Cloud vs On Premise Software. Which Is Right For Your Business with Difference

Written- West Agile Labs – January 2023

Cloud computing has revolutionized the way businesses store data. In the past, organizations could only use on-premise storage to host websites and applications on their servers. With cloud computing, companies can access their information anywhere, anytime. You can also collaborate on documents with other team members using the cloud. Additionally, cloud computing allows companies to avoid managing their servers. With the growing popularity of cloud adoption, organizations are evaluating cloud vs. on-premise options. That’s pretty cool, right? Let us examine the key differences between on-premises and cloud computing.

‍What Is On-premise?

On-premise is also known as on-premises or on-prem. A company’s on-premise computing infrastructure and software reside within its physical offices. In other words, on-premise refers to computer hardware owned by an organization, typically in its own data center. With on premise, your IT staff can better manage server hardware, data, and security with physical access. Data and important information are accessible to your internal teams, and no third parties can access it remotely.

Advantages of On-Premise 

Total Cost of Ownership

You only have to pay for your user licenses once with on-premise solutions. And that’s the reason it is more affordable than cloud solutions.

Full Control

You own all of your data, hardware, and software platforms. You are responsible for configuring, upgrading, and changing the system.

Service Availability

Hosted on-premises software does not require internet connectivity. In other words, your external factors are not stuck in accessing data. Now you enjoy your jingles all the way!

Disadvantages of On-Premise

Expensive Capital Expenditures 

The cost of on-premise systems is pretty high, making capital expenditures necessary. In addition, you must include maintenance costs to keep the software up-to-date and ensure support.


With an on-premise system, maintenance tasks include backups and storage and disaster recovery. The limited budgets and technical resources of smaller companies can make this difficult.

Time-Consuming Implementation 

Installation of software on the server requires a lot of time and effort for premise-based implementation. Let’s hope to look for a solution in the future.

What Is Cloud Computing?

Cloud computing uses remote servers for email, networking, storage, and data. A third-party operator manages, processes, and encrypts data. Cloud operators provide real-time reporting and analytics. Now you have got unlimited computing power and storage capabilities in your hands! Cloud computing gives start-ups access to the financial sector. Companies can scale up or down based on market and customer needs.

Advantages Of Cloud Computing Software

Accessible Anywhere And At Any Time 

A web browser allows you to access your applications anywhere, anytime.


The cloud does not require any upfront costs. You regularly pay, making it an operating expense (OpEx). No worries! Monthly costs add up over time. However, maintenance and support are included, eliminating annual contracts.

Predictable Costs 

Getting aware of your monthly charges in advance is nice right?  You can pay monthly for software licenses, upgrades, support, and daily backups.

Hassle-Free IT Environment

With cloud-based software, maintenance is taken care of by the cloud service provider. Get rid of your worries about hardware or software compatibility! Now your cloud service provider will handle all upgrades.

High-Security Levels

Most businesses cannot afford the security measures used by data centers. At Times you may lose your data on the server but not on a cloud anymore.

Quick Deployment

Unlike traditional on-premise software installed on a physical server and each PC or laptop, online software can be installed within a few hours.


Cloud technologies can add or remove licenses quickly based on your usage. Why not give it a try?

Reduced Energy Costs 

The cloud eliminates the cost of powering and maintaining on-premise servers. Now your pockets are saved with energy bills!

Disadvantages of Cloud Computing


Don’t you have a reliable internet connection? Getting connected to cloud solutions is tough all the way!

A Long-Term Investment

Cloud applications are less expensive upfront but more expensive over the system’s lifetime, increasing the total cost of ownership (TCO).

A Lesser Degree of Customization 

The configuration of cloud software depends on the hosting environment. There may be a problem with cloud solutions in the case of complex development.

The Differences Between On-Premise and Clouds

On Premises On Cloud
Users have more control. A third party is involved, reducing the user’s control.
It is difficult to scale infrastructure. The infrastructure is easily scalable.
Internet connectivity is not always necessary. Cloud services require Internet access.
All of these services are available only within the enterprise. Third parties provide cloud services, so they cannot only be accessed within enterprises.
Flexibility of these services is not very good. Flexibility is a key feature of cloud services.
There is no subscription option. It is possible to purchase services.
The enterprise is responsible for updating hardware and software. Third parties are responsible for updating hardware and software.
Fixed costs. Adding additional services will increase the price.
It is easy to move data. It is difficult to move data.
All deployments take place on a local machine. During deployment, the server is connected to the internet.

Hosting and Location

The main difference between cloud vs. on-premise is server location and software applications. The organization’s computers and servers run on-premise software locally. Offsite cloud hosting takes place on the server of the cloud provider. However, you need a web browser to access it.

An organization’s responsibility is maintaining the servers, software, and all other components. I think you’re well aware that cloud providers host everything in clouds. Also, the cloud service provider maintains all resources, such as servers, software, etc. All resources are deployed within an organization’s IT infrastructure on an on-premises setup.

Control Level

With on-premises, organizations have complete control over their resources, services, and data. They are responsible for determining who can access it and what happens to it. Third-party servers host data in a public cloud environment. The cloud service provider might not be able to provide access to your data if there is an unexpected issue.


Many organizations prefer an on-premise environment when it comes to cloud computing vs. on-premise security. If you want to inline over a high level of security then store your data in the organization’s servers. Now you’re out of cloud breaches and hacking!


As far as cloud vs. on-premises cost is concerned, the cloud is generally cheaper. Hardware and replacements are costly with on-premises solutions. You pay for all maintenance costs because you own and control the hardware. Unlike hardware or physical infrastructure, cloud services don’t require you to buy them. It is charged as a subscription fee rather than paying for hardware and keeping it maintained. To determine the cost of on-premises versus cloud infrastructure, it is also important to consider the costs of the premise. With on-premises, space, server hardware, and power consumption are also ongoing costs for the organization. A monthly fee for cloud space includes all of these costs.

Final Words

Conclusion: At the end of the day, both cloud computing and on-premise software come with their own advantages and disadvantages. On-premise software may be the best choice if you need high levels of control, security, and reliability. Organizations benefit from cloud computing in all senses. A cloud solution is less expensive than an on-premises solution from a financial perspective. A cloud solution requires no initial investment or unexpected expenditures; the monthly or annual expenditures are fairly straightforward to calculate. On-premise solutions incur expenses even when not used, but cloud services cost exactly what you use. A robust risk management protocol is also part of what makes cloud solutions more secure.

WAL provides enterprise-class services in parallel maintenance-ready data centers with enterprise-class cloud infrastructure. In addition to simplifying multi-cloud deployments, the WAL Enterprise Cloud delivers a consistent data layer across clouds and powers new data economy applications with sub-millisecond response times. A major advantage of WAL’s enterprise cloud storage service is its scalability, simplicity, agility, and cost-effectiveness. Our public, private, and hybrid cloud options offer a range of ready-to-use compute, storage, and network resources. You can depend on WAL to migrate your applications due to our high-availability, resilient cloud infrastructure.

# # #

About TimeLinx
TimeLinx delivers innovative project & service management software as a complete solution that perfects the sell-track-manage-support-bill cycle that services organizations must have to delight their customers; TimeLinx brings the cycle together in a single application that offers less frustration, better project management, complete reporting, and improved profitability – all specially designed for Infor and Sage.