Cloud Vs On-Prem Vs Hosted

A major choice facing any business evaluating Line of Business or ERP software is what type of infrastructure model to adopt.

Will you rely on a traditional, but tried and tested on-premises infrastructure, servers hosted in a private data-centre or true public cloud-based infrastructure?

What are the main differences between the three options and how should a company choose the best option.

Firstly, let’s define exactly what these terms mean:

  • On-Premise – With this type of infrastructure you are responsible for everything related to the running of the servers and the software system it hosts. You must purchase the network infrastructure, power the equipment, purchase servers, operating systems, database software, etc. You also need to maintain all of this to keep it running, secure and up to date. Once you purchase a license for the software from the vendor, such as a Microsoft Partner like Netitude, the software is installed on the server or servers you own.
  • Public Cloud – Using a Software-as-a-Service (Public Cloud) model, you do not have to purchase any licenses or hardware. The only cost is reoccurring fees for the services, which includes the servers, network and the operating systems required to host the software.  This is all maintained by the public cloud provider, the most common being Amazon AWS, Google Compute Engine and of course Microsoft Azure.
  • Data-Centre Hosted – Like on-premises, you purchase licenses to use the software from a vendor, but rather than purchasing all of the hardware and infrastructure, you rent it from the vendor or another third-party provider. It is remotely-hosted, but you still own the software you purchased.

Deciding which of these options to choose largely depends on the current state of your business, your existing infrastructure… and the direction you want your organization to take in the future.

  • If you already have the infrastructure in place and plan on keeping it, it might make sense to stick with an on-prem deployment. Another thing to bear in mind is your internet connectivity, if it’s low speed, an on-prem solution may still be the best option.
  • If you have the infrastructure but find it difficult to maintain and maybe need to save on maintenance costs, a hosted solution will allow you to keep your current software and licenses while using someone else’s servers and network.
  • If you have neither infrastructure nor the money or desire to invest in it (or upgrades to current systems), the cloud just makes sense.

In the long term, the cloud might make the most sense for a new business since you will not have to buy upgrades or additional maintenance plans and it is a predictable monthly fee.

If you are evaluating options, or feel it’s time for your business to review the systems you have in place contact Netitude, we can help you navigate to the best solution for your business.

This type of advice and guidance is supplied inclusive to our fully managed IT service customers, imagine having an experienced IT director on hand to guide you, without the costs associated with running a full IT department.



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Adam Harling Adam Harling

24 October 2018

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