What is on-premise?
In the constantly evolving world of IT, companies are repeatedly faced with the following question: on-premises or cloud computing? But what exactly does "on-premises" mean and how does it differ from cloud computing? We explain.
What does on-premise mean?
The term "on-premise", or "on-prem" for short, translates as "in your own environment". As the translation suggests, on-premise refers to a licensing and usage model for software in which companies run the software on their own hardware. Companies therefore run the software in their own data centres or on rented servers. With cloud solutions, software applications are provided as a service via the internet and managed by external providers. For years, on-premise was considered the proven standard and is still used today due to its numerous advantages.
What are the advantages of on-premise solutions?
The biggest advantage is obvious: companies retain control over their data and systems. Local installation allows them to implement security policies according to their own requirements. Companies with stricter data protection requirements or sensitive data in particular benefit from this type of usage model.
In addition, on-premise solutions offer full cost control, as companies are not tied to ongoing subscriptions, as is the case with many cloud offerings. Instead of paying monthly fees, companies can plan their investments in advance and make them as needed with on-premise solutions.
Nevertheless, the use of on-premise solutions comes with a number of challenges. Operating and maintaining the hardware and software requires expensive resources, such as skilled personnel and time. Companies must be able to perform regular updates to ensure the security and performance of their systems.
Another disadvantage of on-premise software is the issue of scalability. Most companies plan their IT resources in advance and often have to purchase additional hardware and software to support growth. This results in high initial investments and limited flexibility, especially when the company's requirements change.
What distinguishes on-premise from cloud computing?
Cloud computing offers an alternative approach to the provision of IT resources. A cloud solution enables companies to scale their IT infrastructure more flexibly and allocate resources according to demand. As the name "Software as a Service", or SaaS for short, suggests, cloud computing involves the procurement of software as a service. This eliminates the need for companies to worry about the operation and maintenance of hardware and software, as this is taken care of by the cloud provider. This means that updates are installed regularly in the background and any security vulnerabilities that are discovered are closed without additional effort.
The topic of security is always a hotly debated issue. While on-premise data remains in your own system, SaaS data is transferred to the provider's data centre. Depending on the expertise and IT personnel available within your own company, cloud providers may have more extensive know-how and thus be able to offer higher and more comprehensive protection. In this context, it is crucial to select a particularly trustworthy provider who treats data protection as a top priority.
Cloud solutions are typically sold via subscription models, which means that high running costs are to be expected. On-premise solutions, on the other hand, involve a one-off purchase price and offer permanent rights of use in return.
An optimal strategy for companies often consists of combining on-premise and cloud solutions. This enables companies to manage resources in a future-proof manner while operating economically. Locally installed software offers strategic advantages, while cloud solutions provide scalability and flexibility. The combination allows companies to leverage the respective advantages and make individual adjustments – particularly attractive for medium-sized companies that want to operate in a future-oriented manner.
Would you like to reduce your IT costs without compromising on the quality of your software? Then Soft & Cloud is the best partner for you. We offer original Microsoft licences for everything from Microsoft Office and Microsoft Server to the appropriate CALs – audit-proof and TÜV IT-certified.
Get a non-binding consultation now.
