Differences between Cloud and On-premise Software

Many companies are interested in getting software, but they’re unsure if they should house it on their own data servers or store it in the cloud. There are quite a few differences between both options, here are a few of them.

Costs of cloud software vs. on-premise software

For on-cloud software, you have a recurring fee for licensing, rather than the one-time capital expenditure fee you get with on-premise software. Some people can take on the fee right away, but for many companies it’s preferable to stagnate payments over time to make them easier to digest.

Since on-premise software is hosted on local servers, you need to buy them, house them, and hire technical staff to procure, implement and maintain them. There’s no such requirement with cloud software, as they’re accessed via the internet and hosted by the vendor. As well, there’s no need to install third party operating systems with the cloud.

On-premise servers use much more electricity, adding to your energy costs. Cloud servers are hosted elsewhere so businesses don’t have to worry about their usage, but utilizing them requires lots of bandwidth for the customer. That’s why LiveControl is optimized to occupy low bandwidth so as to minimize potential charges.

Cloud software vs on-premise solutions

Implementation of cloud software vs. on-premise software

Implementation of on-premise software requires significant testing which means lots of time and effort. Cloud software is all handled off-site so no testing is necessary. That means that less resources are required for internal IT when using the cloud. You also don’t have to utilize a significant amount of time and budget to ensure the system is up and running like you do with on-premise software.

When you purchase hardware for an on-premise upgrade, you’re stuck with it. Whatever upgrades are required for the installation of cloud software are handled by the software distributor, removing all responsibility from the customer.

Cloud offerings are usually platform-neutral, so integration with a company’s existing IT is easier. On-premise software typically requires a specific platform resulting integration issues. It’s easier to scale the resources to the needs of the company with a cloud server.

Updates to on-premise software can result in downtime and dedicated man-hours to implement it. With the cloud, it’s all done by other parties off-site so daily business activities aren’t interrupted.

On-premise software requires domain expertise on-site to deal with the issues that arise, which can be pricey and effort-intensive. With a cloud server, trained agents at the software company handle all those issues for you, so no need for in-house expertise.

As you can tell, there are different challenges with each software solution. Look into both options for the specific software you want to use, but more importantly find companies that give you both options. After doing your research, see which one works best for your company.