Cloud vs On-premise

The debate over cloud vs on-premise software is still a hot topic. Comparing the two is a bit like the apples to oranges comparison cliché. However, there is in fact  no straight answer on which is more efficient. The answer depends on the system under consideration and the factors at play specific to your business.

An on-premise solution is hosted on your own server or data centre. People used to get on-premise software from a CD or flash stick. On-premise software used to be considered cheaper than the cost of a cloud subscription over time but it is effectively a capital investment and likely to also have ongoing annual maintenance. You buy it and you’re responsible for it. Cloud CRM functions more like an operating expense and is accessed through the internet. You’re essentially “renting” the software and its supporting infrastructure as a service; hence the correct technical term for it is “Software as a Service” (SaaS).Your data is hosted on your provider’s data centre and they handle your overall IT management for you.

When comparing the two deployment options, the following points should be taken into consideration when making a decision to best suit your business:

Ultimately, cloud service offerings can have substantial advantages. For those with limited capital expense budgets and difficulty predicting future usage and business needs, SaaS models can be liberating. It helps them to reduce operating expenses and offer services that compete with larger organizations – while freeing up staff to focus on revenue-generating activities.