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Cloud Vs On Premise - Where do you go? Part 3

In continuation to my previous blogs Cloud Vs On Premise Where do you go? Part 1  Part 2, we will be weighing in on the critical factors the Customer should look for before taking the plunge.

After having understood the pros and cons of Cloud Vs On-Premise applications, the critical factors that Customers should look out for in their decision making are

  • What suits my Business
  • Data Security
  • Cost


What suits my Business?
An On-Premise application is suitable for large Businesses who wants to have a dedicated data center to cater to their Enterprise needs and also flexible enough to do customizations on top of it. Since the hardware is restricted to the company usage, it is also suitable for Organizations with multiple applications and complex workloads. The drawback here is with regard to expanding the Server capabilities on an On-Premise system when there is a need to expand the Business capabilities.
Compared to this, Cloud applications would be scalable according to your varied business demands. But the control over data would be limited as it would be maintained by the Vendor or a 3rd party. On the Public Cloud the Customers data storage resources would be shared with others in the provider's network, this would not be the case in a Private Cloud though.


Data Security
Data security would be lesser on the Cloud as there is a dependency on the 3rd party who is maintaining this, it needs to be ensured that their security certificates are up to standard. The Cloud data may also be deployed on multiple locations managed by the 3rd party and the security aspect for each location need to be looked into.
The On-Premise data is available on the local network and this ensures that only Users with company approved credentials are able to login to it. The Cloud data being on the Internet is more prone to being interfered upon by external sources. There would be multiple Internet entry and exit points that need to be sanitized for security.

Cloud is much suited for smaller corporations who would not have the resources to do a large upfront investment initially to start their business. On-Premise applications will require an initial investment to deploy, build and maintain the infrastructure required on the Customer location.
The time required for implementation is also quicker for Cloud applications as there is no dependency here with the Physical Infrastructure. The licenses to start using the software would be available immediately after the software is purchased form the Vendor.
Cost Benefits - A typical Cloud implementation can provide savings up to 30% in IT resources compared with an On Premise implementation. A 2009 Booz Allen Hamilton (a leading American technology consulting firm) study concluded that a cloud computing approach could save 50 to 67% of the lifecycle cost for a 1000 server deployment.

Future Outlook
The results from the 2013 Future of Cloud Computing survey reveals some interesting facts on the companies vying up for cloud adoption. Some of the Business Cloud applications like File Sharing, Business Productivity, CRM/Marketing and Social Business/Collaboration are in use by more than half of all organizations that were surveyed. But the IT Cloud application usage in these companies are much lower comparatively. However over the next year the fastest areas of growth in Cloud applications will be in the IT areas like Big Data, Mobile, Systems Management, Backup/DR/BC, Helpdesk and Security. Both Business and IT see greater migration to the Cloud bringing equal or better Total Cost of Ownership (TCO) to the organization.


I would like to conclude my blog series with the following personal viewpoint. While there are some limitations with Cloud Applications compared with On-Premise applications, Customers would be better suited in deploying their applications on the Cloud or moving their current On-Premise applications to the Cloud. This would give them better ROI in the future and would also help them in scaling up their resources/applications easier to compete in the market.

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