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Cloud vs on-premises: Why Cloud-based software is best for your business

by Campbell McLeish on

With a widespread adoption of Cloud-based software across the world, more and more businesses have started to shift, or have already shifted from their on-premises solutions. In fact, 50% of enterprises spend more than £1 million on Cloud services annually, and the Cloud service market is expected to reach £600 billion by 2025 worldwide.

Now looking at these figures, you may be wondering ‘What is the difference between Cloud and on-premises?’, ‘Should I make the change?’ and ‘What is best for my business?’. If so, you’ve come to the right place.

Here, we compare Cloud vs on-premises solutions and explore what is best for your business.

The main difference between Cloud and on-premises software

Emphasised in their names, the biggest difference between Cloud and on-premises software is where they reside. While on-premises software is installed locally on your business’ IT equipment and servers, Cloud-based software is hosted on the supplier's server and accessed via the web using an internet connection.  

Factors such as accessibility, scalability, and affordability all need to be considered when making your decision, as well as things like on-going support, updates, and implementation. Let’s take a look at the pros and cons of each.

Cloud software advantages

  • Accessibility – Access your applications from anywhere in the world, and at any time via a web browser (providing you have an internet connection).
  • Scalability – Cloud software provides excellent scalability. With the option to easily add and scale back licenses, you are able to meet demands and pay for exactly what is needed.
  • Reduced energy costs – When switching from on-premises to the Cloud, you no longer need to power its servers or maintain the environment. This results in less energy usage, reducing the amount on your energy bills.
  • Worry-free – Due to Cloud-based software being hosted by the vendor, you do not need to worry about any software or hardware maintenance. Compatibility, upgrades, and updates are all taken care of by the Cloud service provider.

Potential Cloud software drawbacks

  • Connectivity – In order to stay connected and productive, Cloud solutions require reliable internet access.

On-premises advantages

  • Control – Seeing that the software, hardware, and data being used is all yours, you decide on the system changes, upgrades, and configuration.
  • Availability – Not having to rely on internet connectivity to access your software means on-premises solutions are available every time you need.

Potential on-premises drawbacks

  • Maintenance – When opting for an on-premises system, you are responsible for maintaining server hardware, software, and data backups as well as storage and disaster recovery. This can be problematic for smaller companies especially, due to limited budgets and technical resource.
  • Capital expenditure-. You need to think about maintenance costs to ensure sufficient support and functionality upgrades.

Is Cloud better than on-premises?

For most businesses, Cloud is the way forward. Mainly due to its flexibility, reliability, and accessibility. Cloud-based software removes the hassle that comes with updating and maintaining on-premises systems, allowing your business to invest time and money into fulfilling tasks that really matter to your business.

In short, Cloud-based solutions are known to free up valuable time and support businesses looking to grow.

Cloud vs on-premises: which is best for my business?

When it comes to making a final decision, there is no right or wrong answer. It all boils down to what is best for your business. After all, every business is unique and will have different requirements impacting the choice of deployment strategy.

Whether you are seeking further advice on Cloud vs on-premises, or want to speak to an expert about your deployment project, contact us at Nolan Business Solutions today. With over 30 years’ experience, paired with specialist knowledge in ERP, CRM, and other software solutions, we are able to provide the very best for your business. Reach us by email sales@nolanbuisnesssolutions.co.uk or by phone on 01252 811 663 – we would love to support your growth.