Differences between Cloud & On-Premise Systems

Differences between Cloud & On-Premise Systems

Differences between Cloud & On-Premise Systems

The world is continuously changing with new technology. Many companies are taking carefully into a new world that is constantly adapting to new circumstances. It has been common to use on-premise systems to manage business operations. Nevertheless, new technologies like the Cloud have emerged to transform how companies operate.

Deciding on the technology that’s best suited to manage your business, products, and data can be rather tricky. However, one good place to start would be a comparison between on-premise and Cloud systems. This may give you a clearer idea of what works better for your business based on your requirements and needs.

What is an on-premise system?

An On-premisesystem is software that’s located on-site. It means that your servers and computer hardware are hosted in your organization’s infrastructure and are physically “on-premise”.

The control, administration, and maintenance of the servers are the responsibility of your in-house IT staff. In some cases, however, a company might designate an IT partner to do the job. Data and other information are shared among computers within your local network, and the systems are fully under your staff control.

 What is a Cloud System?

On-cloud -based information systems are hosted off-site by a Cloud system provider. This means that a service provider hosts your data within their hardware and infrastructure. The Cloud provider secures and installs all the necessary hardware, software, and other supporting infrastructure in their data centers.

You can normally access the provided Cloud systems and services to manage your account remotely via the Internet using a web browser. Cloud business systems are typically scalable and dynamic and designed to accommodate the needs of a wide range of companies in a certain industry or several industries.

We will compare key aspects of On-premise vs. Cloud SaaS systems to illustrate how they function and differ from one another. The comparison should provide you with important insights on which type of system would be right for your business.


Using On-premisesystem provides you with more control over your systems since they are installed on your own hardware. This allows you to configure it as per your own specific business needs. While on-cloud providers may allow you to configure your own hardware and system settings, it is typically limited especially in SaaS deployments as the environment is normally shared with other businesses.


With On-premise, your security is totally your responsibility. This means you need to monitor and conduct security audits and procedures constantly. An On-premisesystem requires physical, network, and data security measures. However, on-cloud  providers deploy state-of-the-art encryption and security methods to provide a safeguarded storage for all data and documents. The Cloud security is highly automated and controlled. This reduces risk as well as the work performed by your IT staff.


Using an On-premisesystem is comparatively expensive. It involves procuring servers and other computer hardware, operating systems, and other tools. In addition, you need to pay for maintaining and updating the systems and hardware. This means that On-premisesystem deployments require a sizable upfront investment to purchase hardware, construct infrastructure, and procure needed software and tools. This is besides the additional operational for things like maintenance costs.

Cloud information systems are predictably more cost-effective in general. You only have to pay for the services you use and forget about other associated expenses such as maintenance and upgrades. Additionally, SaaSsystems are subscription-based, so you don’t have to worry about large upfront investments.


In short, there are several fundamental differences between On-premiseand on-cloud  systems. On-premise deployments are high in cost and involved in maintenance but give you more control of your system and data. On the other hand, you can access on-cloud systems from anywhere at any time. They are cost-effective and can be up and running in days and sometimes even hours. However, you have less control over your system environment, and they are totally dependent on having a reliable Internet connection.

Which one is the best one for your business depends entirely on your needs and what you are looking for in the system.

Check out what ProTech has to offer whether On-premiseor in the on-cloud .

Call Sales