As businesses contemplate the best data storage for their organization, it ultimately comes down to on-premise vs cloud.

Each solution has its own advantages and disadvantages, and it can be hard to decide which will work best for your business. In this article, you'll find out everything you need to know to decide between on-premise vs cloud.

On-Premise and Cloud Computing Defined

Since we're going to compare an on-premise set-up with a cloud set-up, we think we should define both.


An on-premise data center is a group of servers that a business owns and maintains on-site. An on-premise infrastructure can be used to run a private cloud.

On-premise data centers also require their own software licenses and IT employees to maintain the infrastructure in addition to the hardware.


Before we can compare on-premise to cloud storage, we have to answer the question of what is the cloud? The cloud refers to a group of servers that are accessed over the internet and the software running on those servers.

In general, the cloud has three offering categories

  • Software as a Service (SaaS). This is what most people think of when they think of the cloud. This category includes services such as data storage, project management tools, email, etc.
  • Infrastructure as a Service (IaaS). This refers to the infrastructure of the cloud. The provider would maintain everything that is needed to manage SaaS tools. IaaS lets the physical components such as servers and other hardware live offsite, freeing up space and resources.
  • Platform as a Service (PaaS). This category refers to an environment where developers can build and create apps that live in the cloud.

There are three main types of cloud deployment models, or how you will connect to your chosen cloud service.

  • Public. You may be familiar with two of the most popular companies in this area: Amazon and Microsoft. Their cloud environments, AWS and Azure, respectively, are examples of managed cloud hosting. Public cloud provides lots of storage, making it available to a wide range of users. Users rent the program and hardware services as opposed to buying programs and hardware. The vendor handles all the maintenance, administration, troubleshooting, backups, and capacity planning.
  • Private. A private cloud is like a public cloud environment, except it offers more control over privacy and security. Private clouds use hardware and a network that is not shared by anyone outside of the company or organization.
  • Hybrid. Combines on-premises datacenter or server and public cloud resources. This allows organizations to leverage the best of both environments.

On-Premise vs Cloud Pros and Cons

The main difference between on-premise and cloud deployments is where the hardware resides. While they may have other similar attributes, there are pros and cons to each.

On-Premise Pros

  • One-time investment. Though there will be upkeep fees, once hardware and licenses are purchased, most of the money spent will be a single purchase.
  • Control. Since you would own the infrastructure, your data, software, and hardware are yours so you can make changes as you see fit.
  • Uptime. Since your data is on-site, you will not rely on internet to run your software.


  • Cost. On-premise data centers are a large capital expenditure requiring an upfront purchase in addition to maintenance cost.
  • Maintenance. Since you own the hardware, you are responsible for maintaining the hardware and software, backups, storage, etc.
  • Implementation time. On-premise data centers require installation and set-up which can take time.



  • Accessible. Cloud deployments are accessible with a simple internet connection allowing employees to work where they are.
  • OpEx. Cloud requirements do not require capital expenses. Instead, the monthly fees because operational expenses, freeing up money for other business needs.
  • Predictable. Because the fees are monthly, the payments become predictable.
  • Quick to deploy. Cloud deployments can be implemented in a manner of hours or days.
  • Scalability. Cloud storage can be scaled up or down easily depending on business needs.
  • Ease of use. Since you do not own the hardware and software, you don't need to worry about the maintenance.


Limited customization. Depending on how it is hosted, it can be difficult to customize cloud deployments.

Connectivity. Cloud deployments require internet access.

Cloud vs On-Premise Cost Comparison

The main cost difference between on-premise and cloud will be the upfront costs. On-premise infrastructure requires a capital expense while cloud deployments would be a monthly fee.

Additionally, should a company need to scale up, on-premise would require purchasing additional software while cloud models allow businesses to pay for what they use.

How Anteris Can Help

In the end, there isn't one solution that is best for all businesses. It's going to come down to what works for your organization. In fact, many Clients choose a hybrid cloud solution in order to take advantage of the benefits of on-premise and cloud.

As a strategic provider, Anteris works with our Clients to find the best solution for their situations. We offer our Clients private and hybrid cloud management services. Through our Data Center-as-a-Service (DCaaS) setup, Clients can access enterprise-level hardware and security through our data center for a predictable monthly fee.

Our DCaaS structure allows for greater availability of equipment. Since we maintain an inventory of related models, we can quickly dispatch replacements when required. Data Center-as-a-Service provides a longer use-life and more excellent value for the team.

In addition, we can combine hardware with data management to create greater resilience. We can do this in various ways, such as linking onsite servers to our data center or installing multiple servers on the same site so if one fails, others remain online. These solutions could easily cost up to $100,000, putting a significant strain on your bottom line. At Anteris, we've already made these investments—allowing Clients to access enterprise-level technology at a fraction of the cost.

Let us make your technology freeing, not frustrating.