On-premises
With the rise of cloud systems and software as a service (SaaS), or platform as a service (PaaS), it became necessary to define a term for the operation of software on local servers and hence not in the cloud. For that, the term on-premises was established. The same term is also widely used for licensing models.
On-premises comes from English and means that a system is operated on the customer's "own territory" or locally, on the customer's own hardware or in the data center. Nowadays, it can also mean that the software is operated on rented infrastructure, e.g. in a large data center (AWS, Azure, Google Cloud,...). The important feature is that the users decide where the software is operated and they are also responsible for its operation.
Challenges of on-premises operation
The biggest challenge with on-premises operation of software is the effort required to install and maintain it:
- Installation and maintenance need to be carried out by the operator, thus tying up resources
- Operation and update mechanisms differ from software to software, so expertise is needed
In addition, an infrastructure, e.g. a server, is needed to run the software. This in turn requires secure operation of the infrastructure, which includes, among other things protection against unauthorized access and the implementation of a backup and restore mechanism.
Comparison of on-premises and cloud services
The difference between using software on-premises or as a cloud service is functionally irrelevant in most cases. This means that the features for the end users are identical. Even though cloud services are now popular, this does not mean that on-premises operation no longer has a right to exist. Depending on what software is needed for and what security and data protection requirements apply, it should be weighed up which of the two forms of operation is better suited.
Installation and operation
On-premises: The software is installed and operated by the customer on their own server. This means that the operator is for example responsible for the availability of the solution.
Cloud service: The software is operated by a service provider in the cloud. Users have the right to use the software. The responsibility for installation and operation lies with the provider.
Costs
On-premises: The operator must pay for all costs incurred, such as hardware, electricity, space and other operating costs.
Cloud service: There are different pricing models for cloud services. Depending on the model, either a fixed amount is incurred or payment must also be made for the use or utilization of the system.
Control
On-premises: With on-premises software, operators have full control over the data and the software itself at all times. This means that maintenance work, upgrades and individual adjustments or configurations can be carried out or made in accordance with their own requirements.
Cloud service: With on-premises software, operators have full control over the data and the software itself at all times. This means that maintenance work, upgrades and individual adjustments or configurations can be carried out or made in accordance with their own requirements.
Security and compliance
On-premises: With on-premises software, the user has full control of their data and over the software. This means that no third parties are involved. From a compliance perspective, this can be important, as there is no need to additionally ensure that a service provider also behaves in accordance with the specifications. Security standards can be set and implemented in-house. This can be particularly important in highly regulated industries such as finance or public institutions, or for highly confidential or sensitive data.
Cloud service: In principle, cloud services are very secure. Since a loss or theft of data would cause lasting damage to the provider's business model, they are very concerned with security. However, due to the large number of customers, it can be difficult to have special specifications implemented for the provider's own compliance.
Hybrid Cloud
Since both cloud services and on-premises software have their advantages and disadvantages, a hybrid form of the two approaches has also developed that combines the advantages of both approaches and reduces the disadvantages: the so-called hybrid cloud. You can find out more about this in our blogpost on the subject.
On-Premises with Cloudogu EcoSystem
Users of the Cloudogu EcoSystem can operate their instance(s) in their own sphere. That means that the operation and the required hardware are solely up to the client of the Cloudogu EcoSystem.
The individal tools of each instance are provided via a central backend that is operated by Cloudogu.
