The amount of information that a company needs to store on a daily basis has never been as large as it is today. In the not so distant past, paperwork took up tables, files, and a lot of space, but it was the way to have some data or a record of something on hand.
With the advent of technology and the internet, companies have more than one option for storing documents, sensitive information, and other materials. Two of these are cloud and on-premise software. But, after all, what is the difference between them and which is the best cost-benefit for your company?
In the following article we will show you the difference between them and some points that need to be considered before choosing one of the two or migrating from one system to the other. Read on!
The main difference
To begin to understand the two models, it is necessary to define each one to map out the main difference between them. In general, software that is hosted in the cloud does not need physical servers inside companies, because the system is hosted in a data processing center, called data centers. These are companies that specialize in renting servers, such as Microsoft Azure and Amazon AWS, and so you need internet access to access the system.
The on-premise system, on the other hand, consists of a physical installation inside the companies, where there is a server and the company’s employees connect internally to it to have access to the system – thus not requiring internet.
Below we have separated the items that further differentiate each software option and that deserve attention in order to choose the one that will best serve the company’s needs.
Scalability
It is common that, over time, the amount of information and data that a system has is increasing. Let’s think about a Customer Relationship Management system, which every day receives new sales interactions, access histories, new products being commercialized, among many other information and data that are generated by the users.
For this reason, the server or machine that is storing the software may become overloaded and thus need more resources that increase the power to support this constant and growing load of data. Whether it is the amount of CPU, RAM, HD storage space, the resources that make up that server will need to undergo a performance upgrade.
Given the scenario above, if the company is using an on-premise system, it would need to purchase a new, more powerful server (or new peripherals, which are auxiliary devices used to send or receive information from the computer) to support the new demand, and then do the entire migration of the system and data to the new server. A joint effort of the procurement team to buy the server and the IT team to perform the migration.
If the company is using a cloud system, such as Labinfy’s cloud mode, usually the company that provides the software takes care of all the management of this process and in a transparent way to the customer, without incurring additional direct and/or indirect costs.
Investment
The value of the investment you make for both implementation models will vary according to different decisions your company makes, such as, for example, what machine sizing you contract and what additional ones you select. In any case, for on-premise implementation, the initial cost is usually higher than cloud software because you will need to invest in:
- a server (which is recommended to be on 24 hours with heavy processing usage)
- adapting the physical room it is in to ensure adequate cooling (since it is common for machines to heat up during use)
- buy equipment that protects and keeps working electro-electronic devices in situations of fluctuation or absence of the power grid (no-break) to avoid power outages in the server (since abrupt shutdowns can corrupt the system data)
- define and configure security ports with access control to prevent anyone from accessing the server directly
- be aware of energy consumption
In the cloud, the company will spend less for the initial investment and can assemble more customized packages that better meet day-to-day needs. In this sense, it also saves on maintenance, since there is no risk of the server breaking down or malfunctioning. If this happens, it is the company that provides the software that must manage the situation and bear the costs.
Practicality
If in the company where you work the work regime is face-to-face and all employees fulfill their roles only at their own workplace, on-premise may well meet your needs and demands. Although in some cases it is possible to access information remotely, the use of a local network or address, for example, can bring gains in performance and access.
On the other hand, if the dynamics of your team’s work happens with each employee in a place or in hybrid form, either from home-office or traveling for work, the cloud system is more practical to ensure access from anywhere, at any time. In this way, employees have more freedom to work from wherever they want, without hindering the fulfillment of daily demands.
In addition, it is important to note that if there are any problems with the on-premise system, an IT professional is needed to provide maintenance and support. In contrast, for cloud systems, you can simply request support from the company that provides the software through dedicated channels.
Security
Finally, one of the most relevant points in this analysis is security. Companies that offer cloud storage services need to constantly improve the security systems of their products to prevent their customers’ information from being accessed and stolen by cybercriminals.
In this sense, encryption in data security and the improvement of the LGPD (General Law of Data Protection) were created. These are ways to keep content safe, secure, and accessible only to people registered by the company.
On the other hand, the on-premise system guarantees greater security against cyber attacks, since access is limited. However, this does not mean that it is free from the action of malicious people. For this reason, it is also necessary that IT professionals implement access restrictions to the internal network, update the operating systems and antivirus regularly, as well as a data backup routine with redundancy.
The best option
As we have seen, the differences between the two systems are important and each one is more adequate for a company’s style and needs. The important thing at the moment of choosing is to make the analysis calmly, so that there are no unwanted expenses and that the information is stored safely.
