A Comparison of On-Premise and Cloud-Based Solutions

If you are the Tech Master, you might be familiar with the phrase of Premise and Cloud, which is the CRM that is implemented convectionally or automatically where resoucerment and infrastructure settings, and software has been done by the company itself by the the IT team.

There are many factors, the IT team considers in choosing whether a cloud or premise will be a good fit. Conversely, there are many companies that are unable make the leap into the cloud, instead relying on their tried-and-true legacy and on-premise applications and software to do the business.

On Premise

Related to the app that runs the server, we might have heard the word “on-Premise”. After we searching this information, we well find that premises are defined as an “in-building.”.

In the other words, we could understand that by putting the server in a building, we need to install the operation system and running the application.

If the server is placed in the building, it means that there must be an IT (information technology) department that takes handle of the server, both hardware and software. Here the vendor has released everything to the Information Technology department.

In this development, we are next about to consider the budget for the maintenance activities of the server.

Started from the server, developer, design, and all the member that will be in charged. Company can easily control all the database where the company saved it. It’s just the company needs to give an extra budget to recruit the IT team.

Cloud Computing

Simply put, cloud computing is a method of delivering various services over the internet. The resources in question are, for example, applications such as data storage, servers, databases, networks, and software.


Cloud-based CRM is operated in a Remote Location system and is provided to all client that are available in the network. Basically, Cloud Based CRM is a Software-as-a-service where company is enough to replace the application/software to use CRM. All will be saved in a cloud that is provided by the provider.

All the company needs to do is just login in into the software to get the access of the data from CRM. Company doesn’t need to provide infrastructure or recruited the IT team because all needs and arrangements related to software and servers are handled by the provider.

The adoption of Cloud Computing worldwide has proven a positive trend from year to year. RightScale 2017 The State of Cloud Report reveals 95% of 1.002 people from IT professionals worldwide, including 14% in Asean Pacific area said that they have already used Cloud Computing. That number increased 2% from the 2 previous years.

The Difference On-Premise and Cloud-Based

Whether you choose On-Premise CRM or Cloud Based CRM has the same security level for data safety. It’s just the Cloud Based CRM that has more advantages, like the server is available not only in one location.

All the servers in Cloud Based can be integrated until ensuring that your CRM has turned down to 1%.

The other differences among these both CRM, are explained in the sections below.

1. Investation Value

On-Premise CRM has normally a huge investation value, because the company needs an extra budget to recrut the IT Team. The other side, Cloud Computing needed a smaller budget because the system is run by the provider.

2. Procurement and Inventory

If you chose On-Premise CRM, you will order the package from the manufacture with one time cost. Cloud based CRM needs a subcription cost for the service, repairing, and the adjustments according to the needs.

3. Installment

On-Premise CRM is installed in the cliend system, while Cloud Based can be installed itself, because the CRM is provided for customers who are connected to the internet, anywhere and anytime.

4. Time

On-Premise CRM is tend to take a longer time before the CRM is ready to use. Cloude Based CRM, it is can be used just right on time and the waiting time is no longer than 30 minutes.

5. IT Team

On-Premise CRM needs to look for professional IT team that can handle the CRM properly, it needs budget in recruiting and payroll.

Besides, Cloud Based CRM doesn’t need the IT Team to do the maintenance, it’s enought to call the provider to take in charge all the problems that might be happen towards the CRM.

Advantages and Disadvantages Summary

Every option has its strength and weakness, as well as the ublic cloud nor on-premise.If you need a closer picture in order to compare, you can see the summary below.

Cloud Computing Advantages:

1. Scaleability

The reason why Public Cloud services are very popular, it is because of its trait that can give the adjustable services based on your business needs.

For examples if your are now still need a public cloud with low capacity, later you can add that capacity as the needs follow to increase.

2. Low Budget

No more high budged for invesment because all the tools and maintanance are ideally, and already provided by the provider of Public Cloud. Your only need to pay the service based on the service you are using.

3. Accessibility

All the data will be saved into the serve, so you can access it all anywhere and anytimme as long as you are connected to the internet.

Cloud Computing Disadvantages:

1. Uncontroalable

Cloud Computing or Public Cloud does give you the ideal provider cause its equipment and resource. But it is actually can be its weakness because you can take a full control of the technology you are using. You can’t know where and how the environment of your data is being operated.

2. SLA is On Provider’s Hand

All the services that is given by the public cloud is depending on the Service Level Agreement (SLA), which is the contract from the service provider in giving a service guarantee. It is usually included all the service aspects.

If there was a proble, you can only depends on SLA contract and wait for the details when the problem is fully handled.

On-Premise Advantages:

1. A Strong Security

All the datas and apps aer very important to be saved inside your own firewall, so it is accessible by the company. It’s like a private cloud and suitable to save a sensitive data.

2. Low TCO

TCO is a Total Cost Ownership. Compared to the public cloud, on-premise data center has an operasional with lower cost. Right from the start you only pay in an exact price and one-time cost.

3. Controlable

On-Premise has a private cloud trait, so it is possible for you to take a full control towards the customization and data center setting.

On-Premise Disadvantage:

1. Huge Front Budget

The resources that is used for the data needs an upfront budget with high price, but once it gets implemente, you don’t need an extra payment for additional service.

2. Independently Responsible for Data Center Maintenance

On-premise is a private cloud, so you need to do all the maintenance and operation is done by the company itself.

3. Limited Scaleability

On-Premise data center doen’s have a high scaleability level like public cloud, so later in the process, you can change the IT resource depends on the needs.

Leave a Comment