In businesses that rely heavily on IT at a large scale, there are many factors to consider when deciding whether cloud infrastructure is the right choice. On the other hand, many companies are unable to transition properly to the cloud and continue to depend on existing infrastructure and on-premise applications to run their operations.
Cloud computing has gained significant popularity in recent years. According to a Gartner survey in 2020, 72% of companies worldwide had already adopted cloud solutions for their businesses. Cloud computing provides organizations with freedom in hardware usage, greater agility, and continuously updated functionality. However, the debate between cloud versus on-premise infrastructure will likely continue, as each option has its own advantages and disadvantages.
On-Premise vs Cloud
It is no longer surprising that cloud computing is growing rapidly due to the flexibility it offers to users and organizations—from cost and time efficiency to improved availability and scalability.
On the other hand, on-premise software, which is installed on company-owned servers and protected by internal firewalls, had long been the only option for enterprises. Despite this, on-premise applications offer high reliability, strong security, and a level of control that cloud solutions may not always provide.
That said, many IT leaders now agree that to improve the performance of existing on-premise systems, organizations must also leverage cloud services and Software-as-a-Service (SaaS) solutions to achieve their business objectives.
On-Premise IT Infrastructure
When deciding whether to deploy applications in the cloud or on-premise, data security is always a top priority. Software licenses and data are generally perceived to be more secure in on-premise environments compared to cloud computing.
However, one major drawback of on-premise environments is the high cost of setup and maintenance. In contrast, cloud computing offers relatively lower costs. On-premise deployments require in-house server hardware, software licenses, integration capabilities, and IT staff to manage and resolve potential issues. These costs do not yet include expenses related to hardware failures and ongoing maintenance.
Cloud-Based IT Infrastructure
Cloud computing differs significantly from on-premise software. In on-premise environments, all systems are hosted in-house. In the cloud, the cloud provider delivers and manages the entire infrastructure. This allows organizations to pay only for the resources they actually use.
Cloud-based servers rely on virtualization technology to store applications and company data. There are no additional infrastructure costs, data can be backed up regularly, and companies are billed based on usage. For globally operating organizations, cloud computing is an ideal solution, enabling seamless connectivity with customers and partners worldwide.
Any software integrated into the cloud environment becomes immediately available once the company subscribes to cloud services. As a result, there is no time wasted on installation and configuration, allowing users to access applications right away.
Key Differences Between On-Premise and Cloud Computing
As explained earlier, there are fundamental differences between on-premise and cloud solutions. The right choice depends entirely on your organization’s needs and business objectives.
Deployment
On-Premise:
Resources are deployed in-house and remain within the organization’s IT infrastructure. The company is fully responsible for maintenance and issue resolution.
Cloud:
Although there are several cloud models—public cloud, private cloud, and hybrid cloud—all resources are hosted in the cloud provider’s environment. However, organizations retain access to and can scale these resources as needed.
Cost
On-Premise:
Companies deploying on-premise software must bear the costs of servers, power consumption, and physical space.
Cloud:
Organizations using cloud services pay only for the resources they consume, without maintenance costs. Pricing scales up or down based on usage.
Control
On-Premise:
Organizations have full ownership and control over their data and systems. Companies with high security sensitivity often hesitate to move to the cloud for this reason.
Cloud:
In cloud environments, data ownership remains a critical concern. Data and encryption keys are often managed by cloud vendors, which may limit access in unforeseen circumstances.
Security
On-Premise:
Organizations handling highly sensitive information—such as government institutions and banks—require strict security and privacy controls. Despite cloud advantages, security concerns often lead them to continue using on-premise solutions despite higher costs and complexity.
Cloud:
Security remains a key concern in cloud computing. Reports of cloud security breaches continue to emerge, raising concerns within IT departments—from employee personal data exposure to potential loss of intellectual property.
Compliance
On-Premise:
Many organizations operate under strict regulatory requirements, such as those in telehealth, e-learning, and other regulated industries. These organizations must maintain full visibility and control over their data at all times.
Cloud:
Organizations adopting cloud computing must ensure their cloud providers comply with industry regulations. Sensitive data must be protected, and customers, partners, and employees must be assured that their data is secure.
Whether you choose on-premise or cloud solutions, the decision should always align with your organization’s needs. At Indonesian Cloud, if you choose cloud infrastructure to support your business or organizational activities, we offer both public cloud and private cloud services.
Public cloud provides the advantage of accessibility from anywhere without location limitations, while private cloud allows you to have a dedicated cloud environment built and operated exclusively for your organization.
That concludes our explanation. If you would like to read more technology-related articles or obtain further information about Indonesian Cloud products, please visit our website at Indonesiancloud.com and our VPS website cloudhostingaja.com. See you in our next article.