Choosing Between On Premise Versus Cloud Based Software

I have heard arguments for both on-premise and cloud-based software solutions. Each side makes convincing arguments, however, the choice must be grounded a number of things. It’s apparent to me that one form of deployment doesn’t meet all criteria. The top-down products that must be viewed generally fall into certainly one of 6 categories; safety requirements, internal IT support to administrate a solution, customization, original capital cost, ongoing price tag per integration and head to 3rd party software.


Does your organization have a particular have to retain the highest degree of safety measures? Is your firm warehousing confidential info, personal credit info, healthcare info or perhaps any other intellectual property? I find that some cloud base offerings place restrictions and schedules on information accessibility and maintenance which will allow it to be troublesome for quite a few business demands. If higher security is paramount to the company of yours, on premise will be the easiest (not the cheapest) to secure.

Internal IT Staff

On premise solutions will require on staff technical expertise to administrate, control and support. Just how many resources will your firm should take care of the perfect solution? Cloud-based solutions mitigate the demand for time that is full that IT staff.


Many cloud based solutions are available in a multi tenant environment meaning that customizations that your firm might need to have might not appropriate for a multi tenant scenario. Private PODs and/or single instance deployments at a cloud service provider could possibly be suitable for the needs of yours. Private PODs can be high priced subsequently it maybe less expensive to deploy on premise to allow for customization.

Initial Capital Expense

This is probably the most compelling reason that senior management, especially, CFOs such as the cloud option because of the low initial capital cost usually necessary to deploy a cloud based solution.

Constant Cost per Head

Cloud-based solutions will invariably attract a monthly price per agent, per head or various other widely used monetary model. This decision is primarily built dependent on fiscal capital and condition structure inside the tight. I ordinarily see that companies want to save dollars and choose the operations cost of a cloud based solution.

Integration to 3rd party Software

The answer to this particular resides in the structure of the software irrespective of on premise or cloud-based. If a software features a published API or other systems (Webservices) to incorporate with, I have found that both cloud-based and idea based solutions are every bit as helpful. The only real caveat to the cloud-based configuration is how accessible is the facility manager in allowing you direct access to the central application.

IT team members will usually be required to control and administrate most any business system, hence I don’t usually observe this specific item giving much weight to these choices. At a very high level, if security which is tight, customization without serious concern for a good initial capital expense, I usually see management selecting an on premise solution. The alternative side of this is that if affordable security is suitable, and initial capital expense is major factor in deciding on a solution, then I notice management selecting cloud based solutions. Integration to final party legacy devices that are engrained right into a business may induce a choice to one or the many other regardless of the earlier discussed benchmarks.

Deciding on the best program deployment is vital to your company. Be confident you understand the positive aspects and issues will each option before making your choice.
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