on Cloud vs. on premise: The optimal solution for your company

Deciding between on cloud vs. on premise is one of the most important strategic considerations companies have to make today. While both models have their own advantages, the right choice depends heavily on a company's individual requirements, industry, and long-term goals. In this article, we'll look at the differences, pros and cons, and best use cases for cloud and on-premise solutions.

What does "on cloud" and "on premise" mean?

On cloud refers to the use of computing resources, storage, and applications delivered over the Internet by a cloud provider. These resources are managed by external providers such as Microsoft Azure, Amazon Web Services (AWS), or Google Cloud Platform.

On premise, on the other hand, means that the IT infrastructure is physically managed and operated within the company. Servers, networks and software are installed in the company's own data centers and maintained by internal IT teams.

Advantages of cloud solutions:

Scalability : Cloud services allow businesses to ramp up or ramp down IT resources as needed. This is particularly beneficial during times of business peaks or unforeseen demands.
Cost efficiency : Instead of making large upfront investments in hardware and software, companies in the cloud only pay for the resources they actually use. The cloud works on a pay-as-you-go basis.
Rapid implementation : Cloud services provide faster deployment of IT resources, which reduces the time to market for products.
Location independence : Employees can access cloud-based applications from anywhere in the world, making collaboration in globally distributed teams easier.
Automated updates : Security updates and software upgrades are carried out automatically by the cloud provider without the need for IT intervention. However, this is definitely true for every cloud service.

Advantages of on-premise solutions:

Control and customization : Companies retain complete control over their infrastructure and can customize systems to meet their specific needs. This is often a critical factor, especially in industries with strict compliance requirements, such as healthcare.
Data protection and security : Since all data is stored in the company's own data center, companies have more control over security and data protection. This is an advantage for companies with high security requirements.
Cost-effectiveness over long-term use : While the initial costs of on-premise systems can be high, they can pay for themselves over long-term use, especially in companies that have stable IT needs.
No dependence on the Internet : Since the IT infrastructure is managed on-site, companies do not depend on a constant Internet connection to access their applications and data.

On cloud vs. on premise: The challenges

Cloud challenges:

Data protection and compliance : Companies must ensure that the cloud provider complies with legal data protection requirements, especially for sensitive data.
Provider lock-in : Switching between cloud providers can be difficult and costly.
Operating costs : While the cloud may be cheaper initially, costs often rise significantly with intensive use.

On premise challenges:

High initial investment : Purchasing and maintaining hardware is expensive and requires frequent investments in upgrades.
IT staff : Companies need a qualified IT team to maintain and operate on-site systems.
Slow scaling : Scaling infrastructure requires more planning and investment than in the cloud.

Hybrid approaches: the best of both worlds?

Many companies are now opting for a hybrid approach that combines the advantages of both models. In a hybrid cloud environment, companies can run critical data and applications on their own servers, while less sensitive or scalable workloads are outsourced to the cloud. This approach offers flexibility, security and cost efficiency at the same time.

When is On Cloud the right choice?

When flexibility and scalability are important.
When rapid implementation and lower initial costs are a priority.
If the company is globally distributed and requires location-independent access.

When is on-premise the better solution?

When strict security requirements and data protection policies apply.
When a company has long-term stable IT requirements and wants to amortize investments in its own infrastructure.
When full control over IT systems and customization are necessary.

Conclusion: on cloud vs. on premise – What suits your company?

The decision between on cloud vs. on premise depends largely on a company's individual requirements. The cloud offers flexibility and cost efficiency, while on premise solutions offer more control and data protection. A hybrid approach can be the ideal compromise for many companies to get the best of both worlds.

Cloud Manta GmbH supports you in making the right decision for your IT infrastructure. We advise you individually and help you find the optimal balance between costs, security and flexibility.