On Premises VS On Cloud

Last Updated : 23 Jul, 2025

Let us first understand the meaning of the word On-Premises and On Cloud.

On Premises : In on-premises, from use to the running of the course of action, everything is done inside; whereby backup, privacy, and updates moreover should be managed in-house. At the point when the item is gotten, it is then installed on your servers; requiring additional power laborers, database programming software and operating systems to be purchased. With no prior commitment, you anticipate complete ownership.

On Cloud : Cloud refers to the delivery of on-demand computing services over the internet on “Pay As U Use “services, in simple words rather than managing files and Services on the local storage device you can do the same over the Internet in a cost-efficient manner. With a Cloud-based enrolment model, there is no convincing motivation to purchase any additional establishment or licenses.

Difference between On-Premises and On Cloud :

Scalability –
When it comes to scalability we pay more for on-premises set up and get lesser option too and once you scale up it is difficult to scale down and turn into heavy loss like infrastructure and maintenance cost while on the other hand Cloud allows you to pay only how much you use with much easier and faster for scaling upper and down.
Server Storage –
On-premises need a lot of space, power, and maintenance to store while on the other hand cloud solution are offered by the provider and maintain the server which saves your money and space.
Data Security –
On promises offers less security and for security, we need physical and traditional IT security measures whereas the cloud offers much better security, and I avoiding all other physical and other security options.
Data Loss or Recovery –
If data loss occurs recovery in on-premises is very least while cloud offers you the backup for easier and faster data recovery.
Maintenance –
On promises require an extra team for maintenance which increases the cost while the cloud is maintained by the provider.

	On Premises	On Cloud
1.	Control of user is more.	Control of user is less as third parties are involved.
2.	Infrastructure is not easy to scale.	Infrastructure is easy to scale.
3.	Internet connectivity is not need all the time.	Internet is must for the services of the cloud.
4.	These services run within the enterprise only.	The services of cloud depends on the third parties so these are not only accessed within the enterprise.
5.	These services are not quite flexible.	The services of cloud are highly flexible.
6.	Not available on a subscription basis.	Services are available for purchase.
7.	For hardware and software updates, enterprise is responsible.	For hardware and software updates, third party is responsible.
8.	Cost is fixed.	Cost is not fixed, as additional services comes with additional charges.
9.	Data is easily portable.	Data is not easily portable.
10.	The deployment happens in the local environment.	The deployment happens on the internet.
11.	Security is more.	Security is less as all the information is stored in the cloud.
12.	These services are used in large companies.	These services are used in small and mid sized companies.
13.	Implementation time is more.	Implementation time is less.