Cloud vs On-Premise
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Among the many debates in the business world, the cloud vs on-premise battle seems to be ever-lasting with the odds gradually tilting in favour of the cloud.

Over 64% of SMBs are already on the cloud, using at least 1 application. The average number of applications is 3. Moreover, almost 80% of businesses are warming up to the idea of the cloud and want to purchase cloud solutions in the next 3 years.

2019 2020 2021 2022 2023
Cloud Business Process Services (BPaaS) 45,212 44,741 47,521 50,336 65,145
Cloud Application Infrastructure Services (PaaS) 37,512 43,823 55,486 68,964 136,408
Cloud Application Services (SaaS) 102,064 101,480 117,773 138,261 195,208
Cloud Management and Security Services 12,836 14,880 17,001 19,934 41,675
Cloud System Infrastructure Services (IaaS) 44,457 51,421 65,264 82,225 150,254
Desktop as a Service (DaaS) 616 1,204 1,945 2,542 3,104
Total Market 242,696 257,549 304,990 362,263 591,794

Table: Worldwide Public Cloud Services End-User Spending Forecast (Millions of U.S. Dollars)

BPaaS = business process as a service; IaaS = infrastructure as a service; PaaS = platform as a service; SaaS = software as a service
Note: Totals may not add up due to rounding.

Source: Gartner (October 2022)

These numbers speak volumes, but there’s always one lingering question – why are they taking so much time? Are there pitfalls to using cloud vs on-premise? Is the latter still the better choice? Are there any concerns holding organizations back even though the cloud is becoming more popular today? Is the data secure on the cloud?

We have conducted a comparative study to understand the key difference between on-premise and cloud. This study will answer all the aforementioned questions.

Also read: Digital Transformation Demystified !!

Cloud Deployment

Cloud computing is the on-demand availability of computer system resources, especially data storage (cloud storage) and computing power, without direct active management by the user. The data is stored on the cloud (public, private, or hybrid), and the vendor handles the security and uptime. Businesses do not need to spend on additional infrastructure, resources, or data privacy. It is a service that takes care of it all in one shot. You also do not need physical space because everything is on the public cloud.

It is nothing new to claim that cloud computing has gained much popularity in recent years since it helps businesses take advantage of several benefits, from saving money, resources, and space to higher flexibility for expansion.

One of the highlights is that you can get cloud computing solutions specific to your business needs. You won’t be paying extra for space or services that you do not use.

On-Premise Deployment

The name says it all! On-premise software is literally present on a company’s premises. It is installed within the office and uses the business’ servers. Everything related to this software, from installation to maintenance and everything in between, is in the hands of the office which gives better ownership than the cloud computing infrastructure. It requires quite a lot of infrastructure and additional resources. A complete ownership is the biggest attraction in this case despite the inflated cost.

On-Premise deployment cost effectiveness illustration

Cloud vs On-Premise – Pros and Cons

To understand these options further, reviewing all the pros and cons is important. These are the points that will weigh in heavily during the decision-making process.

1. Cost

On-premise solutions will force you to spend a significant amount of money. Since you are building a system from scratch, every step will require investment. Plus, there are ongoing operational costs and maintenance costs. Cloud platforms are cost-effective. Besides a subscription fee, you don’t have to worry about other costs.

This predictability, teamed with the fact that upgrades, backups, and support are a part of the monthly package, makes cloud storage the best option there can be!

Bonus: Public cloud servers will not burn a hole in your pocket with long electricity bills. On-premise servers will.

2. Security

Security is the number 2 criterion in the list of priorities, closely following costs. Around 47% of IT experts say so. All other factors come after these 2 primary concerns. On the face of it, it may seem like on-premise is a better choice but that’s not really the truth.

On-premise will not be safe unless the organization has proper protocols to maintain data security and the required resources. Infrastructure malfunction is another giant concern in this case. With the cloud, you don’t have to worry about additional costs or malfunctions because the vendor protects privacy and security. As long as you choose a reliable vendor whose services are compliant with the leading industry security standards like ISO 27001 and SOC, you won’t have to worry about data security. Getting your on-premise data centers certified for these standards can cost organizations significant time and money.

This is why we reiterate that data is safer on the cloud than on your dedicated server.

3. Uptime

Software hosted on reliable cloud services certified for their Uptime can provide almost uninterrupted services compared to on-premise deployments. Getting certified for uptime for an on-premise setup can significantly cost infrastructure and audit costs.

4. Latency

One of the advantages of on-premise deployment is its low latency. This is because the storage is within the premises itself. Geographic distance plays a role in increased latency, but with technologies like edge caching and CDN cloud vendors can match the latency to that with on-premise installation. Businesses may also choose cloud services that have data centres close to their location. Most big cloud service providers have data centres worldwide and can easily offer this choice.

5. Control

Compared to the public cloud, on-premise deployment gives you more control over the overall infrastructure, including your data. However, private and hybrid clouds solve this problem considerably, where you can get the control you need while reaping the benefits of cloud hosting.

6. Accessibility

One of the biggest pitfalls of on-premise data storage is the lack of mobility. You cannot access applications once you are out of the server’s location (your office). Plus, accessibility may be confined to a limited number of devices only. Cloud platforms, on the other hand, make the world your oyster! You can access anything from anywhere, regardless of the device you use. This mobility makes it a top choice for all types of organizations.

7. Deployability

Deployment of on-premise servers requires days. This is because the applications must be installed on every device separately along with the physical server itself. Cloud deployment never takes more than a few hours and can happen remotely. All you need is an internet connection. Because cloud software is hosted for you, you don’t need to stress about the maintenance of your software or the hardware it sits on. Compatibility and upgrades are taken care of by the cloud vendor.

8. Scalability

If you require more storage space or a few new features, with the on-premise setup, you will have to go through the whole compliance and installation process once again. With the cloud, it is a matter of hours again. The service provider will take care of changing needs easily.

This works even on the flipside when you want to reduce the usage. On-premise, that’s not really possible. With the cloud, it can happen in a jiffy.

Cloud vs On-Premise Comparison Chart

Now, let’s consolidate all the on-premise vs. cloud differences under one side heading for easy comparison.

Cloud vs On-Premise
Feature Cloud On-Premise
Security Reliable Malfunction risks
Cost Affordable Expensive
Uptime High Low
Latency Low with the use of right technology Low
Control Less More
Scalability Unlimited Difficult
Accessibility High Extremely limited

How to decide – Cloud vs On-Premise

Upon considering all these factors, it will be clear that the cloud is the better choice for all sizes of organizations. Over the years, it has grown to accommodate various requirements and tackled all the concerns wonderfully, making it a viable and affordable option for all.

So, any organization can go with the cloud without batting an eye!

Why is Cloud better than On-Premise?

Let’s underscore our entire comparison and determine why one must choose the cloud. It satisfies the most important criteria:

  • Cost Affordability
  • Security
  • Anywhere and anytime access
  • Worry-free IT
  • Fast deployment
  • Scalability and flexibility
  • Lower energy costs
  • Zero hassle
  • Most reliable platforms offer 99% uptime

Having said that, we advise you to choose based on your priorities.


The forecast for cloud hosting is very bright. It is proof that cloud solutions are here to stay, and for a good reason too.

Quixy offers services both on the cloud and on-premise, depending on the need and size of organizations. For a quick demo or further details, please feel free to get in touch. We look forward to connecting with you.

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