Cloud vs On Premises: Why Cloud-Based Software Is Best

By the team at Elevate2 | 30 Aug 2021
4 min read

More businesses have started to shift to a cloud-based software solution, here we compare cloud vs on premises to see what is best for your business

There has been a significant shift and adoption of cloud-based software across the world, and it is predicted that by 2023 the public cloud service market could reach $623.3b worldwide. Many vendors have begun shifting focus from on-premises to cloud deliver models, which has raised the question “which is best?”.

As cloud services take the world by storm, let us take a deep-dive into what the real differences are and why cloud-based software is ultimately best for your business.

The main difference between ‘cloud’ and ‘on premises’ software

As suggested in the name the biggest different between cloud and on premises software is where they are hosted. On-premises software is installed locally, on a business’ computers and servers and behind its own firewall. Cloud on the other hand, is hosted on a supplier of third-party’s server and accessed via the web using internet connection.

For a long time on-premises was the only option available to companies, but now, as cloud services grow, factors such as accessibility, scalability and more need to be considered when deciding which is the best solution.

Cloud vs On Premises: key differences

Cloud software advantages

  • Accessibility – access anywhere, anytime with any device as long as you have internet connection.
  • Scalability – with options to add and scale back licenses, you can easily meet growth and unique requirement changes.
  • Lower Energy Costs – you will no longer have to pay to power on-premises servers or maintain their environment.
  • Remote Deployment – cloud-based software is deployed over the internet, rather than needing a physical installation on servers and individual PC/laptops.
  • Predictable Costs – predictable payments to cover software licenses, upgrades, support and back-ups.
  • Worry-Free – as your software is hosted by a third-party vendor, you do not need to worry about software or hardware maintenance.
  • Security – security is upheld to universal quality and standards. ISO 27001 is a globally recognised international standard that NetSuite meets and it certified in.

On premises software advantages

  • Control – seeing that the software, hardware and data being used is all (physically) yours, you decide on the system changes, upgrades and configuration.
  • Availability – do not need to rely on internet connectivity to access data.

Why is cloud based software better than on-premises?

The advantages speak for themselves; cloud offers a more flexible, reliable and scalable software solution. It provides real-time access to systems and data from a variety of devices regardless of location and with an average up-time of between 95-98% – it is no question why cloud is becoming the number one choice for business across the globe.

NetSuite: the world’s #1 true cloud-based ERP

NetSuite provides a suite of cloud-based ERP and omnichannel commerce software that is used by more than 26,000 customers in more than 200 countries globally. From start-up to multinational enterprises, NetSuite provides a scalable and adaptable software solution for businesses across every industry.

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