On-premise vs Public Cloud Service: Which Will Work Better for Your Business

January 13, 2022

Introduction

When it comes to managing data and computing resources, businesses tend to have two basic options: either to manage these resources in-house, i.e. on-premise, or to use a public cloud service provider. Though these two options have their respective pros and cons, it is important to determine which one will work best for your business.

In this blog post, we’ll take a deeper dive into on-premise vs. public cloud service options and help you make the right decision for your business.

On-premise vs. Public Cloud Service

On-premise:

On-premise computing resources refer to the technology deployed within the four walls of a business. These resources may consist of physical servers, storage systems, and networking devices all housed on-site.

Though on-premise systems provide businesses with a more direct level of control, there are some trade-offs that must be considered. For instance, businesses must provide their own resources to keep systems updated and maintained, leading to a higher cost of ownership.

Moreover, on-premise systems may not be easily scalable - if businesses’ computing needs grow, it may require significant investment to upgrade on-premise systems.

Public Cloud Service:

Public cloud service providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud offer businesses pay-per-use computing resources in a virtual environment.

Though businesses have less control over the environment in which their resources reside, they can benefit from lower costs and scalability requirements. Public cloud service providers offer businesses the opportunity to pay only for the resources they require, which can lower the cost of ownership, and scaling of IT resources is easier and more flexible.

Here's a quick summary of the differences between these two options:

Feature On-premise Public Cloud Service
Cost of Ownership Higher Lower
Control High Low
Scalability Limited Flexible
Security High Low
Maintenance & Updates In-house Outsourced

Which Option is Better for Your Business?

Since both options provide their own benefits, it’s difficult to declare one option the winner. It really depends on the unique needs of your business.

If you run a business with minimal computing and data requirements or have strict compliance and security standards, on-premise computing may be the way to go. In contrast, if you have variable requirement for computing resources and prefer the convenience of managed services, a public cloud service may be the right choice.

Conclusion

It’s important to assess your business needs when deciding between on-premise vs. public cloud service options. The right choice depends entirely on the unique needs of your business, so weigh the pros and cons and consider your specific requirements before making a final decision.

We hope this article has helped you better understand the differences between these two options so you can make the most informed decision.

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