What is the Difference Between on-premise and Cloud-Based Software

by KEN

Moving to the cloud is currently on the agenda of many businesses. Some start by taking advantage of cloud services and cloud-based software. Using software on the cloud comes with numerous advantages, including simplified access for all team members, real-time collaboration, better customer service, and much more.

However, some companies are still doubtful about taking advantage of cloud-based options. They’ve been working with on-premise software for a while, and believe that moving to the cloud could be disruptive to their work process.

Let’s look at the key differences between on-premise and cloud-based software to help you make a decision about switching.

1.  Hardware requirements

When you are taking advantage of cloud-based software, you don’t need high hardware requirements. You can work with the program as long as you have an up-to-date browser and a good internet connection.

For on-premise programs, you would need special hardware requirements depending on what type of software you are using.

For employees who work remotely, it may be hard to obtain specific hardware to install the program on their at-home computers.

2.  Maintenance

When the software is installed on office computers, you are responsible for deploying and maintaining it. From installation to software updates, it’s up to the user to keep track of all the developments.

For cloud-based software, the maintenance is done by specific personnel hired by custom software development company. All the related tasks are carried out by host-cloud service providers.

3.  Scalability

Cloud-based software is highly scalable. It’s designed to cater to the needs of a company and can be adjusted to provide new functions.

While the same can be achieved with custom on-premise software, adjustments on the cloud are usually quicker and easier. You can add functions and additional accounts easier than with on-premise software.

4.  Remote access

One of the greatest benefits of cloud-based software is the possibility of remote access. All team members can access the program any time and from anywhere. This simplifies remote operation tremendously.

Cloud-based software can be an excellent solution for employees who work out of the office. It also widens the company’s horizons, allowing it to hire off-shore talents for certain projects.

5.  Costs

Purchasing software, installing, and maintaining it can be expensive. Especially if it requires additional infrastructure.

With cloud-based software, the costs can be lower. A company simply pays a subscription fee. Accordingly, the initial costs are mostly non-existent. However, ongoing fees can add up over time.

6.  Security

Security is a sensitive subject for many companies since cybercrimes are on the rise. When it comes to on-premise software, especially if it’s custom-made, the security is high. For cloud-based software, you have to trust a third party with your data.

However, when it comes to cyberattacks cloud-based software is generally well-protected. It’s often safer than off-the-shelf on-premise apps.

7.  Dependence

When you buy and install on-premise software, you own it. When you use cloud-based apps you are dependent on the provider. If they decide to stop functioning, you lose your access to an important resource.

When it comes to choosing between on-premise and cloud-based software, you have to weigh all the above pros and cons for your company.

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