19 June 2023

On-premise and on-cloud: what is the difference and what to choose

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On-premise is a method of deploying software or applications that are installed and run on the customer's own servers and infrastructure. On-cloud (cloud) solutions assume that the software is accessed via third party servers.

In this article, we will look at the differences between on-premise and on-cloud solutions, their advantages and disadvantages.

Article content:

1. What is an on-premise solution. Pros and cons of on-premise solutions

2. What is an on-cloud solution. Pros and cons of on-cloud solutions

3. Corporate messenger on its servers or in the cloud. What to choose

What is an on-premise solution. Pros and cons of on-premise solutions

On-premise (also “on-premises” and “on-prem”) is translated from English as “local”. An on-premises solution refers to a software or technology infrastructure that is installed and maintained on a company's own servers or equipment. On-premises solutions are considered more secure because the company has full control over the infrastructure, but they can also be more costly and time-consuming to manage compared to cloud or web solutions.

Pros of an on-premise solution

+Control

With on-premises solutions, companies have complete control over their sensitive data and infrastructure and can customize the system to suit their needs. For example, corporate information transmitted in third-party messengers (such as Telegram and WhatsApp) can be used by competitors or attackers, while data in eXpress (in the “on-premise” deployment model) is stored locally on your servers without the risk of leakage and transfer to a third party .

+Security

Companies for which information security is especially important often choose local solutions, because it is the ability to implement your own security protocols and monitoring measures to protect corporate information. Company administrators are responsible for setting up firewalls and anti-virus software, managing user access and delimiting their rights, and protecting against cyber attacks. These and other actions help keep your local infrastructure and sensitive data safe and free from dependency on the good faith of third-party providers.

+Long term cost

In the long run, on-premises solutions can be more cost-effective because they don't require ongoing subscription fees (which can be significant depending on the size of the business). Companies only need to invest in hardware and software upfront and can continue to use them for years.


Cons of an on-premise solution

-High initial costs

On-premises solutions require significant investments in hardware and infrastructure, and require staffing to manage the infrastructure.

-Maintenance and renewal costs

Companies are solely responsible for maintaining and updating their on-premise solutions, which may require trained staff.

-Limited Flexibility

On-premise solutions typically cannot be easily adapted to changing business needs. They are difficult to scale and require organizations to invest in additional hardware and infrastructure. If the system is geo-distributed, each region needs a team that will support data centers and quickly solve problems in case of problems.

What is an on-cloud solution. Pros and cons of on-cloud solutions

A cloud solution (eng. on-cloud) is a software or service provided over the Internet or a network of remote servers. This solution allows companies to access and use the software or service from anywhere with an internet connection, as data and applications are hosted on remote servers rather than on the user's own computer or on local servers.

Cloud solutions often provide scalability, availability, and cost benefits because they do not require hardware or software infrastructure support. Examples include such popular cloud solutions as 1C Cloud, Trello, Figma, Bitrix24, etc.

Pros of an on-cloud solution

+Accessibility

Thanks to cloud solutions, data and applications can be accessed from anywhere in the world, as long as there is an Internet connection. This provides significant flexibility for businesses and their employees, especially those who work remotely or in the field.

+Low initial investment

Cloud solutions are often more cost-effective than traditional on-premises solutions. This is because cloud providers offer pricing models and subscription plans that allow businesses to pay only for the resources they use. At the same time, you do not need to immediately invest heavily in IT infrastructure and equipment.

+Scalable

The cloud service provider can increase the amount of resources provided depending on the needs of the client, which makes this option ideal for small companies that plan to expand their operations over time.


Cons of an on-cloud solution

-Security

Storing sensitive data on a third-party server poses a corporate security risk. An unauthorized hacker can steal sensitive information such as personal data, intellectual property, and financial information.

-Higher costs in the long run

Cloud solutions are often provided on a subscription model, and the service provider may unilaterally increase the subscription fee. In addition, there may be additional costs, such as data migration or integration fees.

-Data Loss

Data stored in the cloud can be lost due to hardware failure, software bugs, or natural disasters. Such incidents can lead to permanent data loss if backup and recovery mechanisms are not put in place.

-Dependence on cloud service provider

Companies using cloud solutions depend on the provider for service, updates, and customer support. If the provider goes out of business or is unable to provide quality services, this can lead to significant disruption to the company.

Corporate messenger on its servers or in the cloud. What is better to choose

On-premises solutions are expensive to deploy and maintain, and often not justified in small businesses. However, for large companies and organizations in which information security, as well as the safety of confidential data are a priority (these include banks, financial institutions, manufacturing enterprises, departments, military and defense enterprises, etc.), mandatory use of on- premium solutions.

This requirement certainly applies to corporate communications as well. the exchange of information between employees should take place in a secure environment that is fully under the control of the customer. At the same time, the platform must comply with the requirements of the law regarding the transfer of personal data and financial information. The use of public messengers such as WhatsApp is not allowed here.

Deployment models of eXpress corporate messenger include both cloud and on-premise solutions. For small and medium-sized businesses, the SaaS delivery format is optimal when the deployment takes place on the servers of a reliable Russian cloud service provider. For large companies and organizations from "sensitive" sectors of the economy, a corporate messenger on their servers, or an on-premise solution is preferable.

An on-premise solution is generally considered more secure than a cloud solution. All communications are stored on the company's own servers, which means that the company has full control over who has access to them. Depending on the industry, a company may be subject to regulatory requirements that govern how sensitive and personal information is stored and protected. Messenger on its servers can give a company more ability to meet industry-standard data storage and processing requirements.

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