On-Premises vs. Cloud Computing: Which is the Better Option?

computingCloud and on-premises computing may seem like two different worlds, but they’re actually much more alike than you might assume.

Most people choose to run their cloud services in a colocation facility, which is essentially an offsite data center that houses the servers for multiple companies. When you put your server hardware in such a facility, you benefit from the same advantages as any other data center. The facility offers its clients redundant power supplies and cooling systems, which protect against power outages and overheating equipment. While these aren’t things you need to worry about in your own office, they’re very important when it comes to running the cloud-based server that powers your business.

When you collocate at a professional data center, you also gain the ability to build your own redundant network within the facility. This is something that can’t be done at home or in many smaller companies.

The downside of colocation is the same as it would be if you built and hosted your own server room. When operating a dedicated network, you need staff that’s knowledgeable about Cisco networking equipment and cabling. While there are many IT technicians who know how to work with such gear, they aren’t always available when you have outages or other issues.

Cloud-based services don’t require any knowledge of IT equipment or a physical presence at a data center. Your cloud provider takes care of all those issues for you, so you can take advantage of the benefits offered by an on premises solution without actually owning any servers.



Cloud-Based or On-Premises Solutions: What to Consider

When choosing between cloud-based and on-premises computing, there are four considerations that will help you make your final decision.



Cloud-based services offer an easy way to connect your business with customers and partners around the world, but they also pose a serious security risk if you don’t choose one of the top cloud providers. On-premises servers allow for much more control over information. They require less bandwidth to operate well, which helps you avoid the data traffic jams that can sometimes plague cloud services.


Data Storage Capacity

Cloud-based services are all about flexibility, so they don’t come with the same kind of limits on storage capacity that you get with an on-premises solution. The best cloud providers offer as much storage space and bandwidth as you need, and there are no concerns about running out of disk space.


Hardware Upgrades

On-premises servers can be updated whenever you have the time and money to invest, but cloud-based services typically don’t allow for hardware upgrades. When your business is ready for faster computers or more storage space, you’ll need to work with your provider to increase or replace your capacity.


Software Licensing

When you run a cloud-based service, you don’t need to purchase licenses for third-party software. It comes ready to go as part of the package deal offered by the service provider, so it saves a lot of time and money in the long run. If you run your own on-premises solution, however, you’ll need to purchase licenses for any program that you want to use in your business.

As you can see, both cloud-based and on-premises computing have their benefits and drawbacks. The best choice for your company will depend largely on the kind of work you do and where you do it.

If your company is already located in an office with a data center, for example, then colocation could be the best option. If, however, you have an IT staff that knows how to configure servers and update software, then on-premises solutions are probably more cost-effective than cloud-based services.

To learn more about how cloud computing can benefit your business, contact one of our sales representatives today. We’re happy to answer any questions you might have and help you find the right solution for your needs.


Sunvera Software develops next-level software applications from start-to-finish. We are a premier software and mobile app development agency specializing in healthcare mobile app development, custom mobile app development company, telehealth software, sales dashboards, custom mobile app development services, retail software development, supply-chain software, ecommerce, shopify, web design, iBeacon apps, security solutions and unified access software.

We are proud partners with Amazon AWS, Microsoft Azure and Google Cloud.

Schedule a free 30-minute call with us to discuss your business, or you can give us a call at (949) 284-6300.