Key Differences Between On-premises vs Cloud-based SaaS - Offer18

Key Differences Between On-premises vs Cloud-based SaaS

05-Feb-2021

When it comes to choosing which is best between an on premise and a cloud-based SaaS model, many enterprises find it hard to make a decision because they are unable to properly evaluate the options. Knowing what each option entails and comparing them side by side allows businesses to know which is suitable for their needs. If you’re looking to choose between an onsite or hosted solution, here are some of the key differences to know between them.



Deployment:


On-premises:

In an on premise environment, your company will be responsible for deploying the resources within your enterprise’s infrastructure. You will be in charge of maintaining the solution and other related processes.

Cloud-based:

In a cloud environment, the resources are hosted on the premises of your service provider, who is responsible for its performance, maintenance and security. However, your enterprise will still be able to access the resources whenever you desire.



Cost:


On-premises:

If you adopt an on-site approach, you will be solely responsible for all the expenses related to the solution. In other words, you will have to make a budget that covers costs such as hardware purchase, software licensing, power, space, cooling systems etc.

Cloud-based:

For enterprises that choose to use a cloud computing model, the costs are minimal since almost everything is handled by the SAAS provider. In other words, there will be no burdens since the expenses have been transferred to the provider.



Control:


On-premises:

Perhaps, one of the biggest advantages of an on premise-based SAAS environment is that you will be fully in charge of your business data. This is usually a priority for businesses in highly regulated industries as they are in control of their sensitive information, so there is no cause to worry about a data breach.

Cloud-based:

In a cloud computing environment, you won’t get much freedom with your software and data since they are not in-house. Your cloud service provider has the data and encryption keys, and that means there might be an issue if there’s a downtime.



Security:


On-premises:

Many companies choose this route because of the sensitive data in their possession. This is often a requirement for businesses connected to the government and banking industries as it shows that they can be trusted to do business with.

Cloud-based:

Although there are concerns about the security of the cloud, time has shown that it is really secure as service providers put in place stringent security measures to safeguard critical data. They also have multiple disasters and redundancy protocols for data security.



Compliance:


On-premises:

Some businesses are required to follow strict regulatory controls and standards, and one of the requirements may be that all their data is maintained in-house. Examples of industries with such regulations are health, security and educational industries.

Cloud-based:

Enterprises that choose a cloud computing model in this instance must do their due diligence to confirm that their service provider comples with the regulatory guidelines. Sensitive data must be secured to ensure privacy.





Conclusion-

Every successful enterprise needs an effective solution that allows them to carry out their daily operations with minimal challenges. By putting into consideration the factors that are peculiar to your company, you can now make a decision on which to go for.



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