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In recent years, “the cloud” has exploded in popularity. There has been a widespread adoption of cloud-based services—and this trend isn’t going away any time soon.
A lot of companies are beginning to adopt cloud-based solutions, shifting away from on-premise solutions. This sudden change has caused a lot of entrepreneurs to question which one is best for their business. This is why Kennected has put together a handy comparison that explores the differences between the two, from functionality to security. Let’s take a closer look.
Cloud Based & On Premises Lead Generation Software Differences
It’s hard to deny the benefits of the cloud. It frees you from the regular constraints of on-premise hardware. These solutions are also updated constantly so that their functionality is always current. Of course, on-premise solutions have their own set of benefits, which is why companies are conflicted over which one to choose.
Understanding their differences can help you pick a side in this debate. The main difference between cloud-based and on-premise software is where they reside.
On-premise software is installed locally—directly on your business computers and servers. On the other hand, cloud-based software resides in the cloud, which means it is hosted on the vendor’s server. You can then access it using a web browser via the internet.
But beyond that obvious comparison, there are other qualities that need to be considered when choosing between the two. This includes cost of ownership, software ownership, additional services, security, support, and software updates. Both of these options come with their own pros and cons.
What is the Difference Between Cloud-Based and On-Premise Mobility Solution?
A mobility solution refers to software solutions that help connect digital devices for the purpose of reinventing business processes and giving access to relevant information. The goal of mobility solutions is to increase productivity while decreasing cost for businesses. These solutions allow companies to build new revenue streams quickly and easily.
On-premise mobility solutions are installed on a company’s own servers and behind its firewall. It’s the traditional way of keeping data and accessing solutions needed by the company. And even with the cloud’s booming popularity, there’s no doubt that on-premise solutions are here to stay. They can still serve their purpose, and they still have their own advantages.
On-premise software requires the company to purchase a copy or a license of the software in order to use it. Since the software itself is licensed, the software resides within the company’s own premises. In terms of security, you can’t be more secure than having all your data in your own premises. If an organization prefers to keep the tightest security around their data, they may want to stick with an on-premise solution. Some businesses in highly regulated industries don’t even have to choose. These companies may have to use on-premise software for security purposes. In this regard, on-premise solutions provide more peace of mind.
Of course, this also means you have to manage and maintain the solution yourself. This means you need to hire your own IT employees to manage the software or to train your team on how to use it. This type of software also requires more maintenance. Your company has to handle it when something breaks or doesn’t work. This can be more costly in the long run.
On-premise solutions are reliable and secure. It gives companies a good amount of control that the cloud sometimes fails to provide. With that said, a lot of IT experts are agreeing that the cloud is the future, and if companies are to achieve their business goals, they need to implement a few cloud and software as service (SaaS) applications as well.
Cloud-based services are very popular right now and for good reason. They offer flexibility, accessibility, and on-demand solutions.
With a cloud-based service, a third-party provider hosts everything for you. This approach allows companies to pay only for the services that they need rather than the entire package. It also provides more accessibility, because you get to use it any time anywhere by just connecting to the internet.
Cloud-based software can provide solutions that are tailor-made for the needs of the company, no matter what the size. This is different from on-premise software that has everything in one package—even the features and functions you might not need.
Cloud-based servers use virtual technology to host all of your company’s applications offsite. Your data will be kept in the cloud and it can be backed up regularly. You only need to pay for the resources that you actually use.
New updates to the software are readily implemented: no need to spend time installing or configuring the software to get those new features to work. It’s easy to see the appeal of cloud-based solutions especially for companies that are trying to grow.
What is the Difference Between Cloud Storage and On-Premises Storage?
On-premise and cloud-based solutions also differ significantly when it comes to storing your data. With an on-premise software, all your business information are stored within your premises. On the other hand, your data will be kept in the cloud if you use a cloud-based solution.
On-premises storage means that your company’s server is hosted within your organization’s infrastructure. This typically means it will stay onsite where it physically exists. Through your local network, your data as well as any other information can be shared between computers. Your company will control and maintain the application. You need an in-house IT team to make sure everything runs smoothly.
A cloud storage will keep all your data and information in a cloud server. It will be hosted by an outside service provider such as Microsoft. Because the cloud provider installs and maintains everything from the software to all other supporting infrastructure, all you really have to do is use the application. You create an account using your PC or mobile app and connect to the internet to use the software.
What Are the Pros and Cons of Using the Cloud?
Using the cloud has its advantages and disadvantages. The pros are simple enough: you can access the software anywhere and anytime with a web browser. Since the application is managed for you, you don’t have to worry about IT. No need for maintenance or regular updates. These are done automatically by the service provider.
The cost of cloud-based software is very predictable—not to mention affordable. You only pay for the services you actually need, which is why the monthly payment plans are very manageable. You make regular payments instead of paying upfront costs. While this expense may add up over time, you also get to save money on IT, maintenance, and support services.
Using cloud-based software even helps you save money on energy costs since you don’t have to power your on-premise servers. Moving to the cloud can significantly reduce the amount your business pays for your energy bills.
Just because your data is in the cloud doesn’t mean it is not secure or safe. Data centers have high levels of security that are designed to protect your data. They typically use high-end security measures that most businesses cannot afford. So in this way, having your data in the cloud is actually more secure.
Cloud-based solutions are quick and easy to deploy. They don’t need to be installed on a physical server. No need to spend hours or days trying to implement the application into every single PC or laptop. These solutions are typically ready to go after a quick setup.
Finally, these solutions are highly scalable. They provide great flexibility because you only have to pay for what you use. You can add or reduce the number of features you are using, which helps you create a solution that fits your business needs.
As for the cons of cloud-based software, it does have a few disadvantages. The biggest one is that you need to have access to the internet in order to use these solutions. If you lose your internet connection, it can impact your productivity.
There’s also the possibility of the service becoming more expensive in the long run, especially if you are using many different features. That said, cloud-based software are an incredible investment for your tech stack, no matter what your business goals are, whether it’s lead generation, managing customer relationships, etc.
What Are the Pros and Cons of Using On-Prem Software?
With an on-prem software, you have total control over your data, as well as the software and hardware you are using. And because you only have to pay for the license once, this type of software may be less expensive in the long run.
Because the software is within your premises, you don’t have to rely on your internet connection in order to access your software. Compared to the cloud-based systems, this is considered the traditional approach. It’s still reliable and effective, but it does have its limitations.
In terms of cost, you only have to pay for it once, but you will also take charge of maintenance. You have to spend money on a dedicated IT team to keep it running in case something breaks and stops working. Aside from maintenance costs you also need to accommodate upgrades and support. The upfront cost is also bigger than a cloud-based system most of the time.
It usually takes some time to install and set up on-prem software. Implementing these solutions may take longer because of how much time it takes to install these applications on each individual computer. This is not as optimal as a cloud-based system where there is practically no installation period—only the setup phase. Updates and upgrades are also done on the service provider’s end.
These drawbacks may be more impactful for smaller businesses because of their limited budgets.
Is Cloud Safer than On-Prem?
Whether you choose to keep your applications within the premises or in the cloud, security will always be one of the most important things to keep in mind.
Despite all of its benefits, a lot of organizations hesitate to implement cloud-based software into their tech stack because of security concerns. But these cloud-based solutions have evolved to the point where they are even more secure than on-prem storage in terms of data security.
While it’s still possible for on-prem data storage to surpass the cloud’s security standards, it is no longer more secure by default. Not to mention it is very costly for on-prem solutions to be upgraded to the level of security offered by the cloud. A few years ago, the cloud struggled to even keep up with the high level of security provided by on-premise software. But now, all the data stored in the cloud are much more secure against things like data loss or theft.
So unless your business has a huge IT budget, multiple offices, and 24/7 security, your data is probably more secure in the cloud.
Can Cloud Be Hacked?
This is another common question about the cloud since it keeps data online. It is natural to have doubts about keeping your sensitive information in the hands of a third-party. But the good news is that these major cloud service providers like Microsoft Azure, IBM, Amazon Web Services, iCloud, and Google Cloud Platform have all taken extra measures to improve data security.
On the other hand, hackers could possibly access your hard drive through malware, ransomware, or phishing scams.
Cloud-based solutions have various security measures in place to keep user data secure. For starters, the files that are stored on cloud servers are encrypted. Because data is scrambled, it is much harder for hackers to access the files on the cloud.
Cloud data is also stored behind firewalls in order to filter suspicious network activity. It is very difficult for hackers to slip in viruses or malware. Aside from these safety precautions, the cloud also backs up your data in different locations so that it isn’t lost even if the servers fail. Even if one server fails, users can still access their data from another location.
Finally, these cloud companies also use additional security updates to help protect user data from the latest malware.
With that said, no service is completely foolproof. Using strong passwords, enabling two-factor authentication, and using other safety precautions on your end can keep your account safe.
Is Cloud More Expensive than On-Prem?
On-prem software may have a bigger upfront cost, but cloud-based software may be more expensive in the long run. But they do come with many added benefits that make the investment worth it. Cloud-based solutions are flexible, secure, and scalable. They also let you skip on maintenance costs and even contribute to a lower energy bill.
The truth is that there are different factors that may affect how much you pay for either type of software. There is no exact way to tell which environment is more affordable in the long run. At the end of the day, it depends on the specific needs of the business in question. There are situations where on-prem is less expensive, while there are other scenarios where it is pricier.
You need to think about things like software licenses and upfront hardware costs. Moving to the cloud means there are no significant hardware investments. It’s more similar to renting the hardware by paying a small recurring fee.
On-premise and cloud-based software have two different cost structures, so it really depends on which one is better for your budget. It’s up to you whether you want to buy the license outright or rent it and pay a smaller fee on a regular basis. With a cloud-based solution, you don’t have to make a major investment, so you can instead use your budget in other areas.
Another reason why cloud-based software is sometimes cheaper than on-prem is because you don’t have to replace your hardware. With an on-prem infrastructure, you may have to replace your hardware every few years. This is not the case for cloud-based solutions.
Even as technology evolves, your organization will be able to adapt to the changes because there’s no need for any additional investment to upgrade your software. All upgrades and updates are done by the service provider.
There’s an argument to be made that because you are continuously paying for cloud-based services, it is ultimately more expensive. But again, you only have to pay for the services you use anyway. This adds to the cost savings that you get to enjoy, whereas on-prem solutions require you to pay for the entire thing.
Finally, there’s the cost of manpower. On-premise infrastructure require IT personnel to keep them up and running. This is another maintenance cost that ultimately makes on-prem more expensive than cloud-based solutions.
What Are the Components of Cloud?
Now that we’ve talked about the key differences between on-premise and cloud-based solutions, it’s time to talk about some of the components of the cloud.
Cloud-based software could benefit your tech stack in a number of ways including cost reduction, mobility, scalability, and data security. The components of the cloud architecture are the following: client infrastructure, application, service, runtime cloud, storage, infrastructure, management, security, and internet. These components exist in the front end and the back end, with the front end being what the user sees, and the back end being managed by the service provider or host. The internet connects both ends.
Let’s have a quick look at what these components are:
The client infrastructure is the part of the frontend that allows users to interact with the cloud. The application is the software itself—it’s what users access via the cloud.
The service is what the client needs to use based on their requirements. This service may be one of the following: Software as a Service (SaaS), Platform as Service (PaaS), or Infrastructure as Service or (IaaS).
The runtime cloud is what provides the execution and runtime environment to the virtual machines. The cloud’s storage component stores and manages data. This can be accessed by multiple clients at the same time. There are three basic configurations for cloud storage: public cloud, private cloud, and hybrid cloud.
The infrastructure provides services on the network level, application level, and the host level. It has all the software and hardware components that are needed to support the cloud solution.
The management component is for managing storage services, runtime cloud infrastructure, applications, etc.
The security component is the backend, and it is all about data security. It includes various applications, policies, and technologies that protect the IP’s data, infrastructure, and applications.
Finally, the internet is the medium that connects the frontend and backend components. It allows all the components to interact with one another.
Cloud computing is becoming more and more popular by the day, and it’s not surprising. Not only does it provide a lot of advantages over on-premise solutions, it even surpasses it in terms of pricing and security. Companies need to learn how to adapt to these new changes in technology in order to get ahead of the competition. Incorporating both on-prem and cloud-based solutions into your tech stack for lead generation will help you bring your services to more customers.