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Cloud Vs On-Premise Software: Which Is Best For Your Business?

data storage, how to choose data sotrage, on-premise vs cloud

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Deciding whether cloud or on-premise software it’s the best choice for your business can be difficult. That’s because both have great qualities in their favor. On one hand, on-premise software is installed locally, giving you complete control over data and applications. But on the other hand, cloud software offers easier access and a host of additional features, such as scalability and support. So, how to decide which is right for your business?

Despite the pros and cons of each service, you must keep in mind data security. Cloud services can have a security breach as much as any device. Besides that, you’ll also have to understand the pros and cons of storing data in a public cloud.

When we talk about data security and data loss prevention, we realize that the best option is to keep all data stored in more than one system. Therefore, when possible, use both cloud and on-premise software.

If you are not there just yet and must make a choice, we can help you make a decision. This list of pros and cons for on-premise and cloud software should give you enough information to make your decision.

Top Summary: When you have to make an important decision, looking for all available information and making pros and cons lists are a great starting point. With data security always in mind, you can decide between cloud or on-premise software using topics like how much data control you need or if you need it available anywhere you are in the world.

Quick comparison: On-site storage vs. Cloud

On-site Cloud
Initial Cost $$$$$ $
Operating Cost $ $$$
Scalability ☆☆ ☆☆☆☆☆
Flexibility ☆☆☆☆☆ ☆☆☆
Maintenance ☆☆☆☆☆
Control ☆☆☆☆☆ ☆☆☆
Privacy ☆☆☆☆☆ ☆☆☆☆
Security ☆☆☆☆☆ ☆☆☆
Compliance ☆☆☆☆ ☆☆☆

On-premise software

On-premise software requires you to install the software on your devices, and to use it you’ll need to purchase a license, which can be over-budget for some enterprises. Even so, it has a high-security level, making it perfect for companies that store a high amount of sensitive data.

Unlike a cloud server, on-premise is of entirely maintenance and property of the license owner. Meaning that an in-house IT team is required. But it also means you have full access and control over the data.

The pros

Complete control over data and applications

On-premise software is installed on your business’ computers and servers, giving you complete control over what data is accessed and how it is used. This can be important for businesses with sensitive data or who need to comply with specific regulations.

Compliance with regulations

Sensitive data that require HIPAA, FERPA, and other industry and government regulations are better off using on-premise software since with it the data is only accessed and is managed only by authorized personnel.

The cons

Difficult to access

On-premise software is installed locally, which means it can be difficult to access if you’re not on the same network as the server. This can be a problem for businesses with remote employees or multiple locations.

Requires IT expertise

As on-premise software is installed on your own servers, you will need someone with IT expertise to set it up and maintain it. This can add to the overall cost of ownership.

Inflexible

Once on-premise software is installed, it can be difficult to make changes or scale up your usage. If you need to increase your storage capacity or add new users, you may need to purchase additional licenses

Summary: Even though sensitive data will be safer in on-premise software, its higher cost can make it difficult for a small-budget company to use it. On the plus side, you can access your data without the internet and have full control over it.

Cloud software

Using Cloud to store files has only been popularized recently, but its invention dates back to the 1960s, by the psychologist and computer scientist J.C.R. Licklider. His intention was to connect people and data worldwide. Which we are still perfecting and using over sixty years later.

Cloud storage is an efficient, low-cost, and highly secured way to save and access files from everywhere. From vacation photos to critical company documents, cloud software can help keep their data updated and allow editions from any permitted device, anywhere, anytime. The only thing you need is internet access. So, you won’t have to install anything on your devices.

Small and medium-sized businesses are preferring cloud services since employing a third-party platform it’s 40% more cost-efficient than having an in-house system. But businesses of all sizes are following this tendency due to all perks of a cloud service.

The pros

Easy to access

Cloud software can be accessed from any device with an internet connection, which makes it ideal for businesses with remote employees or multiple locations. A reality that the pandemic introduced, but that hardly will cease.

Scalable

Cloud software is easy to scale up or down, depending on your needs. If you need to add more users or storage, you can do so without having to purchase additional licenses.

Support and updates included

When you subscribe to cloud software, you’ll also have access to support from the vendor. This can be helpful if you run into any problems using the software. In addition, all updates and patches will be installed automatically, so you don’t need to worry about keeping your software up to date

Maintenance costs

Since you are not the one responsible for keeping the cloud software working, you can eliminate cloud IT costs. And you can predict how much it will cost for you per month since cloud storage is surprisingly cost-free.

Automatic backup

All your data can go automatically to your cloud service, in the frequency you’ve set, saving you time and sparing headaches over a non-saved file that you had just finished editing before shutting off your PC.

The cons

Less control over storage data: 

As your data is stored on the vendor’s server, you don’t have as much control over it as you do with on-premise software. This can be a problem for businesses with sensitive data or who need to comply with specific regulations.

It doesn’t have compatibility to migrate

 If you decide to move your business data to a new cloud service, you’ll find yourself in a time-consuming task to migrate all data storage from one service to another. That’s because of vendor lock-in. The more data storage, the greater your trouble, making it very difficult as the size of the company increases.

You must have internet access

The biggest con for cloud-based storage services is their internet need. If your internet provider is failing or you have a total internet black-out for a day is almost the same as saying it’s a workday lost.

Summary: Cloud can be very useful for money-saving, being the best option for medium and small businesses. No worries about IT, surprise costs, or losing data for device failure. But, you won’t be able to fully control your data and will always be a hostage to your internet.

The purpose of this pros and cons list is to help you realize which storage to use at your business. Deciding between on-premise and cloud software depends on your business-specific needs and requirements. If you need more control over your data or are working with sensitive information, then on-premise software may be the best option. However, if you need flexibility and scalability, then cloud software may be a better fit.

In all situations, protecting your data is of extreme importance. Make sure you use security services and always keep a data recovery plan. Besides making regular backups as a data loss prevention.

But, if something already happened to your data, don’t hesitate to give us a call at +1 (800) 972-3282. We’ll help you recover your data. You can also look for a data recovery specialist.

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