The important choice is between on-premise solutions and cloud computing models. On-Prem. solutions providers host hardware and software applications locally, offering businesses extensive control over their IT environment. 

Despite the growing popularity of cloud-based alternatives, on-premise solutions are preferred, especially by institutions prioritizing data security and management. 

What are On-Premise Solutions?

On-Prem. solutions are IT infrastructures in which hardware and software applications are hosted by enterprises locally or on-site. 

In comparison to IT assets hosted by cloud service platforms or remote data centers, enterprises have more control of on-premise IT.  

The extent of control includes the management of assets such as performance maintenance, security measures, and the physical location of the on-premise environment where it is located. 

Even today, various legacy and traditional data center resources are on-premise. But, in recent years there has been a shift and some of these resources have migrated to cloud service and hybrid models that use a mix of cloud and on-premise solutions.

What Functionality Do On-Premise Solutions Offer?

Similar to the software purchased from external providers and installed on the hard drives of personal computers, on-premise software is installed and run locally on the hardware of businesses. 

Contrasting with cloud models, these solutions allow enterprises to have complete control over their work environment. As a disadvantage though, they have the full responsibility of maintenance of the on-premise environment.  

These include solving potential issues and risks that may arise in IT departments of enterprises in operation. 

On-premise software providers often have no access or constrained access to the IT assets of enterprises, and access is usually via desktop applications, while for increased security measures, businesses often opt for web-based user interfaces.  

Most of the on-premise software is licensed for a limited time, though an increasing number of software providers are switching to SaaS (Software as a Service) models. Microsoft Office and Adobe products are examples of such software.

On-premise Solutions: Application Areas

Despite the increasing shift from on-premise to SaaS solutions, on-premise software is still preferred by enterprises depending on their IT resources and operation requirements, often for the security and management of sensitive data. These include financial institutions and public authorities. 

Hence, the preference of on-prem. solutions is a conscious decision as some of the businesses and institutions want less involvement of third parties in their operations such as the processing of their own data. 

On the other hand, the use of on-premise solutions is becoming less preferable due to the increasing popularity of cloud computing models such as SaaS (Software as a Service). 

Cloud-based solutions provide businesses with the resources they need for both software and hardware, including the maintenance of operation of the IT environment. 

Additionally, SaaS providers offer monthly or annual payment options instead of the pay-for-once approach of on-premise solutions. This makes the costs of software more predictable for businesses. 

VCaaS (Video Conferencing as a Service) software, similar to SaaS solutions, are cloud-based solutions used for visual communications over an internet connection, allowing for easier collaboration and communication for businesses. 

As a VCaaS solution, OctaMeet offers individual users and enterprises a wide range of functionalities and capabilities such as annotations and meeting recording. It also offers an On-Premise option for corporate users.

Advantages and Disadvantages of On-Premise Solutions

High Level of Management and Control

Enterprises using on-premise solutions have absolute control over the data stored in their environments, also possessing the right to give access rights. Therefore, businesses themselves deal with all the responsibility regarding IT resources and software, independent of software providers. 

Generally, using the software and accessing the data does not require internet access to the nature of the local environment.

Increased Data Security

Within on-premise solutions, the data is stored in a separate data center, hence, third parties have no access to such information. 

Furthermore, complying with legal regulations regarding data protection is facilitated by on-premise environments as the information is stored locally by the businesses.

Low Cost for Long-Term Licensing

On-premise solutions require paying a license fee only at the beginning of the purchase. Other than paying for additional costs for updates and support, businesses have predictable costs for the services they use. Additionally, integration of software within a network is possible.

High Effort for Maintenance

On-premise solutions users have the responsibility to fix the issues that may emerge, also taking care with the regular software updates and backup of data.  

Depending on the availability of resources of the enterprises, these processes may be time-consuming, and have negative impacts on the business operations.  

Therefore, employees who are experts in IT maintenance or a separate IT department within the enterprises are often required. 

Issues with Hardware and Software Compatibility

Effective use of software often requires certain hardware environments, including databases, operating systems, and server systems. 

In this context, compatibility of hardware and software is crucial for the function of business operations, and in case of lack of technical knowledge compatibility issues may arise.

Less Predictable Operational Expenses

Aside from the maintenance costs allocated for IT experts and departments, businesses may have to deal with additional expenses for technical infrastructure, which further increases if any issues emerge.  

Furthermore, on-premise solutions providers license their software to a limited number of users, which can increase the expenses of businesses depending on their equipment of choice.

Differences between On-Prem. and Cloud Computing Models

On-Prem. and cloud computing models are solutions used for software and data management and are distinct from each other in various aspects. 

SaaS solutions are hosted by service providers via the Internet, and these providers deal with the operational and management processes of such IT environments.  

Data of enterprises using SaaS services are stored in the data centers of the service providers. Payment is often made in monthly and annual subscriptions, and businesses may have the opportunity to cancel their subscriptions on demand depending on their plans of choice. 

Since businesses can foresee their possible expenses based on their plan and duration of use, SaaS services offer more flexibility and efficiency in terms of time and required costs, having an advantage over on-premise services in this aspect. 

Furthermore, enterprises have the option to choose between other cloud computing models, PaaS and IaaS, depending on their business needs.

In conclusion, on-premise solutions are IT infrastructures utilized by enterprises. Unlike cloud solutions, enterprises manage all the operations of their IT environment including software and hardware.  

Businesses have increased security, control, and low installation costs with on-prem solutions. However, they have to face potential issues such as high efforts and costs for maintenance and licensing of software. 

Despite the increasing use of cloud computing models like SaaS solutions, many institutions and businesses still prefer on-premise solutions depending on their operational needs and security concerns, as they have the capability to store their data in their own data centers.

You can book a demo with our product team to explore OCTAPULL and its On-Premise installation options.

1. PaaS

As a cloud service, PaaS provides enterprises with a cloud-powered environment in which they can create, run, and manage applications. Similar to IaaS, a cloud service provider hosts and manages the hardware, as well as the software the platform has. 

Therefore, PaaS eliminates the need to install on-premises hardware and software development environments for developers. 

Organizations can access the PaaS service using a GUI (graphical user interface). This interface allows teams to collaborate across the application processes such as coding, testing, deployment, and feedback. Payment options are often on a per-use or monthly basis. 

Use Cases of PaaS

Management of APIs 

PaaS facilitates the processes for developing and managing APIs for data sharing across applications thanks to its built-in frameworks.  

Strategies for Native and Hybrid Cloud 

PaaS solutions offer cloud-native development systems that allow consistent management across private and public cloud, as well as local IT environments in contrast to on-demand ones.

Benefits of PaaS 

• Easier Team Collaboration: Thanks to the shared environment for software development, PaaS allows teams responsible for development and operations to access the required tools with ease over the internet. 
• Risk Testing and Adaptability: Due to PaaS platforms having access to various latest resources such as new OSs, enterprises do not have to invest in infrastructure to run them. This also allows them to conduct testing of new technologies with ease. 
• Faster Development: PaaS allows development teams to release their products and services to markets efficiently by speeding up the processes. 
• Less Management: As the service provider is responsible for administrative tasks such as management and update of infrastructures, enterprises can focus on other important processes. 

2. IaaS

IaaS is a type of service providing on-demand access to cloud computing infrastructure. Enterprises can manage the configuration and use this service similar to local (on-premises) hardware. Through IaaS, enterprises can access the tools required for application development. 

The hardware is accessed over an internet connection, and payment is often done on a subscription basis, while per-use basis options are also available. 

IaaS service providers offer their customers VMs (virtual machines) on shared and dedicated (unshared) physical hardware options. The servers and infrastructural resources can be operated through a graphic dashboard API, or programming interfaces by enterprises 

The main difference between an IaaS and a local IT environment is that cloud service providers are responsible for the hosting, management, and maintenance of the hardware in their data centers. 

Use cases of IaaS 

a. Recovery Planning, IoT, and AI 

IaaS can offer recovery solutions to cloud providers, eliminating the need to set up more servers than required in various locations. 

IaaS plays a facilitative role in managing and processing high volumes of data and provides infrastructural support for technologies and applications such as the Internet of Things (IoT) and artificial intelligence (AI).

b. Startups 

Due to their financial limitations, startups may not be able to invest in on-premises IT infrastructure. In this context, IaaS allows startups to access data center capabilities that are on par with that of enterprises.  

This way, they can save resources without investing in hardware or concerning management. 

c. Software development

IaaS allows infrastructure for testing and development environments to be set more efficiently in time. But depending on enterprise needs, PaaS could be more suitable for development purposes. 

Advantages of IaaS 

Unlike the capabilities of traditional IT, IaaS offers increased flexibility to enterprises and allows them to use computing resources as needed, as well as configuring them according to their traffic. 

Additionally, IaaS lets customers cut financial expenditures to a degree, eliminating the need to purchase and maintain data centers. 

As the data centers of IaaS are scattered around the globe, IaaS customers can use the closest available data center. This allows them to have access to apps and services with peak performance thanks to low latency rates. 

3. SaaS 

SaaS is a service that hosts pre-configured applications on the cloud, and the service provider manages the applications and all the infrastructure needed for enterprises, such as storage, servers, and networking.  

These services can be accessed through a browser, desktop software, or a mobile application. The payment is often monthly or annual. The users can add features, especially more data storage at the cost of additional expenses. 

Similar to the other cloud services, IaaS and PaaS, the service host manages upgrades, patches, and tasks required for maintenance. These include security and performance optimization secured through an SLA (service level agreement). 

Use cases of SaaS-based services are widespread, as many including email, cloud storage, and social media platforms use some form of it.  

At the business level, popular SaaS solutions include Sales Force Automation tools such as our SFA solution Octapull SFA, marketing software, apps improving team collaboration, graphics, and advanced video conferencing tools such as OctaMeet.

Benefits of SaaS

As SaaS providers are responsible for the management and host of the infrastructure and applications, users can start using the application and focus on their work, right after the registration process. 

The SaaS provider handles the maintenance of hardware and software, as well as the security of the server. Therefore, users have lower chances of financial risks when it comes to trying new software. 

Thanks to internet connection and browser support, users can enhance their productivity by accessing SaaS on various platforms. 

SaaS vs. PaaS vs. IaaS: Finding the Viable Solution

While SaaS, PaaS, and IaaS are not interchangeable as concepts, most mid-sized enterprises use more than one, and larger businesses use all three. Combining these solutions with traditional IT is also a common practice in industries. 

The as-a-service solution customers choose ultimately depends on the functionality and features, that align with their specific requirements and expertise.  

For instance, PaaS would not be a suitable option for an organization if its expertise or niche is not developed. Meanwhile, for the virtualization needs of companies, IaaS can fulfill this role. 

The table below illustrates the differences between the cloud service models and which features the host provides and manages.

In conclusion, PaaS, IaaS, and SAAS are cloud computing models that offer various benefits to enterprises in line with their business requirements. The use of more than one model is a common practice in industries, but choosing and implementing the most appropriate solution ultimately depends on the enterprises’ area of expertise. 

However, any of the three ‘as-a-service’ models may be valid options in some cases, and regarding these use cases, the alternatives often have to be compared based on the criteria of organizations, such as ease of management, and control the alternatives offer.