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Hosted or On-Premise: The Dilemma

Businesses are often faced with the dilemma whether they should go for a hosted or an on-premise solution. There is really no right or wrong answer but companies need to assess their business needs and infrastructure before taking a decision. The fundamental point is that not all solutions work best in the Cloud or on-premise and the choice often requires a trade between security and costs to optimize returns.

There are advantages and disadvantages with both platforms and these are subject to the type of software/service under consideration. The table below outlines the advantages and disadvantages of the hosted and on-premise delivery model.
On-premise Online
Control over all system/data No software licensing costs
Corporate data is stored/handled internally No new infrastructure requirements eg servers
Dedicated IT staff for maintenance/support Low cost for services
Initial investment is high but pays off over time Third parties are doing hard work

  • ON PREMISE

    An on premise solution means that all hardware is installed at your physical location. With an on-premise Telecommunication or IT solution, corporate data is stored internally and you have control over your systems and data.

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  • PRIVATE CLOUD

    Also called an internal cloud or enterprise cloud, this also offers activities and functions "as a service" but is deployed over a company intranet or hosted datacenter. This is private product for a company or organization offering advance security and highly available or fault tolerant solutions not possible in a public cloud. In this scenario, the private cloud owner shares few, if any, resources with other organizations. Hence, multi-tenancy is not an issue.

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  • PUBLIC CLOUD

    Also known as a shared cloud, such services are provided "as a service" over the Internet with little or no control over the underlying technology infrastructure. This cloud is appealing to many decision-makers as it reduces complexity and long lead times in testing and deploying new products. It is generally cheaper, too.

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