.

Although all Cloud Storage options including public cloud are known to be secure, organizations feel more secure with on-premise environments. Especially companies that store sensitive information such as banking industries and government industries since they need top-level security.

This is what compels some businesses to choose on-premise software despite its other drawbacks which include the cost. Even though the cloud has shown plenty of promise on the security front, the need to trust service providers with their workloads is the main concern for businesses.


For more than a decade now, technology has dominated the landscape of business. Cloud Services are primarily built and managed to meet today’s challenging business requirements. And leading Cloud Service providers like us, Sapizon Technologies, have risen to meet the opportunity.

We are here to transform the businesses of our clients and enhance their productivity through Cloud Services. Apart from making cutting their costs and making it convenient for them, we also render security of the highest level in the Cloud to our clients.

Book a free consultation with our Cloud Experts for Cloud Transformation.

Let’s work together to make your business journey successful.