Lecture-07: On-Premises and On- Cloud (CC)

 On Premises VS On Cloud

On-Premises (On-Prem):

• IT infrastructure (servers, storage, networking) is physically located within the organization.
• Organization is responsible for hardware, software, maintenance, and security.
• Traditional model of computing.

On-Cloud (Cloud Computing):

• IT resources are hosted by a third-party cloud provider (like AWS, Azure, Google Cloud) and accessed over the internet.
• Provider handles hardware, maintenance, and often security.
• Scalable and flexible resource model.

 

2. Cost

Aspect	On-Premises	On-Cloud
Capital Expenditure (CapEx)	High upfront costs (buy servers, networking, software)	Low upfront costs, pay-as-you-go (Operational Expenditure, OpEx)
Operational Costs	IT team maintenance, electricity, cooling, software updates	Included in subscription fees, can scale based on usage

 

3. Scalability

• On-Premises: Scaling requires purchasing more hardware, which takes time and investment.
• On-Cloud: Scaling is instant and flexible, can increase or decrease resources as needed.

 

4. Maintenance & Management

• On-Premises: Organization is responsible for all updates, patches, security, and backups.
• On-Cloud: Cloud provider manages hardware, basic security, updates; organization manages applications and data.

 

5. Security

• On-Premises: Full control over security. Sensitive data can be completely isolated.
• On-Cloud: Security managed by provider, but there are concerns about data privacy, compliance, and control. Cloud providers often have strong security protocols, sometimes better than smaller organizations.

 

6. Performance & Latency

• On-Premises: Can have low latency if everything is local, important for high-performance workloads.
• On-Cloud: May have network latency, depends on internet connection and location of data centers.

7. Reliability & Disaster Recovery

• On-Premises: Dependent on internal backup systems. Disaster recovery setup can be costly.
• On-Cloud: High availability and redundancy are often included. Data can be replicated across multiple regions.

 

 

8. Examples / Use Cases

On-Premises	On-Cloud
Banks storing sensitive financial records	Startups using SaaS platforms for CRM
Hospitals storing patient data internally	E-commerce platforms scaling during peak seasons
Organizations with strict compliance requirements	Development and testing environments that require flexibility

Difference between On-Premises and On Cloud:

	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 depend 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.