Cloud vs. On Premise

Cloud vs. On Premise

How does a cloud solution compare to an on-premise application? How do you know if the cloud is right for you? We're glad you asked! Take a look at the following overview and let us know if you have further questions.

 

ConsiderationCloudOn-Premise
IT Infrastructure Limited or no internal IT resources and/or no desire to invest in or support additional IT infrastructure Established IT support with software domain expertise and a solid backup and security strategy.
Access Via the Internet or mobile device Client server for local workers or Terminal Server or Citrix for remote employees.
Company Profile Fast growing companies who want to invest in an affordable solution capable of growing with them and want the flexibility of anywhere, anytime access without investing in IT infrastructure. Established companies with the ability to make the required upfront investment to purchase and implement the software. Minimum timeframe for an on-premise solution should be 5 – 7 years.
Remote Locations Have multiple sites or many geographic locations but do not want to build or support remote access to existing network. Have multiple sites across geographic locations and have a supporting network infrastructure.
Software Investment License fee enables the company to use the software. One predictable monthly payment covers everything from infrastructure and vendor software support to daily back-ups and software upgrades. License fee enables the company to own the software. Upfront purchase with annual maintenance / subscription renewals in the 20 – 25% range.
Initial Services Investment Implementation services tend to be less than on-premise solutions since installation, infrastructure prep, and some configuration are completed by the SaaS vendor.
A good rule of thumb is to spend anywhere from $1  - $2 for every dollar spent on the initial software license.
Ongoing Services Investment Business process consulting as necessary. Software upgrades every 12 – 24 months; technical support and business process consulting as necessary.
Hardware / Infrastructure Investment A reliable Internet connection Traditional IT components including server hardware and software, data backups, storage, disaster recovery, and remote access and network connectivity
User Interface Web technology that enables an intuitive, customizable interface and many of the user-friendly features Internet users have grown accustomed to in web-based applications. Mature technology with a traditional Windows interface.
Software Customization Think “configuration”, not heavy customization In-depth customization and integration capabilities; appropriate for companies with a high-degree of customization or a need for extensive custom programming services.
Implementation Time Varies by project size and scope, but implementation time tends to be less than on-premise solutions since installation, infrastructure prep, and some configuration are completed by the SaaS vendor.
Varies by project size and scope, but implementation time tends to be a bit longer and more involved, perhaps adding 1 – 2 months to the timeline of a comparable cloud-based implementation.
CapEx vs. OpEx The subscription model converts traditional technology capital expenses into an operational expense, which can be positive for maximum cash flow flexibility. Software and hardware are capital expenses

 

What types of applications are available in the cloud? The list is long and gets more compelling every day! David Cieslak, Arxis Principal and popular technologist, highlights a bunch of them in a presentation called "Best of the Cloud."

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