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In Depth


ON-PREMISE VS. CLOUD: DIFFERENCES AND SIMILARITIES

--------------------------------------------------------------------------------

By NordLayer, 4 Oct 2022
9 min read



When organizing a modern workplace’s IT setup, a decision must be made on
whether it should be hosted locally or on an external server. There are many
factors to consider before making a move.

Migration to the cloud solutions helps address many modern issues, while legacy
hardware and on-premises applications could be the only viable option for
others. This article will discuss the key differences and similarities between
these two approaches to help you find the best solution for your business case.


WHAT IS ON-PREMISE INFRASTRUCTURE?

On-premise model is a traditional method of IT asset management when all the
resources are held in-house. In these cases, software, hardware, and
infrastructure are used and held in the organization’s physical office.

As everything is running from the confines of your organization, your network
administrators have full control of the infrastructure. No third parties are
involved, which allows tight security mechanisms to keep the data confidential.


ADVANTAGES OF ON-PREMISE SOFTWARE

The biggest advantage of the on-premise model is greater security that stems
from the sole ownership of the IT assets. The data doesn’t leave your ecosystem
as there are no third parties. If your company is subject to regulatory
compliance requirements, this can be a strong plus as you won’t have to worry
whether your partner meets the requirements.

Another benefit is that you’re more independent from internet interruptions. You
can always access and retrieve data manually, as everything is hosted locally.
This would be impossible with cloud setups.


DISADVANTAGES OF ON-PREMISE SOFTWARE

Keeping everything locally isn’t without downsides. First of all, the
maintenance of the whole system falls on your network administrators occupying
their work time. They will have to perform data backups and schedule updates for
used programs.

The second major flaw is that as you rely on physical hardware, you’ll have to
ensure that your infrastructure can handle your workload. You might need to
upgrade your server stack constantly. If your demand grows or shrinks, you could
be paying for server hardware that you’re not even using to full capacity or
straining the infrastructure due to the high number of users — it will be hard
to balance out.


WHAT IS CLOUD COMPUTING?

Cloud computing means relying on a third-party provider to host all your data.
In this case, a third-party provider is a direct supervisor of your
infrastructure maintenance, while businesses only pay a subscription fee for the
resources they use.

The used server hardware components reside in the provider’s data center, which
means the responsibility for data backups and maintenance falls on them. This
frees up businesses and helps them to have better flexibility when upscaling or
downscaling their operations. The service itself is delivered via the internet
and is accessible only remotely.


ADVANTAGES OF CLOUD COMPUTING

One of the biggest advantages of cloud computing services is their instant
provisioning. Third-party providers already have servers configured and ready to
be used. Therefore the whole deployment process is very short. Hardware
requirements are also eliminated as your business receives everything as a
service, so almost no processing is required on the user’s devices.

Cost-wise it’s also much more economical to turn to a cloud provider, as they
free up your IT administrator’s workload by taking on maintenance and
supervision. Public cloud software updates can be pushed instantly, which
creates a leaner and more effective setup. Not to mention that enterprises only
pay for what they’re using, maximizing the value-to-cost ratio.

Employees aren’t tied with on-premises workstations and can access their work
resources remotely. They only need an internet connection, and their data can be
accessed anytime from any part of the world.


DISADVANTAGES OF CLOUD COMPUTING

That said, cloud computing has its fair share of disadvantages. One of the main
ones is that this ties your company with the provider. Therefore, if your cloud
provider has difficulties managing traffic loads, this could affect your
business, leaving you no other option but to wait for it to be resolved.

Another problem with cloud computing is its reliance on the internet as the sole
service delivery method. If the internet connection is interrupted, you could
get cut off from your work resources. This is something that the hackers could
also take advantage of when looking into ways to disrupt your business
operations.

Finally, if your company is subject to various data directives, this means
developing various procedures to ensure that your provider is also taking steps
to comply. Failure of your providers to stay in check with the requirements will
be shared with your company while it has no real control to affect its actions.

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MAIN DIFFERENCES BETWEEN ON-PREMISE AND CLOUD

As you’ve seen from the examples, on-premises and cloud computing provide
different strategies to manage core IT infrastructure. While both approaches aim
to solve the same business issues, their methods fundamentally differ.


UPFRONT COST

On-premise: you’ll have to use in-house dedicated servers, which means you’ll
also have to buy and set them up. This also entails figuring out the best place
for their storage, considering physical security measures, purchasing software
licensing, and outlining maintenance plans.

Cloud: simply put, cloud infrastructure has no upfront costs — you’re only
paying for what you’re using. Investing in the maintenance team is unnecessary
as all these expenses will most likely be included in the cloud provider’s
contract.


SECURITY

On-premise: no external or third-party providers have access to your
confidential data is a big plus security-wise. It’s usually better when various
regulatory compliance requirements apply to your company.

Cloud: Although only the third-party provider and your company can access the
data on paper, the reality might be different. The maintenance of your company’s
security in the cloud falls on the provider completely. In such cases, it’s
always easier to overlook something when you have additional clients lined up.


FLEXIBILITY

On-premise: since you’re dealing with physical servers, flexibility will be very
limited. Upscaling your setup as your organization grows would mean additional
server racks and figuring out physical storage possibilities. This may also be a
bottleneck as your infrastructure might not keep up with the demand from your
customers.

Cloud: within a cloud environment, scalability is as easy as flicking a switch.
You can align with the cloud service provider to allocate more servers if you
need more. Even if you need to shrink your operations, it will be easier, and
you’ll likely pay less for your subscription. To top it off, this switch only
takes a few moments, so it’s easy to complete this transition and move on with
business operations.


REQUIRED INVOLVEMENT

On-premise: not only will you need to have in-house staff to deploy everything,
but the infrastructure will also require periodic maintenance. Your staff must
be experts in their field to set up everything correctly. Therefore not only
will you have to deal with the procurement of server hardware, but you’ll also
need a technical team available 24/7 to respond to emergencies.

Cloud: as the burden of setup and maintenance is passed on to the third-party
provider. There’s little involvement required from the client’s side. You don’t
have to maintain an active technical team focused solely on maintenance. In
addition, your technical department can focus on various other business areas as
infrastructure is managed externally.


BANDWIDTH PERFORMANCE

On-premise: if you want to improve bandwidth from your local servers, you’ll
need to look into upgrades for existing ones or buy additional units. If your
remote employees want to connect to your servers, they may experience slowdowns
due to the single point of presence on the network.

Cloud: if you’re unsatisfied with the bandwidth, you may work with your provider
to rent higher-performance servers. In addition, if your provider oversees
multiple data centers, it can likely offer you multiple points of presence to
connect to, making your connections flow easier.


DAMAGE CONTROL

On-premise: critical system failures and data breaches are possible for any
system; in this case, the responsibility rests solely on your part. Another
challenge is data recovery, especially if your local backup options only mirror
data from one server to another. That way, malware could wipe out your total
database.

Cloud: the key difference is that cloud infrastructure heavily relies on a
virtual environment. This means that data can be recovered from virtualizations
instantly, so it provides more options. On the flip side, there could be various
gaps in the data center management system, which the hackers could also exploit,
so there’s no option without flaws.


SIMILARITIES BETWEEN ON-PREMISE AND CLOUD

If we look at both options from the functionality perspective, both address the
same business needs. They even go as far as having some similarities.


WORKLOAD DISTRIBUTION

On-premise setup is really a private cloud. Workloads can be distributed using
private and public infrastructure with minimal performance loss. While
on-premise infrastructure lacks on-demand service availability and is slower
regarding database changes, it can perform the same cloud-computing
functionalities. An on-premises setup is a good place to test workloads before
migrating them to the cloud solutions.


IDENTICAL FOUNDATIONS

Structurally, servers in on-premise setups and cloud infrastructure are composed
of the same components. You’ll find the operating system and application
programming interfaces in both cases. Therefore the difference is just the scale
and access method. Cloud servers will only have a management platform as an
access mediator.


VIRTUALIZATIONS

Some good practices from cloud infrastructures are passed down to on-premises
setups. One of them would be virtual machines — they significantly contribute
when facilitating data center management. However, as most network
administrators have found, they can also be applied on-premises to separate
workloads and better manage what’s happening on the server.


AUTOMATIONS

Repetitive tasks are the bread and butter of IT network administrators.
Therefore, they rely on a handful of automation tools to make server management
easier and their work easier. This is common for both on-premises and cloud
options, as it makes workload deployments much easier and more effective.


ON-PREMISE VS. CLOUD - HOW TO CHOOSE THE RIGHT ONE?

While both options have their strengths and weaknesses, the best approach for
your company can depend on several factors. For instance, if you have already
invested funds into setting up an in-house server stack, it wouldn’t make too
much sense to discard it and go with the cloud solutions. You have to evaluate
your strengths and weaknesses critically.

On the other hand, if you’re a startup and are highly focused on growth, then in
that case cloud approach would be a much better starting point. That way, you
can maximize the ratio between the money spent and the value gained. Plus,
instant deployment time would also be very beneficial.

However, if your businesses are subject to large amounts of confidential data,
you should consider all the options. Ensuring compliance with local laws can be
difficult, so don’t risk one of your most important assets. Don’t forget that
using hybrid cloud options is also a viable strategy.


HOW CAN NORDLAYER HELP?

NordLayer provides tools for better data security within the Secure Service Edge
framework. It provides site-to-site capabilities extending your network and
creating a channel to deliver network security point solutions.

Our adaptive network security solution easily integrates with your existing
cloud and on-premises infrastructure, helping to achieve greater security and
data privacy and facilitate remote working. NordLayer is an active collaborator
when tackling modern cybersecurity issues burdening businesses.

Get in touch with our team and discover the easy route to increase your cloud
data security wherever you’re hosting it.

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Contents

What is on-premise infrastructure?What is cloud computing?Main differences
between on-premise and cloudSimilarities between on-premise and cloudOn-premise
vs. cloud - how to choose the right one?How can NordLayer help?


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© 2023 Nord Security. All Rights Reserved

NordLayer

PricingDownloadsFeaturesLog inCareersPrivacy policyTerms of servicesData
processing agreementPress AreaRelease NotesStatus
Resources

Decision Maker’s KitCybersecurity Learning CenterBlogGlobal Remote Work
IndexHelp Center
Downloads

iOSAndroidmacOSWindowsLinux
Solutions

SASEZero TrustHybrid Work SecurityRegulatory ComplianceNetwork SecurityNetwork
Access ControlRemote Access VPNBusiness VPNCloud VPNIdentity and Access
ManagementThreat PreventionSecure Remote AccessSSESaaS SecuritySecure Web
Gateway
Features

Site-to-Site VPNDedicated IPDNS FilteringVirtual Private GatewaysShared
GatewaysNordlynxNetwork SegmentationSmart Remote AccessCustom DNS
Partnerships

AffiliatesBecome a partner
Nord Family of Products

Nord SecurityNordVPNNordLockerNordPass

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For media inquiries, please contact - press@nordlayer.com

Have a question? Ask our experts at - support@nordlayer.com



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