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Private Cloud vs On-Premise


Private cloud vs. on premise difference: Private clouds require a higher level of customization and control during setup, while on-premises setups are much more limited in terms of options.

For many organizations, the move to a private cloud is the next step in their IT journey. But what are the benefits of a private cloud, and how does it compare to on-premise systems? Here we'll take a look at the pros and cons of each option in various categories to help you decide which is right for your organization.


Private Cloud vs On-premise side-by-side comparison


What is on premise software?

On-premises software is a type of software installed locally. The software runs on the computers of the individual or organisation using the software, rather than from a third-party location. A company’s in-house I.T. department will most likely maintain on-premises software.

On premise software may be the best option for your business based on the following factors:

  • You require complete control over your data security. This, for example, may be a necessary requirement for organisations that have strict security compliance regulations.
  • You already have the in-house resources and personnel to install, maintain and upgrade your existing IT resources and investments.
  • You have other services and software that will need to be integrated with your new software – there may be limitations on integration with some cloud software providers.


What is cloud software?

Third-party vendors host cloud software, including bare metal server hosting, for individuals and organisations and can be accessed through the Internet. With cloud software, you’ll often find that the third-party vendor maintains the cloud software. Maintenance can include: backups, updates and monitoring.

Hosting data in the cloud provides you with an alternative option to local hosting - here is why this could be most beneficial to your business:

  • You need a software solution as soon as possible. Typically, cloud software will take less time to implement compared to on-premises software.
  • You don’t have dedicated IT personnel, skills or time to manage your software. Dedicated support is a common feature of cloud software providers, who can advise on how best to utilize the platform.
  • You want to become a more innovative company. Signing up to a cloud based software means you are able to take advantage of the advances more nimble internet based software providers are making. Innovations in the product are easily passed on to your business without any changes being made to your own computers. 
  • You’re looking for a solution that can improve the way your organisation works remotely. Because cloud software is accessible from the Internet, your team and clients will be able to access their documents from anywhere with an Internet connection.

private cloud solution gives you the ability to increase your security beyond public cloud solutions, as well as benefiting from the security as if your software was installed on site. There’s also the ability for you to choose the location of your private cloud servers to ensure optimal performance and speed. Additionally, using a private cloud solution will give you the cost-effective scalability that on-premises will fall short on.

With there now being a cloud solution for every business, for example public cloud, private cloud, and hybrid cloud; on-premises software will become a less popular option for businesses in the years to come. So, with the development of innovative cloud applications like Clinked, on-premises software is becoming out-dated in comparison.

Private Cloud vs On-premise: Setup and Configuration

There is a big difference between private cloud and on-premises setups and configurations. Private clouds require a higher level of customization and control, while on-premises setups are much more limited in terms of options.

Private clouds give you the ability to really tailor the environment to your specific needs. You can choose which applications to run, how they're configured, and who has access to them. On-premises setups are usually restricted to certain applications that the provider offers, and you generally don't have as much control over how they're configured.

Private cloud vs on-premises:

  • Flexibility: Private cloud setups are more flexible than on-premises setups because they can be easily scaled up or down to meet the changing needs of your business. On-premises setups are less flexible and can be more difficult to scale.
  • Security: Private cloud setups offer increased security because they allow you to keep your data off-site and away from potential threats. On-premises setups are less secure because your data is stored on-site and is therefore more vulnerable to security threats.
  • Implementation: Private cloud setups can be more complex to implement than on-premises setups because they require the use of new technologies. On-premises setups are typically less complex to implement because they build on existing infrastructure.

Infrastructure Management

As organizations strive to do more with less and optimize their IT operations, they are turning to private cloud and on-premises infrastructure management solutions. But what is the difference between these two approaches?

Private cloud refers to a model of computing where resources are delivered as a service over the Internet from a centrally managed data center. On-premise infrastructure management, on the other hand, refers to an approach where an organization manages its own IT infrastructure, typically in-house.

So, what are the key differences between these two approaches? Let's take a closer look:

  • Cost: Private cloud can be more cost-effective than on-premises infrastructure management. With a private cloud, you only pay for the resources you use, which can help save money over time. On-premises infrastructure management can also be costly, particularly if you need to purchase and maintain your own hardware and software. In addition, because on-premises infrastructure management is typically less flexible, you may end up paying for resources that you don't use.
  • Privacy: Private cloud can offer better privacy than on-premises infrastructure management. You can keep your data and applications behind a firewall with a private cloud and implement additional security measures to protect your data. On-premises infrastructure management can also offer privacy protection, but because it typically relies on older technologies, it may not offer the same level of protection as a private cloud. In addition, because on-premises infrastructure is typically shared among multiple organizations, your data may be more vulnerable to being accessed by unauthorized individuals.
  • Performance: Private cloud can provide improved performance over premises infrastructure management. With a private cloud, you can utilize the latest computing technologies and scale your resources as needed to meet your organization's demands.

Resource Scalability

Private clouds offer greater flexibility when it comes to scaling resources up or down. This is because private clouds are designed to be highly scalable, with the ability to add or remove resources as needed easily. Private clouds also offer more control over how resources are used, which can be beneficial for organizations that have specific needs or requirements.

On-premises resource scalability is less flexible than private cloud but can still be adapted to meet the changing needs of an organization. On-premises resource scalability is typically more expensive than private cloud but can offer a higher level of security and control.

Organizations should carefully consider their options before deciding which resource scalability model is right for them. Private clouds offer greater flexibility and control but may be more expensive. On-premises resource scalability is less flexible but can be more affordable. Ultimately, the decision comes down to what is most important to the organization and what will best meet its needs.


Upfront and Ongoing Cost

When evaluating the costs of private cloud vs. on-premises, there are several factors to consider. Up front costs for private cloud can include hardware, software, and deployment costs, while on-premises costs can include servers, storage, and networking equipment. When using private cloud, you also need managed cloud support and maintenance, while on-premises deployments typically require in-house IT staff.

Ongoing costs for private cloud vs. on-premises can vary depending on the size and complexity of the deployment. Private cloud providers typically charge by the hour or month for compute and storage resources, while on-premises deployments may have a higher upfront cost but lower ongoing costs.

When comparing the costs of private cloud vs. on-premises, it's important to consider all factors to determine which option is best for your organization. Private cloud can offer some advantages in terms of flexibility and scalability, but on-premises deployments may be a better option for organizations with specific compliance requirements or sensitive data.

Which deployment option is right for you will depend on a number of factors, including budget, business needs, and technical requirements. But by understanding the up front and ongoing costs of each option, you can make an informed decision about which option is best for your organization.

Our final key benefits of cloud software solutions to consider when weighing up the options between private cloud vs on premise:


Benefits of using a Clinked Private Cloud (rather than on-premises software):

  • Flexible security options e.g. multi-factor authentication, IP restrictions etc.
  • Can be deployed to multiple different regions.
  • Fully customised to match your organisation’s branding (white label).
  • No regulatory concerns about your data. Bullet-proof security.

Clinked is a client portal that can offer flexible options for businesses: public cloud or private cloud, and full white-label customisation options. If you’d like to find out more about Clinked’s private cloud (we call it custom portal), book a demo with us today to see the platform for yourself. 


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