Top 7 reasons for using on-premises solutions vs cloud

April 4, 2023

---

If you need a business messenger, CRM or any other software that requires storing your corporate information, the most secure solution would be using on-premises software. In this case all your corporate data will be stored on your servers, and you will be responsible for its integrity and security. Before choosing between cloud and on-premises software you will need to weigh carefully all their advantages and disadvantages to make the right decision. In this blog post we will talk about main seven reasons for using on-premises solutions.

An ability to purchase perpetual license

When looking through the price list of cloud-based solutions, the price looks very affordable compared to perpetual licenses of the self-hosted ones. First of all, it is important to understand the difference between these payment plans. In the perpetual license model customers pay a one-time fee for the software while cloud-based software is provided on a subscription basis. This way, when purchasing a product with a perpetual license you can use a specific version of it continually with the payment of a single fee while cloud-based software involves long-term costs.

Uptime

You do not need to rely on the Internet connection and other external factors to access your software. You can use it in your intranet which is more secure than accessing a cloud solution. For example, if you need to use a business messenger for communication within your office, a self-hosted solution will be the best one for this purpose. It can be used regardless of network problems. Even if your Internet connection interrupts the employees within your office will still have access to the data and software.

Data security

The security threats of cloud software are a headache for many companies. It can be leakage of employees' personal information, unauthorized access to corporate documents or loss of intellectual property. All these cases lead to severe implications and financial losses.

In an on-premises environment businesses have full control over all data and whatever happens to it. For companies with extra privacy concerns using on-premises software is one of the most suitable solutions which allows installing extra data protection tools to reinforce security measures.

Full insight into security measures

Cloud solutions are more vulnerable to third parties, while on-premises software and data storage are completely restricted from anyone other than authorized personnel. Moreover, the data on dedicated servers is not stored online and thus is not accessible from outside the network. On-premises software is a preferred option for any company that deals with sensitive information, like those in healthcare, finance and government industries.

Control over software and hardware

With a self-hosted solution, the company owns the server and manages it completely itself. This means that there is full control over the hardware and the software installed there. By having a dedicated server to handle business needs, the company can do all necessary upgrades instead of asking a cloud software provider to upgrade their plan or add new features. Cloud-based software plans also have limitations in data storage and in case you need to upgrade, you will have to pay additionally for this.

Compliance with various regulations

Self-hosted solutions give full control over the company's data and allow to remain compliant with different data protection acts which are obligatory to follow by organizations in healthcare, education or government industries.

Flexibility

Customization and flexibility are often the issue for organizations using cloud-based solutions. Cloud solutions have a fixed set of features and do not have a wide range of customization opportunities. On the other hand, on-premises solutions can be tailored to specific needs of the organization.