Benefits of Cloud vs On Premise

28 August, 2017 |

More and more businesses are turning to cloud computing for their IT needs. The question is why they are opting for cloud services instead of the traditional on-premise solution. Below are the benefits of using cloud over on-premise solutions.

Flexibility and Scalability

The majority of businesses that utilize the traditional on-premise solutions find it challenging and time-consuming to adopt new software or hardware projects in both implementation as well as user adoption. Additionally, increasing and decreasing the IT solution to cater for the number of users was tasking as well. For cloud solutions, setting up new software and hardware is a relatively easy and simple process. Increasing and decreasing the scale of the cloud solution to cater sudden changes in the number of users requiring them is also a straightforward and rapid process to implement. This gives business the flexibility to seamlessly adapt their cloud solution to meet their current needs.

CapEx and OpEx

On-Premise IT solutions are linked to capital expense or CapEx while cloud services usually run on operational expenses or OpEx. CapEx involves making a purchase for an asset whereas OpEx entails incurring an ongoing regular cost usually linked to a contract. Operational expenses are highly transparent due to the ease of determining the return on investment which makes managing IT expenses for the firm more convenient.

Backup, Recovery, and Security

The cloud service provider is usually responsible for the backup, updates, and recovery of software, hardware, and data. On-premise solutions involve onsite storage of data which is a risk since it is susceptible to physical and digital attacks or damage. The cloud service provider is also vulnerable to the same risks however they have put specific measures to ensure that data is highly secure. A good cloud service provider also has multiple backups of hardware, software and client data. This means that if something was to happen to one of their storages or the customer’s data, then it is possible to recover the lost or damaged elements.

Infrastructure as a Service

Businesses with their on-premise solutions typically install their own IT infrastructure around their premises. Management of onsite infrastructure is time-consuming for the IT department which must dedicate a portion of their resources. Furthermore, planning for the future is difficult. For example, assuming a firm has 300 employees, does that mean that the server capacity should cater for 300 users or should it be more or less in case 6 months from now the company decides to restructure or take on a new project? Firms with cloud-based solutions may utilize Infrastructure as a Service (IaaS) while allows them to lease various IT resources such as storage space and processing capacity.

IaaS also frees up time for the IT department which can focus on meeting the business objectives of the firm. IaaS is scalable meaning which enables the company to increase or decrease the leased infrastructure resources to meet its current and future needs in an easy, quick, and convenient method.