Cloud Service vs On-Premise: which one should you choose?

Deciding whether to use On Cloud or On-Premise depends on many factors, and each option has different advantages and disadvantages. If you ask which one is better, you have to compare the two systems — that comparison will help you decide appropriately for your organisation’s needs.

On Cloud (cloud system)

A cloud system (On Cloud) means using computing services without needing to have a server placed at the organisation or at home; instead it is renting data-storage services from a cloud provider. The advantages and disadvantages are as follows.

Advantages

• High flexibility: you can scale resources to your business’s needs at any given time.
• Reduced cost: no need to invest in hardware, software, and personnel to maintain the system.
• Accessible from anywhere: you can access data and applications from anywhere with internet.
• Easy technology updates: the cloud provider keeps the system up to date at all times.
• High security: major cloud providers have strict security measures.
• You can use it without IT staff, reducing hiring costs.

Disadvantages

• Dependence on the provider: data and applications are kept on the provider’s servers, which may raise concerns about data security.
• Cost may be high in the long run: the cost of renting cloud services may increase with usage volume.
• Internet connection: using the cloud requires a stable internet connection.

On-Premise

This means hardware that the user must buy and install themselves, also known as a Server. The advantages and disadvantages are as follows.

Advantages

• Control: the organisation can control the entire system.
• Security: you can set your own security measures.
• Performance: you can customise the system to suit specialised tasks.
• In the long term it is more worthwhile than the cloud — for example, an initial investment of 200,000–300,000 baht that lasts 7 years; conversely, cloud pricing starts from 100,000 baht per year upwards, so in the long run it is more expensive than On-Premise.

Disadvantages

• High cost: you must invest in hardware, software, and personnel to maintain the system.
• Low flexibility: scaling the system takes a long time and is costly.
• Maintenance: you must have an IT team continuously looking after and maintaining the system.

When should you choose each?

Choose a cloud service when

• You want flexibility to scale resources without investing in additional hardware.
• You want to reduce IT costs, both staff and equipment.
• You want access to the latest technology.
• You don’t want to invest in hardware and software.

Choose On-Premise when

• You have important data and want high security control.
• You need high work performance, and it is confidential and specific to the organisation.
• You have an IT team ready to maintain the system.
• You want flexibility to customise the system.

ERP systems and choosing On Cloud & On Premise

An ERP system itself also needs space to store the system data used in the organisation, which depends on the organisation’s needs as to how it wants to store data — because whether On Cloud or On Premise, the performance in use does not differ much, and each has its own advantages and disadvantages.

Choosing between Cloud Service and On-Premise depends on the needs and constraints of each organisation. Analysing various factors such as budget, organisation size, the type of data, and the importance of security will help you decide correctly.

PlanetOne ERP is an ERP system with the ability to look after Thai businesses so they can grow stably and sustainably, closing the blind spots that worry you. Highly flexible, it can be adjusted to fit your business, and it supports both On Cloud & On Premise. Don’t decide just yet that it isn’t the system you’re looking for — try arranging a presentation first.

To arrange a presentation, call 02-271-4362–3, 095-294-5693 (Khun Jane).