On-premise And Cloud Computing Software Comparison

You choose over on-premise and cloud computing software to manage the whole activities of your organization. Before deciding which option to work with, you’d better understand the definition, benefits, and features of these solutions.

More importantly, it would be better if you know the differences between the two technologies. Then, you can select the most appropriate solution for your organization. Let’s take a look at this article to learn more about on-premise and cloud computing software.

The Definitions Of On-premise And Cloud Computing Software

The simple definition of on-premise software is software being installed and running on on-premises computers. On the other hand, cloud computing software is the one delivering activities/ tasks on the Internet. 

On-premise Vs. Cloud Computing Software Comparison

On-premise Software


The lower total cost of ownership – Since you are only paying for your user licenses once, an on-premise solution can have a lower Total Cost of Ownership (TCO) than a cloud system.

Complete control – If you own the on-premise software, you can control data, hardware, and software platforms completely. Moreover, you can decide on the upgrades, configuration, and system changes.

Stable connectivity – As on-premise systems can run offline without the Internet, you can be free from electricity loss and internet disconnectivity.


Huge capital expenditure – On-premise systems usually require large upfront purchases which means capital expenditure (CapEx) is often required. You also need to count maintenance costs into the budget to secure functionality and support upgrades.

Bài viết liên quan:  A Brief Introduction To Zoho Recruit

Regular maintenance requirement – With an on-premise system, you are responsible for maintaining server hardware and software, data backups, storage, and disaster recovery. This can be an issue for smaller companies that have limited budgets and technical resources.

Longer implementation time – You can take more time to implement on-premise deployment because of the time to complete installations on each laptop/computer and server.

Cloud Computing Software


Easy access – You can access the cloud applications anytime and anywhere via a web browser with your devices connected to the Internet.

Affordable cost – Unlike the on-premise software, there is no upfront investment to deploy the cloud computing software. Instead, you have to pay for a regular subscription or an operating expense (OpEx). 

Low maintenance – You don’t need to maintain the software regularly thanks to the services offered by the cloud providers. The service providers will handle any upgrades, configurations that save you a lot of time and effort. 

Top security – The data stays safer in the cloud than on a server in the office. There will be no worries on data theft.

Rapid deployment – In comparison to on-premise software, cloud-based software deployment requires less time to complete because it is deployed over the Internet. 

Scalable system – The cloud technologies are easier to scale up as your businesses grow. Consequently, you can upgrade the subscription plan for more features or degrade it to scale back to the old licenses.


Long-term costs – The cloud solutions may require lower upfront costs; however, they are more expensive in the long run. You may need to pay for a subscription annually to constantly use the systems. 

Bài viết liên quan:  Get motivated with 5 successful digital transformation companies

Limited customization – Although cloud software is configurable, you may not deal with complicated development.

Unstable connectivity – If you encounter unstable Internet connectivity or electric loss, your work with cloud computing systems will stop immediately. These accidents can reduce your work process and productivity. 

Final Thoughts

You now know the definition as well as the differences between on-premise and cloud computing software. The pros of the on-premise software may be the cons of the cloud computing software. 

Please wait for the next article on the series of cloud computing to answer why cloud-based systems are becoming popular!

SmartOSC DX là đơn vị cung cấp chuyển đổi số hàng đầu tại Việt Nam. Là động cơ thúc đẩy sự thành công trong quá trình chuyển đổi số của Baemin, Daikin hay VDI, bộ giải pháp của chúng tôi được tạo ra để phát hy tối đa giá trị của từng doanh nghiệp trong kỉ nguyên số

D - UNCOVER WHAT drive us

1 Comment

Để lại bình luận tại đây

Your email address will not be published. Required fields are marked *

type your search