Cloud Software vs On-Premise: which to choose?
In an era where software is increasingly managed remotely for various reasons, including financial, ecological, human, or time constraints, companies must consider numerous factors to decide when a cloud infrastructure might be the right solution. Conversely, some business structures will not opt for a 100% cloud approach and will instead rely on traditional applications and software, known as ‘On-premise,’ to conduct their activities. To begin, it is crucial to understand the strengths and weaknesses of these setups to choose a software solution that fits your organization’s daily needs.
Highlights:
1. Is the cloud a turnkey solution?
2. Is on-premise a tailor-made solution?
3. Key takeaways for choosing software
Cloud Software: The turnkey peace of mind solution
For companies looking to accelerate their digital transformation, Cloud or SaaS (Software as a Service) has become very popular. Its appeal and promises to offer professionals unprecedented flexibility, from saving time and money to improving agility and scalability.
Advantages from a software perspective:
Easy online data access security: Whether on 4G or Wi-Fi, your documents are accessible during your travels, with coverage extending across the entire territory. From a security standpoint, this prevents data loss, intrusions (data leaks, malware…), or unwanted sharing.
Centralization of information: A remote worker can gather their files and share them securely with various company teams.
Low material expenses: The company rents the software from its provider based on the number of users, known as Software as a Service (SaaS).
Integrated software environment: Cloud software also serves as a digital platform that integrates with other solutions through API connectors, allowing for the combination of business applications managed by your IT services, such as an ERP, CRM, or even an online store.
Pre-configured settings for immediate use: The provider manages the server infrastructure, so no expertise in this area is required.
Scalable solution: For updates, a simple internet connection and a web browser are all that’s needed to access the latest software version.
Disadvantages depending on the infrastructure:
Security dependency: Secure user authentication at login is crucial. With data being remote, the company must ensure the existence of two-factor authentication and robust security rules for accessing information.
Hidden costs: Notably, storage and technical support costs can quickly increase your bill if not included. Various billing options for document management solutions may be proposed, such as charging by the number of documents, their storage size, per user, per team, etc. These points should be clarified when comparing prices.
Complete outsourcing and provider choice: If the provider decides to discontinue their service or schedules maintenance windows, it can negatively impact users. When choosing cloud software, consider whether you prefer a virtual server over a physical one, as virtualization allows the cloud to replace physical hardware.
On-Premise software: control over your environment
Whether a company opts for Cloud applications or decides to keep them on-site, data security is paramount. Knowing that your data resides on your own servers and infrastructure can provide greater peace of mind. On-premise has its advantages:
Advantages from an internal perspective:
Customized IT infrastructure performance: This implies that your team is committed to the daily management of the IT park. If the company’s size permits, adequate human resources and internal skills must be allocated to these areas.
Storage and backup automation: Often chosen for compatibility, software updates depend on the internal ecosystem and other applications.
Closed circuit connection: On-Premise software isn’t affected by internet connection issues, operating in a closed circuit. However, this limitation can be quickly reached if remote work is necessary.
Storage flexibility: Increasing storage space on a physical server may seem less costly, but this must be considered in the context of overall expenses (maintenance, backup management, etc.).
Disadvantages if nothing is outsourced:
- Increased management time: Installation, software updates, etc., will require time and human resources. It’s essential to find the right balance between cost reduction and security enhancement.
- High material costs
- Configuration and software support: This can contribute to hidden costs, as technical support will depend on access to your network. Updates may require training and could be charged additionally. It’s necessary to review the cloud solution provider’s offer to ensure it meets both current and future requirements.
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Understand everything about the electronic safe
Cloud or On-Premise: which choice best suits you? Key points to remember:
Adapting the choice to the company’s context
The most suitable choice for a company depends entirely on its needs and what it seeks in a solution. While Cloud architecture has been widely chosen in recent years for its speed and flexibility, On-Premise remains a viable option, particularly for large companies that prefer to work on an internal network. These companies will implement an On-Premise solution with their teams to maintain complete control over their infrastructure.
Our Advice for SMEs: For small and medium-sized enterprises, it is advisable to engage a service provider to outsource part of their software, allowing their teams to concentrate on core activities.
A hybrid solution not to be overlooked
With solutions continually evolving, software vendors are offering more hybrid options that combine the best of both worlds. Before proceeding, it is crucial to analyze the current and desired future state to ensure all processes in your company’s services are adequately addressed.