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What is On-Premise?
In the constantly evolving world of IT, companies are constantly faced with the following question: on-premise or cloud computing? But what exactly is "on-premise" and how does it differ from cloud computing? We explain.
What does on-premise mean?
The term on-premise, or on-prem for short, means something like "in your own environment". As the translation suggests, on-premise refers to a license and usage model for software in which companies operate the software on their own hardware. This means that companies run the software in their own data centers 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. The local installation allows them to implement security guidelines 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 the possibility of full cost control, as companies are not tied to ongoing subscriptions, as is the case with many cloud offerings. Instead of paying monthly fees, on-premise solutions allow companies to plan their investments in advance and make them as needed.
Nevertheless, the use of on-premise solutions comes with some challenges. Operating and maintaining the hardware and software requires expensive resources such as skilled staff and time. For example, companies must be able to carry out regular updates to ensure the security and performance of their systems.
Another disadvantage of on-premise software is the scalability aspect. Most companies plan their IT resources in advance and often need 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 is the difference between on-premise and cloud computing?
Cloud computing offers an alternative approach to the provision of IT resources. A cloud solution allows companies to scale their IT infrastructure more flexibly and provide resources as required. 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 regularly installed in the background and any security gaps that are discovered are closed without any additional effort.
Security is always a hot topic of discussion. While on-premise data remains in your own system, SaaS data is transferred to the provider's data center. Depending on the existing expertise and IT staff in your own company, it could be that cloud providers have extended know-how and can therefore offer higher and more comprehensive protection. In this context, it is crucial to choose a particularly trustworthy provider that 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, are associated with a one-off purchase price and offer a permanent right of use in return.
An optimal strategy for companies is often a combination of on-premise and cloud solutions. This enables companies to manage resources in a future-proof manner and operate economically at the same time. Locally installed software offers strategic advantages, while cloud solutions offer scalability and flexibility. The combination makes it possible to take advantage of the respective benefits and make individual adjustments - particularly attractive for medium-sized companies that want to act in a future-oriented manner.
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