On-premise or Cloud: Which Kind of Business Management Software Should a Company Use?



Tidio Live Chat Software - Add Tidio live chat software to your website in minutes. Contact visitors and turn them into happy customers. Enhance their experience and boost your sales. Get it for Free

When you run a company – whether big, medium, or small – you are constantly put in the condition of making a remarkable number of crucial decisions, one of them concerns the way you collect, record, store, manage and organize your business’ data; or, in more general terms, the way you administer your workflow.

There are many systems, protocols, and methodologies to do that. Still, in the internet era, they are basically divided into two categories: on one side, we have on-premise systems, software, and applications, which allow a company to manage everything internally.

Also Read

On the other one, we have cloud-based systems, which rely on a third party (notably a provider that puts at the client’s disposal its Cloud platform) to allocate a company’s data while keeping them available for those who have to work on/with them.

Each of these systems has its pros and cons, and both must be considered before choosing one.

Elegant Themes - The most popular WordPress theme in the world and the ultimate WordPress Page Builder. Get a 30-day money-back guarantee. Get it for Free

In short, having on-premise software allows a company to keep full control of its data and enhances its level of security since no one outside the company itself can have full access to them.

On the other hand, a cloud platform allows a company to store its data, providing them with virtually unlimited capacity.

Moreover, with a cloud, the company is not forced to keep an internal server, with all the additional burdens that this kind of hardware implies. This means having a dedicated staff in charge of keeping the servers safe and efficient and spending a lot of money on hardware maintenance).

That being said, we can sum up the main differences between an on-premise or a cloud managing system in the following points.

  1. An on-premise solution implies an in-house hosting of servers with all the charges related to their maintenance. While a cloud defers to an external party all the expenses and the additional work necessary to keep the servers working and efficient.
  2. An on-premise system means a non-negligible series of additional costs to the company. Besides the hardware’s maintenance, there are the power consumption and the employment of technicians appointed to ensure its proper functioning. Quite the opposite, the only cost of a cloud service is a periodical (typically monthly) fee, which could vary only based on the amount of storage space needed.
  3. An on-premise system allows the owner to avoid the worst nightmare of every sensitive data holder: to be – even if just temporarily – unable to access them. Vice versa, though it is very unlikely to happen, there isn’t any cloud service provider able to ensure at 100% that their servers wouldn’t crash and the data stored in them wouldn’t be unreachable for an undefined period.
  4. An on-premise facility is only accessible by authorized personnel. At the same time, a cloud system could be hacked with all these entails. Like, for example, theft of sensitive data (login credentials, digital identities, personal information).

Despite that, the best providers constantly upgrade their anti-hacking systems, making their digital environments relatively safe and reliable.

As we can see, there isn’t a perfect solution suitable for every company and every enterprise: each subject must detect the fittest one based on its specific needs.

Nevertheless, an additional factor puts the cloud computing solution on the lead, and it’s not the remarkable financial savings that it implies. We’re talking about the reduced environmental impact that a cloud entails compared to on-premise hardware.

Cloud providers tend to optimize their power consumption much more than any company could ever do, and this leads to a significant reduction of noxious emissions.

In other words, relying on a cloud system means helping the environment and saving a lot of money simultaneously, with a pretty high level of security (assuming that you choose a reputable provider). That is not bad for a relatively new technology.

iThemes WordPress Hosting

Stay updated

Subscribe to our newsletter and never miss an update on the latest tech, gaming, startup, how to guide, deals and more.



- Advertisement -
- Advertisement -

Grow Your Business

Place your brand in front of tech-savvy audience. Partner with us to build brand awareness, increase website traffic, generate qualified leads, and grow your business.


- Advertisement -

Grow Your Business

Get these business solutions, tools and services to help your business grow.

Elementor -Join 5,000,000+ Professionals Who Build Better Sites With Elementor. Build your website with 100% visual design that loads faster and speeds up the process of building them.

WP Rocket

WP Rocket - Speed up your website with the most powerful caching plugin in the world. The website speed increase means better SEO ranking, user experience, and conversation. It’s a fact that Google loves a fast site.


Kinsta - If you are looking for WordPress managed hosting, Kinsta is in the leading front. Kinsta provides WordPress hosting for a small or large business that helps take care of all your needs regarding your website with cutting-edge technology.


OptinMonster - Instantly boost leads and grow revenue with the #1 most powerful conversion optimization toolkit in the world. 700,000+ websites are using OptinMonster to turn their traffic into leads, subscribers, and sales.


- Advertisement -
ChatGPT Reaches 100 Million Users in Two Months Microsoft’s Teams Get OpenAI-Based Features WhatsApp New Feature that Allows Users to Create Calling Shortcuts Instagram Working On Twitter-like Paid Verification Feature OnePlus Ace 2 Specs Exposed Online Realme GT Neo 5 Full Specs Revealed  Samsung Galaxy S23 Ultra: The New Android King Twitter To End Free API February 9
MLS Season Pass Now Available On Apple TV App Tesla To Increase Giga Shanghai EV Production to 20,000 Weekly  OpenAI Releases Tool To Detect AI-generated Text Tesla Records Double Net Profit in 2022 India to Produce Upcoming iPhones: Trade Minister Japanese Professor Developed A Power Semiconductor made of Diamond