On-premise or Cloud Hosting: What is the best option for you?
How does your business store their software?
On-premise or cloud hosting, what is the best option for you?
On-premise hosting refers to storing your software on infrastructure that is installed locally, on a company’s own computers and servers. Cloud hosting is the process of hosting your software offsite on a vendor’s server and accessed online.
VCare offers the option of hosting your VCare System in our cloud-based system, but you can also choose to host this yourself. Choosing between on-premises or cloud hosting can be a huge decision for companies. Time, money, security needs and more need to be carefully considered when selecting the option that’s best for your facility.
Cloud hosting is becoming more popular than ever before but there are several reasons some businesses still opt for an on-premise system. Understanding the pros and cons of both options supports you in making an informed decision for your facility.
We have compiled a list of the key elements of both On-premise and Cloud Hosting which will help you in the decision-making process.
On-Premise Hosting
On-premise hosting refers to a system that is installed locally, on a company’s own computers and servers.
Data Security
Companies with sensitive information opt for this method solely based on this benefit. In an on-premise environment, the company has full control of all data and they are aware of exactly where it is being housed, how secure their IT infrastructures are and who has access to it. In order for this to be a significant benefit, companies need to be confident in their own ability to maintain high standards and security protocols themselves.
Cost
On-premise usually requires an initial up-front cost, which can be a big investment for SMEs. While this is usually not a problem for larger companies, the risk of a large payment can be too high for smaller companies.
On-premise also requires companies to invest in the hardware required and specialised IT employees. A company that chooses on-premise is responsible for maintenance, power-consumption and replacement of servers. While these costs can add up, there is no set, continuous amount which entices some companies who would rather not pay a subscription rate that usually comes with cloud hosting.
Customisation
On-premise gives companies more control over the implementation process although this process can take a significantly longer time than Cloud-hosting if it requires setting up from scratch.
Despite a slower implementation, on-premise allows for greater customisation. Many companies have specific needs and requirements so the ability to customise the on-premise system is crucial.
Cloud Hosting
Cloud hosting is the process of hosting your software offsite on a vendor’s server and accessed online.
Data Security
Company data is often located offsite so many worry that security is not as tight as if they used an on-premise method of data storage. Not having the ability to control security can be a huge aspect of cloud hosting.
Another issue with using online cloud hosting is the need for internet, for companies located in more remote areas the concern of loss of internet is something that needs to be considered as well as the availability of WIFI. Despite these concerns, reputable vendors have robust systems with strict procedures to keep data safe. This can be a benefit for companies, as they can avoid the administration and costs that come with organizing strict security and procedures on their own premises.
Despite a slower implementation, on-premise allows for greater customisation. Many companies have specific needs and requirements so the ability to customise the on-premise system is crucial.
Cost
The usually low cost is the main benefit to businesses looking at investing in cloud hosting. Companies that choose cloud hosting only need to pay for the resources they use and not the maintenance, and cost of setting up and purchasing equipment that comes with the on-premise option. Cloud hosting costs usually come in the form of a subscription model so are predictable and usually a lot lower than paying an initial upfront cost. When considering the cost it’s important for companies to look at the long-term expenditure because cloud hosting can result in spending more money over time, depending on the use and timeframe.
Customisation
Generally, third-party vendors hosting the system already have the resources in place so that the implementation time it takes to begin hosting a new companies’ data is very short. This quick implementation is a huge benefit to companies who wanting to get they systems up and running quickly.
With cloud hosting, updates are usually automatic, so the software remains current and these updates don’t come at the cost of the company but rather the third-party vendor. While companies can work with the cloud hosting vendors to try and customise systems to meet their needs, overall cloud hosting is less customisable than on-premise.
Overall, there are many benefits of both on-premise and cloud hosting that companies need to consider when making the decision of what system to go with. On-premise is more suited to larger companies who require a high level of security, greater customisation and with higher budgets.
Cloud hosting is suited more to companies seeking lower upfront costs, quick implementation and would prefer to reduce the ongoing maintenance costs and administration required with on-premise. VCare offers both options when clients sign up, but with the security and procedures being extremely robust within the VCare system, many choose this option for their data.
