On-premises vs. the cloud: what will move your company forward?
The choice between on-premises (often referred to as “on-premise”) and cloud software can be groundbreaking for your company in the long term. In this guide, we explain the differences between on-premise and cloud, the respective advantages and disadvantages and reveal why we believe that the future clearly lies in the cloud – but that on-premise solutions still make sense in some industries and situations.
1. Cloud solutions: The state-of-the-art complete package
In short, the question of “cloud or on-premise?” has long since been decided: cloud software, provided via the internet and hosted on external servers, has established itself as the gold standard due to its flexibility and scalability. Market researchers such as Gartner predict that the cloud will become a business necessity for most companies by 2028.
Cloud software is usually offered as “Software as a Service” (SaaS), but can also be used as “Infrastructure as a Service” (IaaS) or “Platform as a Service” (PaaS). In each case, the respective provider is responsible for maintenance, updates, infrastructure and, above all, security – a major advantage, as entrepreneurs do not need their own servers or IT specialists. With the “private cloud”, there is also the option of hosting the solution on your own servers, but still making it accessible online. Cloud solutions are also ideal for teams that work remotely or across multiple locations.
And the costs? The initial investment for cloud solutions is generally significantly lower than for on-premises software, but remains largely constant due to the recurring usage fees. In many cases, you invest less overall, but it depends on the individual case and the size of the company and its requirements, among other things. Considerable resources are required to achieve security standards comparable to those of cloud solutions with your own servers, for example.
Advantages of cloud solutions:
Cost-efficient: Usually low initial investment and flexible subscriptions
Scalable: resources can be easily adapted to current requirements
Accessible: Access from anywhere with an internet connection
Automatically up to date: Always up to date without any effort on your part
Secure to the highest standards: Benefit from the cloud providers’ teams of experts
Reliable and supported: Tried-and-tested solutions with expert help included
Disaster-proof: Data is geo-redundantly distributed across multiple, remote servers and can easily bridge outages
Available: Modern software is usually only offered via the cloud.
Challenges of cloud software:
1. internet connection required
2. data protection responsibility is transferred to the provider
3. individual customisation options limited
2. On-premises solutions: The traditional approach
On-premises software is installed and operated on a company’s own servers. Instead of a subscription, a licence is purchased for the software, which becomes the property of the company, and there may also be ongoing costs for maintenance and updates
On-premise solutions offer full control, but also require correspondingly more resources, effort and personal responsibility. An on-premise solution is therefore more suitable for companies with their own IT teams and strict data protection requirements that need complete control over their data and systems, for example in the areas of finance, healthcare and government organisations.
Advantages of on-premises solutions:
Full control: over IT infrastructure, data and security guidelines
Customised adaptations: Customised solutions for specific requirements
One-off investment costs: Instead of ongoing fees (excluding maintenance and licence fees)
Disadvantages of on-premises software:
1. high initial investment
2. expensive maintenance and operating costs
3. less flexibility
4. significantly slower implementation
3. on-premises vs. cloud computing: the most important differences
Feature
Cloud solution
On-premises solution
Which solution is suitable for whom?
The advantages of a cloud vs. an on-premise solution may outweigh the disadvantages, but in individual cases or in certain industries, hosting your own data and solutions on your own servers makes more sense.
Cloud solutions are ideal for:
Small and medium-sized enterprises (SMEs): Small and medium-sized enterprises often benefit directly from the cost efficiency and scalability of cloud CRM. Larger companies with their own IT departments and strict data protection requirements sometimes prefer on-premises solutions.
Companies with distributed teams: For companies that work remotely or have multiple locations, the cloud offers the advantage of worldwide access. This enables seamless collaboration and standardised customer service.
Growth-orientated companies: If your company is planning to grow rapidly, the cloud offers the flexibility and scalability you need. Resources can be adapted as required, which is particularly important during growth phases.
On-premises solutions can be useful for:
Companies in highly regulated industries: for example, when companies need to ensure full control due to specific compliance requirements
Large corporations with extensive IT resources: Those who already have a powerful and complex IT infrastructure, including specialists, can benefit from the customisation options of on-premise.
Companies with the highest security requirements: Companies such as those in the defence industry can guarantee on-premise control within the company and monitor the data there.
Cloud or on-premise? The future clearly lies in the cloud
The trend is not only clear in customer service software: by 2027, over 70% of companies are expected to use cloud platforms to accelerate their business initiatives. The benefits in terms of flexibility, scalability and innovation make cloud solutions the future-proof choice for most organisations.
Let Leafworks advise you
As experts in customer service, cloud development and CRM consulting with over 700 successful projects, we support you in choosing and implementing the optimal solution for your company. Specialising in Zendesk, we offer both cloud and on-premises integrations according to your needs.
Are you ready for the next step? Contact us now for a no-obligation consultation. Together, we’ll find the perfect solution to take your company into the digital future.
Contact Leafworks - your partner for future-proof cloud solutions
Book a free introductory appointmentCloud or on-premises? The right solution for you!
Customer support teams are often faced with the challenge of managing software efficiently instead of focussing on the essentials: excellent service. Automations and integrations relieve you of this burden and ensure that you have more time for your customers.
Leafworks is your partner for Zendesk extensions – whether you use cloud or on-premises. Our integrations connect Zendesk with systems like Salesforce Service Cloud, automate ticket updates and reduce manual data entry. This not only saves time, but also improves the customer experience.
Whether start-up or enterprise: we have already helped numerous companies to optimise their support processes. Want to find out more? Get in touch – we’ll be happy to help!
Robert Cwicinski
CRM expert
- CRM
- Automation
- Integrations
- Business Intelligence / BI
- Zendesk
- Digital Transformation
- Custom MVPs
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