On-Premise vs. Cloud for your Small to Midsize Business: What to Consider

December 01 - 2021

More and more, businesses are looking to limit resource spending. The past few years have seen many organizations opt for cloud-based or hybrid cloud systems for the financial freedom and flexibility it can offer.

Additionally, according to a Microsoft survey, 94% of small and mid-size businesses value the security upgrade that adopting the cloud has afforded. 

So, when it comes to deciding between an on-premise versus cloud-based system, organizations are weighing the pros and cons.

The Cloud Advantage

  1. Affordable

According to Datometry, cost-cutting was the top-most reason companies chose to migrate to the cloud. This is because you pay only for what you use, when you use it. Charges are incurred as a monthly operating expenses as opposed to a large, upfront capital cost like many on-premises solutions can be.

  1. Scalable and Flexible

Think of cloud software like a balloon – fill in as much air as you need, and remove some of it to make it smaller. With the cloud, 

you can start basic, and add-on services and scale your business up as you go. You have the flexibility to stop

Businessman hand working with a Cloud Computing diagram on the new computer interface as concept

 services and not pay for them anymore when you feel they’re no longer required.

  1. No Maintenance Hassles

Cloud servers are hosted systems run by cloud providers, which means you don’t have to worry about defective hardware, faulty connections, regular upgrades, system downtime, etc. It’s the job of your cloud provider to keep your services running as expected.

4. Highly Secure

Most people who believe the cloud isn’t secure are imagining primitive times – times when large factories and data centers and workplaces were locked and safe, and the computer was easily hacked and exploited by malicious agents. Today, there are high standards of security with concepts like hashing, salting, encryption, multi-factor authentication, etc. becoming the norm.

The On-Premise Advantage

  1. You Own It

Traditionally, business owners have loved to lay claim to office equipment as theirs. But today, everything that isn’t patented belongs to everyone else. The cloud providers offer you services, but some owners do not appreciate the dependability, and would rather own and run the services as their own.

  1. You Control It

Data, software, licenses, upgrades – while all these can be hassles for some, on-premise integration also means you have complete control over these. You get to decide when the next upgrade is scheduled, which configuration your system runs in, what hardware you utilize, etc.

  1. Works Independent of the Internet

“We are experiencing network issues at the moment. Please try again later.” We’ve all read this somewhere at least once. On-premise systems are hardwired within the office and hence, internet downtimes, bandwidth instability, or similar external factors will not affect the uptime of the system.

Which Deployment Model is for You?

For a small business, it can seem like a daunting task to choose between on-premise or cloud services. It comes down to your requirements - whether you want to own and control your data on-premise or scale securely with the cloud.

If you need help deciding, contact Compugen.

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