Companies use different kinds of systems to manage their data and processes efficiently. Take for instance a sports club, which could use sports club membership software that will make the management of their students’ and coaches' files easier. This clubs software may also have other features such as scheduling, enrollment, and note recording.
The only choice that businesses had before was an on-premise system that is physically accessible only on the computers where the program is installed. Today, there is also the option of having a cloud-based application. Everything is stored on the provider’s server, and users can access it using the Internet. If you are not sure which option is the best for you, here are the pros and cons of an on-premise and cloud-based system.
Pricing
- The cloud-based system is offered in a monthly and yearly subscription. If you end up not liking it, you can end the subscription and stop the payment. The upfront cost is cheaper as there is no need for any additional hardware or storage. Troubleshooting service is also often included in the subscription. However, the payment is continuous if you decide on keeping it.
- The upfront cost is higher with an on-premise application, but this is only a one-time fee for its use. There may be added cost on updates and repairs, but there is no monthly or annual fee to think about. If added storage or hardware is required, this will also add up to the cost.
Implementation
- Cloud-based is quicker to implement because everything is done online.
- A premise-based program takes more time to deploy because it requires installation on the machines. The company selling the application may send an IT to the job, or if you have an IT department in your business, they may do the setup.
Security
- The security of a cloud-based system relies on the vendor. This is not an issue as long as you are dealing with a trusted and reliable provider.
- The security of a premise-based system relies on your own company. You should have proper security features such as firewall and anti-virus to prevent unauthorized access or attacks from malicious applications that may compromise your data and business operation.
Customization
- Most programs that are cloud-based have fewer customization features.
- On-premise systems are more customizable than the other option. You can also work with the developers on what features you wish to add.
Control
- Since cloud-based programs are saved on the server of the provider, they have control over its management.
- You will have complete control over the software if it’s installed on-premise.
Accessibility
- Cloud-based applications are more convenient to access. As long as you have an Internet connection, you can do this on your laptop, desktop, smartphone, or tablet.
- If the software is installed on-premise, you need to log-in to the specific machine where it is installed to gain access to it.
Cloud-based and on-premise systems have their own advantages and disadvantages and every company also has its own needs. Weigh your options and determine which best matches your needs to make a sound decision.
