On Cloud vs On Premise: Understanding the Difference
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As enterprises ride the wave of digitalization, IT infrastructure becomes a primary focus point. After all, IT infrastructure is what digitalization of businesses is supported by. Enterprises today rely on enterprise software for digitalization of the many business processes. This is where it gets interesting because there are two different categories of software applications, based on the hosting address – Cloud and On-Premise, classified on the basis of the infrastructure. So, what’s the difference between the two?
On-Premise Application: It’s a term used to refer to the applications that are installed on the company’s own servers.
Cloud Application: It’s a term used to refer to applications that are hosted on the server that belongs to a third-party provider.
Now that we are through with the definition of both of these terms, let us have a look at the key differences between Cloud and On-Premise, on the basis of some common parameters.
1] Deployment
- Software Application deployed in-house
- No involvement of a third-party provider
- Responsibility of maintenance and upkeep lies solely with the enterprise
>> On Cloud
- Software application is hosted on the servers of a third-party provider
- Maintenance is a responsibility of the hosting provider
- Easy and uninterrupted access to the data and resources by the enterprise
2] Cost
- Ongoing costs of maintenance, server hardware, space and energy consumption to be covered by the enterprise
- Enterprises get the freedom to pay only for the resources they access
- No maintenance cost to be paid for by the enterprise
3] Control
- Sole control and ownership over data rests with the enterprise
- Perceived as more secure
- Ownership of Data does not rest solely on any of the stakeholders
- Encryption keys are with the third party provider
- No access to data during downtime
4] Security
- Tends to offer greater levels of security
- Offers data privacy as no third party involved
- Data security is a primary concern
- Involvement of third party might affect data privacy
5] Compliance
- Facilitates compliance with regulatory control acts like HIPAA or GDPR, as the enterprise has the sole ownership of the data.
- Additional compliance checks required on the third-party provider to ensure compliance to all regulatory mandates.
So, that was some basic information about On-premise and Cloud applications. Can we have the best of both worlds?
Well, the good news is that you can and all you need is a Hybrid Cloud Solution!
As the name suggests, a Hybrid Cloud Solution is nothing but a model that features elements from both the IT deployment models that we have studied so far – Cloud and On-Premise. The Hybrid model goes a step further to bring in the concept of Private Cloud – a Cloud that is hosted on-premise or through a third-party Private Cloud provider. This Private Cloud is connected to a public Cloud platform through WAN connectivity.
Want to explore how a Cloud software application can benefit your HR department? Discover Digital HRMS – an HR software that is available On-Premise as well as on the Cloud.
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