On-premise licenses: the advantages and disadvantages
A dilemma that many companies sooner or later face: will I work on-premise or in the cloud? Several factors must be taken into account when making this choice. In this article we tell you all about it.
On-premise: what is it?
On-premise means that software is installed locally on, for example, a computer or a server. This gives you control over the set-up of this. This ensures that everything remains in your own network, and that you alone have access to this data.
Cloud Computing: What Is It?
Cloud Computing means that all IT related matters go through the internet. This includes things like databases, networks, servers and software. By having everything run via the cloud, there is no longer any need for storage. This ensures that you do not need to purchase additional infrastructure. You pay a monthly or annual fee to your cloud provider who maintains your business.
What are the 3 types of cloud computing?
In fact, there are 3 different types of cloud computing.
- Public cloud
The public cloud is basically a public environment. The cloud provider makes storage and an amount of computing power available to the users. The public cloud is available through a pay-per-use model. This model makes it possible to save on infrastructure and other IT costs and the cloud provider is mainly responsible for maintenance.
- Private cloud
With private cloud, the infrastructure is custom-built and owned by a single company. In this, access to IT-related matters is more centralized within the organization. The private cloud can be managed both internally and externally. This model is relatively expensive, but it offers a high degree of security and more options to adapt things such as network and storage to the organization.
- Hybrid cloud
The hybrid cloud is a combination of the public and private cloud. It connects both into one infrastructure for the execution of applications of the organization, among other things. Because it is a combination, the hybrid model offers a more tailor-made solution.
Why choose on-premise?
Opting for on-premise brings the necessary advantages, the most important of which are:
- In the medium to long term, it is significantly cheaper than the cloud
- The data is stored locally with you, this offers a bit of security
- Easy to personalize
- More control over things like implementation
On-premise: the disadvantages
Besides the necessary advantages, there are also a number of disadvantages with regard to working on-premise.
- High start-up costs, but this will pay for itself in the long run
- There must be a basic knowledge within the organization to arrange the security itself
- Deployment may take longer depending on personalization
On-premise vs. Cloud computing
Then you may still be left with the question: do I opt for on-premise or for cloud computing. Below we show you the main differences per part.
Implementation & maintenance
- On-premise
When you opt for on-premise, your company is responsible for the implementation & maintenance of the IT matters.
- Cloud
When you opt for cloud computing, the service provider ensures that matters such as implementation & maintenance are taken care of for you.
Ownership & Privacy
- On-premise
Many people and companies attach great importance to privacy. With on-premise, you have full control over your privacy, because nothing is stored in the cloud.
- Cloud
Although the cloud is relatively secure, you can experience downtime (internet problems) and only shared ownership.
Safety
- On-premise
When choosing on-premise, you opt for a degree of security. However, several measures must be taken to maintain optimal safety.
- Cloud
When you choose the cloud, there is less chance that the security of certain things will be compromised.
Legislation
- On-premise
With on-premise, organizations must comply with certain legislation. Checks are carried out. This is easy when all data is managed by the company.
- Cloud
When opting for cloud, the service provider must comply with legislation. It is important here that the data of, for example, employees, partners and customers is secured and that it complies with privacy legislation.
Learn more about what a Microsoft Audit is and how to best prepare for it.
Cost
- On-premise
The initial investment when opting for on-premise seems significant. You will have to deal with costs such as infrastructure, maintenance costs and processes. However, in the medium to long term, you are a lot cheaper compared to cloud computing.
- Cloud
When choosing the cloud, you do not have to deal with large start-up costs. You pay a gradual amount monthly or annually. This will cost you a lot more in the long run.
Flexibility
- On-premise
Because on-premise systems can be accessed remotely, this increases the risk of communication and security failures. As a result, security measures must be taken when personnel want access to certain files.
- Cloud
Because one works in the cloud, one can access certain data anywhere in the world. This makes the flexibility very high in cloud computing.
On premise vs. Cloud computing: the biggest difference
By now you know more about the differences between on-premise and cloud computing. The biggest difference, however, is: with on-premise the software is installed locally on servers, while with cloud computing it is hosted on the provider’s server. In addition, on-premise is much cheaper in the long run than with cloud computing.
Find out more about the differences between Office 2021 and Microsoft 365.
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