One of the biggest decisions IT teams have to make is whether to focus on on-premises infrastructure or to switch to the cloud. This choice will affect their IT costs, data security, business growth, and more, but there’s no single right answer for all businesses, so they must carefully weigh their options and needs.
If you’re trying to choose between on-premise vs cloud, it can feel like a daunting decision. However, by understanding the differences and weighing their benefits and drawbacks, IT teams can determine the best choice for their business.
With that in mind, let’s examine on-premises vs. cloud infrastructure, see their pros and cons, and help you determine which works best for your business needs.
What Is On-Premise Computing?
On-premises infrastructure refers to servers a company privately owns and controls, which are held and maintained on its own facilities. With on-premises computing, the company has more direct control over its infrastructure, including data location, applications, security configuration, and maintenance.
On-premises infrastructure is typically used by companies with highly sensitive data or strict IT compliance requirements, although it also requires physical space to store all their hardware.
What Is Cloud Computing?
Cloud infrastructure refers to infrastructure hosted by a third-party service provider and made available on an as-needed basis. With cloud computing, the provider delivers software, storage, and so on over the internet, eliminating the need for the company to store and manage everything on-site.
Cloud computing is an affordable, scalable option, making it a popular choice for businesses. Cloud computing also comes in multiple forms, including public clouds, where provider-managed resources are shared across customers but logically separated and protected through cloud security controls, and private clouds, where the system is dedicated to a single organization.
What Are the Key Differences Between On-Premise and Cloud?
Both cloud and on-premise models have their own benefits and drawbacks, which help highlight the key differences between the two, but they don’t stop there. There are several ways the two diverge, so organizations should be aware of the key differences to determine which best suits their needs.
We can break down their differences like so:
Aspect | Cloud Computing | On-Premises Computing |
Cost | Lower upfront costs, typically on a subscription or usage basis. Costs will scale with consumption. | High upfront investment in hardware, software, facilities, and setup, in addition to ongoing maintenance costs. |
Scalability | Highly scalable; resources can be scaled up or down on demand. | Limited by hardware capacity. Scaling often requires purchasing and installing new equipment. |
Security Controls | Typically a shared responsibility model wherein the provider manages infrastructure security while customers manage data and access controls. | The organization has full control over security policies, infrastructure, and data protection. |
Maintenance Responsibility | The provider handles hardware maintenance, updates, and infrastructure management. | Internal IT teams are responsible for hardware, software updates, backups, and system maintenance. |
Performance | Dependent on internet connectivity and provider infrastructure. Performance may be affected by latency for some workloads. | Typically offers predictable performance and low latency for local users and applications. |
Remote Access Readiness | Designed for remote access from anywhere with internet connectivity. | Requires VPNs, remote desktop solutions, or other infrastructure to enable remote access. |
Compliance | Many providers offer compliance certifications and tools, but organizations must ensure proper configuration and data governance. | Provides more direct control over data location, infrastructure configuration, and audit processes, but the organization remains responsible for implementing and documenting required controls. |
Best Use Cases | Rapid growth, variable workloads, startups, global collaboration, disaster recovery, and remote work environments. | Highly regulated industries, legacy applications, predictable workloads, data sovereignty requirements, and organizations needing maximum control. |
Benefits and Challenges of On-Premise Computing
With those definitions established, we can begin breaking down the pros and cons of each type of infrastructure. So, what are the benefits and drawbacks of on-premise computing?
Key Benefits of On-Premise Computing
On-premises computing provides several advantages for organizations that need the security and control it provides, including:
Full data control: Using on-premises infrastructure means having full control over your data, systems, and hardware.
Predictable costs: Because on-premises infrastructure doesn’t rely on a subscription, it’s easier to predict and manage costs.
Compliance control: On-premises infrastructure can give organizations more direct control over data location, system configuration, and audit processes.
Low-latency performance: Because the infrastructure is all on-site, there’s minimal latency when working from the office.
No dependence on connectivity: On-premises computing relies on local devices, so it can work without needing an internet connection.
Common Challenges of On-Premise Computing
Challenges of on-premises computing include:
High upfront cost: While on-premises computing can have predictable recurring costs, they follow a high upfront cost to set up the physical infrastructure and other equipment.
Ongoing maintenance: While hosted solutions are maintained and managed by the provider, on-premise infrastructure is left in the company’s hands. That means they need to dedicate IT resources to maintenance and troubleshooting, which can be costly.
Limited scalability: While hosted solutions are easy to scale, on-premises infrastructure is significantly more difficult to scale and requires substantial investments in additional equipment and space.
Risk of failure: Relying on hardware means accepting the risk of hardware failure, which can lead to extended interruptions and data loss.
Slower deployment: Setting up and deploying on-premises infrastructure can be time-intensive, and even onboarding and provisioning new users can take significant time.
Benefits and Challenges of Cloud Computing
Let’s take a look at the pros and cons of cloud computing, so we can see what it offers that on-premises options don’t (and vice versa).
Key Benefits of Cloud Computing
Cloud computing provides the accessibility, scalability, and reliability that businesses need, making it a popular choice for companies of all sizes. These benefits include:
Rapid scalability: Because cloud computing is a hosted service, it’s easy to scale as a company grows. The provider can add new seats with ease, without the organization needing to invest in additional infrastructure.
Lower upfront investment: Cloud computing doesn’t require hardware or physical space, so upfront costs are significantly lower.
Disaster recovery: Many cloud providers offer redundancy, backup, and disaster recovery capabilities, but organizations still need to configure and manage them properly.
Global accessibility: As cloud infrastructure is accessible over the internet, users aren’t restricted to a single physical location; they can access everything from anywhere with an internet connection.
Reduced IT burden: The provider manages the underlying cloud platform, which can reduce the time IT spends maintaining physical servers, storage, and facilities.
Common Challenges of Cloud Computing
There are several issues that can make it less appealing when compared to on-premises options, including:
Vendor dependency: Using cloud infrastructure means you’re relying on the provider, which means sacrificing some control.
Privacy concerns: While cloud infrastructure typically includes strong security measures and encryption, these can vary across providers, and not all companies will feel safe storing their data off-site.
Compliance: While cloud providers typically adhere to regulations, the fact that it is a third-party service can cause some concerns and potential issues, even with strong encryption.
Subscription costs: Cloud services are provided on a subscription basis, which, depending on the provider, can add up over time.
Internet dependency: Because cloud infrastructure is delivered over the internet, users depend on a reliable internet connection to access everything.
Limited customization: While on-premises solutions (and some private clouds) can be customized to an organization’s needs and preferences, most cloud services have limited customization options and flexibility.
How to Choose Between On-Premise and Cloud
There are a few factors you’ll want to consider when choosing between on-premise and cloud infrastructure.
First, there’s privacy and cybersecurity to consider. If you’re in a highly regulated industry with strict security requirements, such as HIPAA compliance in healthcare, the security and control of on-premises options may be preferable. However, it is still possible to find a cloud option with the robust security controls you need.
There’s also the question of your flexibility and scalability needs. If you’re a growing business, on-premises may be too inflexible to scale with you. Similarly, if you lack the physical space for on-premises infrastructure or want to offload infrastructure management, the cloud is the way to go.
Budgeting is another consideration. You’ll need to compare the overall costs of an ongoing cloud subscription with the upfront and maintenance costs of an on-premises option to determine which is best suited to your budget.
In short, while there is no one-size-fits-all solution, you can determine which one is right for you by seeing what aligns the most with your business, budget, and security needs.
Why Hybrid IT Is Becoming More Common
However, future needs should be considered alongside the present. As such, we need to look at growing trends as well, and in this case, that includes a third option: hybrid infrastructure.
Hybrid infrastructure is a growing trend in which organizations use a combination of on-premises and cloud computing. This allows them to keep their most sensitive data stored safely on-site, while still using the cloud for greater scalability and support.
Gartner named hybrid computing the top infrastructure and operations trend for 2026, pointing to the need for organizations to combine different compute, storage, and network models as IT environments become more distributed
Splashtop Supports Cloud, On-Premise, and Hybrid IT
Whether your infrastructure is cloud-based, on-premise, or hybrid, IT teams still need a reliable way to access, support, and manage devices across locations. That becomes especially important when employees work remotely, devices are distributed across offices, or IT teams need to troubleshoot systems without being physically present.
Splashtop helps organizations support flexible IT environments with secure remote access, remote support, and endpoint management tools.
With Splashtop, employees can securely access their work computers from anywhere (Splashtop Remote Access), while IT teams can remotely support users and devices across distributed environments (Splashtop Remote Support). For organizations that need to keep remote access infrastructure self-hosted, Splashtop On-Prem provides a deployment option that runs within the organization’s own network environment.
For teams that want cloud-based endpoint management, Splashtop AEM helps IT teams manage patching, inventory, alerts, and automation from a centralized console. This gives teams more visibility and control across endpoints without relying only on manual processes or on-site access.
Ready to simplify remote access, support, and endpoint management across your IT environment? Start a free trial of Splashtop and see how your team can securely support users and devices from anywhere.
