Comparison between Cloud and On-Premises Computing: Differences, Benefits & Limitations


Comparison between Cloud and On-Premises Computing: Differences, Benefits & Limitations

Much of the credit to the growing demand for Cloud computing can be given to rising enterprise IT. As a result, many vendors are shifting focus from on-premises solutions to cloud-based solutions. However, the question remains, which is best for my business? There are umpteen factors that you should consider deciding which infrastructure is the best fit for your business.

On-Premises vs Cloud

Cloud computing is often preferred by enterprises because of the flexibility it offers to their employees. All this comes with IT managed services. It means the cloud software has lower investment on implementation, server, and IT support. In short, it offers more scalability and agility at a low cost and faster implementation time. On the other hand, you need to hire specialists to manage on-premises hardware and software because the software is installed locally in your computer and servers.

On-Premises Software

Comparison between Cloud and On-Premises Computing: Differences, Benefits & Limitations

Comparison between Cloud and On-Premise

In the on-premises software solution, your in-house team will put in place the services. Also, the in-house team will take care of maintenance, updates, and security of the software. Such software should be bought and installed on your in-house servers. Your business will have complete ownership of the software with no third-party involvement. Some businesses may choose this model due to compliance regulations. Yet, on-premises solutions are often less flexible and more expensive to put in place and maintain.

Cloud Computing

comparison between cloud and on-premise

On-Premise vs Cloud Pros and Cons

The implementation, maintenance, and security of the cloud-software rest with its vendor. A SaaS vendor charges a fee for maintaining the software, server, and network. You won’t need an in-house IT team as you won’t be actively involved in managing the software. The infrastructure cost will be low. While cloud-based software is getting momentum, certain organizations continue to prefer on-premises software. Both models have unique offerings. It is better to understand and check important aspects before investing in either model. Let’s get into details.

Main Differences of On-Premises vs Cloud Computing




In on-premises software, the deployment needs effort from the employees in the organization. Everything from the environment, infrastructure, and resources must be provided by the enterprise to deploy and maintain the software.


Cloud Solutions are deployed & hosted on cloud servers directly by the software vendor. Enterprise can directly access the software through a secured link online.



On-premises software can offer security to sensitive business data provided strict in-house security measures are taken.


Cloud-based software vendors ensure data security through security protocols like network defense, SSL, and data encryption.



With on-premises software, users can access the software only from the systems on which it is installed – generally from office premises. In case of any urgency, the employees will have to travel to the office for access. Also, if there are multiple locations it will have to be implemented across those locations which will increase the investment cost in software.


Users can access cloud software from anywhere through a valid URL, user id, and password. It is an ideal solution for businesses with many locations/warehouses.



The cost of implementing on-premises software is more because it also involves the cost of software infrastructure and maintenance. It will also incur an ongoing operational cost including competent IT staff.


Cloud software has a cheaper upfront cost. The subscription charges are predictable. Also, there are no heavy server & infrastructure costs.



Once the on-premises software has been implemented the support and security of the solution must be managed by the enterprise’s in-house IT team.


Since the cloud software is hosted on remote servers it is maintained by the software vendor. The vendor will also take care of the security aspects of the software.

Disaster Recovery 


For on-premises software, the enterprise must manage both the hardware and software. The in-house team should ensure data backup in case of disaster recovery. It can take a long time if the resources are limited. In certain cases, data may be completely lost.


Cloud-based software offers automatic data backup making the data available in case of a hardware crash. Moreover, the software vendor will have expert resources to manage disaster recovery ensuring seamless business.


Ensure that you have carefully evaluated cloud and on-premises computing: differences, benefits & limitations before deciding on a suitable software model for your business.

PC: Unsplash

Turqosoft is an Indian Human Resource Management Software Company based in Kerala. To learn more about tealHRMS Kerala, leave a comment or connect with us through email or call us on +91 9841205845. Also, you can follow us on LinkedIn, Facebook, Twitter, or Instagram for interesting updates.

Comments (4)

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  2. AntonioBrort

    To narrow it down, you should focus on the differences between two core elements to your solution: storage and software. As such, there are several cloud and on-premises offerings for storage and software applications. Choosing to store your data on external servers or in-house servers is a major decision that companies must consider.

    December 28, 2021 at 5:07 PM
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