On-Premise Hosting Or Cloud Hosting – Which Option Is Right for Your Business?

Deciding where to host your business applications is not an easy feat. Whether on On-Premise or Cloud, ‘which is best for my business’? There is no one right answer to this question, and there is no one-size-fits-all approach. Business owners need to decide the best fit for their organization by knowing the difference between each type. So what exactly do those terms mean? And what do they mean for business?

What Are the Benefits?

Briefly defining both solutions does not tell the whole story. Your organization will have to come to an independent conclusion on what the right solution might be depending on a lot of factors, like the size of your business, the number of locations, the number of teams, capital to spend, and more. Below, we’ll take a look at each solution and their specific benefits:

Your business will gain the following with an On-Premise solution:

• Enhanced control: Your business gains complete and total control with all the hardware related to your network. However, you may need to retain IT professionals that set up and maintain the network to enhanced control as well as security.
• Potential cost savings: Your business might require a single, one-time purchase of hardware and services when establishing an on-premise solution, avoiding reoccurring costs from a subscription. With Cloud Hosting, your business is always paying a monthly fee, and the prices will only grow as you add more features.
• Regulation requirements: On-Premise allows your business to enhanced compliance and ensures the network is adhering to different regulations. In case your business on-premise network goes down, you can act quickly and fix it, or transfer communications to other servers.

Which Hosting Option Is Right For You?

The next step is to determine the solution that’s right for your business now that you are familiar with on-premise and cloud hosting. Every customer is different and has different requirements that will influence the choice of the deployment strategy. So it’s essential to evaluate these systems according to your business needs and goals.

Security

Taking the needed precautions to protect your sensitive data is a crucial part of keeping your business running smoothly. On-premise and cloud offer different hosting models. With on-premises, you host your system on your company’s network while with cloud; you host your system on the third-party’s network. You know where you store your data at all times when your data is on the company’s network, whereas you don’t have that same visibility with cloud since it’s on a third-party’s network.

System Access

Are your workers always on the go, or traveling to different locations? You need to understand the type of system connectivity that will help your team do their work efficiently. Cloud hosting is a mobile-friendly option, allowing users to access the system anywhere, at any time as long as they have an Internet connection. On-premises CRM is more restrictive with its access and can require CRM access to be bound to specific machines or can require multiple logins to the company systems.

Scalability

Do you need a system that scales with your company’s growth? Cloud hosting flexible architecture offers higher potential for expanding the network, allowing businesses to grow their system as their company grows. On-premises rigid architecture translates into more time needed to configure changes, which can result in higher costs.

IT Resources

Is your IT team and budget on a smaller scale? Or do you have a sizable, experienced IT team that can easily handle complex infrastructure? On-premises and Cloud hosting have different infrastructure models. In cloud hosting, it’s the responsibility of the provider to monitor the performance of the system, and making adjustments and fixes as needed. While with on-premises, the company is responsible for performing frequent system checks to ensure that everything is running smoothly.