Thursday, 2 August 2018

On Premise Versus Cloud-Based Software

I've heard arguments for both on-premise and cloud-based software solutions. Each side makes convincing arguments, however, the decision should be based a number of factors. It is clear to me that one type of deployment does not meet all needs. The top-down items that should be considered typically fall into one of 6 categories; security requirements, internal IT support to administrate a solution, customization, initial capital expense, ongoing cost per head and integration to third party software.

Security

Does your company have a specific need to maintain the highest level of security? Is your firm warehousing confidential information, personal credit information, healthcare information or other intellectual property? I find that some cloud base offerings place restrictions and schedules on data access and maintenance that may make it troublesome for some business requirements. If high security is paramount to your business, on premise is the easiest (not the cheapest) to secure.

Internal IT Staff

On premise solutions will require on staff technical expertise to administrate, manage and support. How many resources will your firm need to manage the solution? Cloud-based solutions mitigate the need for full time IT staff.

Customization

Many cloud-based solutions are offered in a multi-tenant environment meaning that customizations that your firm may need might not be suitable for a multi-tenant scenario. Private PODs or single instance deployments at a cloud service provider may be suitable for your needs. Private PODs can be costly therefore it maybe more economical to deploy on premise to accommodate customization.

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