What Is The Difference Between On-Premise And Cloud?

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Choosing between on-premise vs cloud is a delicate process that includes a variety of factors. As organizations look to cut expenses, more data and procedures are shifting to the cloud. Traditional on-premise systems lack the flexibility, scalability, and speed that the cloud provides. However, on-premise could be useful in some aspects. Here at Kennected, we have a detailed review of some key differences between on-premise vs cloud. Before that, let us first define on-premise and the cloud.

What is Cloud Computing?

Cloud computing provides computer system resources on-demand, without the need for active management. A cloud computing environment often comprises of capabilities such as storage and processing power. You do not have to buy additional licenses or infrastructure with a cloud-based subscription. Your cloud provider will manage your servers, networks, and other cloud infrastructure like software for an annual fee.

Customers who use a customized private cloud get complete access to the platform without sharing resources. You can further request additional customizations, backups, and upgrades with a shared cloud computing environment. Data stays entirely private, but multiple users can access the cloud service. This is often a cheaper option; however, the customization options are limited.

Types Of Cloud Computing

There are four major categories of cloud environments. They include:

Hybrid Cloud

Hybrid cloud solutions are the first cloud environment on this list. It combines the benefits of both public and private cloud environments. This model is used by businesses to supplement their processing power. Organizations can use public cloud services to increase the capabilities of their private cloud after it reaches its capacity. Hybrid clouds enable businesses to scale up, or down their compute capacity dependent on traffic and service requirements. The organization saves money, time, and effort by reducing the need to acquire and manage a new server.

Private Clouds

A private cloud environment is a cloud dedicated to a specific end-user or group and is often protected by a firewall for that user or group. All clouds are private if the base IT infrastructure is committed to a single customer with entirely separated access. You no longer need to receive your cloud from a local IT infrastructure anymore. These cloud services are now being built offshore from leased vendor-owned data centers, removing any location and ownership restrictions.


Multi-cloud is one of the core business strategies that combines cloud services from many public and private cloud suppliers. Multi-clouds are hybrid clouds. However, not all hybrid clouds are multi-clouds. If various clouds are joined via integration or orchestration, the result is a hybrid cloud. You could use a multi-cloud system to control sensitive data better or as a backup storage place in the event of a disaster. It can also happen by accident, frequently due to shadow IT. In any event, enterprises that want to boost security and performance by diversifying their environments are increasingly using multi- clouds.

Public Cloud

The public cloud is an IT paradigm in which on-demand computer cloud infrastructure is managed by a third-party provider. Its components are sent via the internet to a variety of enterprises. Individuals and organizations can rent these cloud solutions for example Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and Software-as-a-Service (SaaS) on a monthly or pay-per-use basis from cloud service providers. Amazon Web Services (AWS), Google Cloud, and IBM Cloud are some of the most popular cloud solutions today.

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What is On-premise?

On-premise runs everything from implementation to running solutions internally. This also includes maintenance, security, and upgrades handled. On-premise can be installed on cloud infrastructure such as a server but is handled in-house rather than through the internet. On-premise involves the purchase of higher-capacity servers, database software, and operating systems. On-premise allows you to take ownership without relying on a third party. On-premise solutions, therefore, gives the company full control of its operations.

Cloud Software VS On-premise Software

The primary distinction between on-premise vs cloud software is whether it is installed locally on your company’s cloud infrastructure servers or hosted on those of your supplier. There are key differences in cost upgrades, software ownership, privacy, and additional services. Cloud software is less versatile, stable, and secure than on-premise software.

On-premise software, on the other hand, can free up time, effort, and money to focus on core business objectives rather than operation and maintenance and updates. Cloud software requires a stable Internet connection, even if you can monitor your systems in real-time over the internet. The cloud is more popular than on-premise because of its high adoption rate. This said on-premise solutions and cloud solutions both have their advantages and disadvantages.

On-Premise VS Cloud

Here are some of the key differences between on-premise and cloud computing services.


Cloud technologies are a much more scalable model than on-premise technologies. Everything goes to the cloud, and the cloud provider takes care of everything, saving businesses and organizations from tedious responsibilities like system backups, software upgrades, and maintenance. The clouds are advantageous for small firms looking to grow their infrastructure. However, with on-premise, you are responsible for everything in your environment, from system maintenance to cloud infrastructure such as storage. Using this system is sometimes an issue for users with limited technological resources and funding. This, therefore, makes on-premise solutions less desirable for some.


Security is another key difference between the on-premise and the cloud. Data stored in the cloud is more secure than data stored in the on-premise software. This is because public cloud services are superior to private data centers. Break-ins and bad weather, such as cyclones and tornadoes, are more common in offices, posing a threat to the servers that store your sensitive information. Many firms, however, believe that on-premise storage is safer because everything is maintained on-premise. A cloud supplier provides and manages security, and each piece of data is encrypted and protected using a number of security processes. They are, nevertheless, sometimes a potential target for hackers.


Of course, there is no Internet of Things without the Internet. As a result, a stable internet connection is an important component of a cloud solution. You won’t be able to access your data if the internet goes down on your end or at your cloud supplier. However, you do not require internet connections or any other external variables to access data with on-premise solutions. This is the advantage you have with on-premise solutions.

Nonetheless, to convey data from the physical world of assets to the online world of information technology, the procedure relies on several connections in the communication chain. Every link in this communication chain has the potential to fail. Furthermore, since your on-premise software is internal, data loss is more likely to occur in the event of a disaster with on-premise solutions. There is no assurance that you will recover your data when this happens to your on-premise software. That is why backing up your data and keeping it in the cloud reduces the risk of data loss. A few examples of computing and communication platforms today include zoom, Microsoft 360, Dropbox, et cetera.


For on-premise computing, services have to be purchased by the user, except for networks shared between the user and the provider. It is essential to purchase physical equipment, obtain necessary system software, manage resources, and so on, which adds to the user’s workload and operational costs. This makes on-premise solutions a bit more pricey. On the other hand, cloud computing is a usage-based delivery model in which you only pay for what you use. The provider rents all hardware and software components to the user at no additional expense. Cloud computing, therefore, is cheaper compared to on-premise solutions.


In another significant sense, on-premise computing differs from cloud computing. This is in their deployment model. The cloud computing model largely relies on cloud infrastructure virtualization of various resources. This is an on-demand computing model in which the cloud hosts a number of diverse workloads. The cloud is a virtualized collection of computing resources. On the other hand, as the name implies, on-premise computing is a classic computing approach in which corporates or organizations maintain everything on their servers. On-premise solutions are kept on-premise and the company may enjoy faster deployment with on-premise solutions. This said, the cloud computing space is quickly evolving and is catching up in terms of speedy deployment.


Most businesses must adhere to regulatory regulations while using the on-premise strategy. Companies utilizing on-premise solutions must register complaints and maintain their data correctly to comply with some of the government and industry laws. This is conveniently the case if all the data is preserved on-premise. However, when deciding on a cloud computing model, companies must ensure that their service providers comply with the regulatory requirements of a particular industry. Data security and privacy for customers, employees, and partners are critical.

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Benefits of Cloud Computing

As we have seen, cloud computing enables businesses and organizations to operate more efficiently and from virtually any location. Which is more convenient compared to on-premise solutions. Other advantages of cloud computing include:

Automated Updates

Manually upgrading software across an entire company can consume a lot of IT resources. This is the case with on-premise solutions. On the other hand, cloud computing enables service providers to continually refresh and upgrade systems with the most recent technology to provide enterprises with the most current software versions, processing capacity, and servers.

Top-Notch Security

Data security, as previously discussed, is a major concern for today’s businesses. Cloud vendors provide advanced security capabilities such as management, access authentication, data encryption, and others to ensure that information is handled and stored safely in the cloud. On-premise solutions are also secure but have suffered mole attacks in the past.

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There is no right or wrong option when it comes to the on-premise vs cloud software argument. Every customer has their own set of needs, influencing the chosen deployment approach. You should conduct a considerable study on the key differences between on-premise vs cloud to determine which module is ideal. You can also check out Kennected. It’s a fantastic resource for learning about on-premise vs cloud computing. In general, it’s a software firm that offers the best-in-class cloud solutions like LinkedIn Automated Prospecting Tool (Cloud Kennect) for lead generation and Kennected Video.

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