A Comparison of On-Premise vs. the Cloud

Most organizations are dependent on fast, accurate, and reliable information that their ERP systems provide.   Microsoft Dynamics GP and Microsoft Dynamics CRM are just two of these that may be hosted On-Premise or in the Cloud.  With this in mind, I wanted to compare two different installation models:  On-Premise Installations vs. Cloud based installations.

What are On-Premise and Cloud based installations? 

On-premises, or on-prem, is software installed and run on computers on the premises of the organization using the software, rather than at a remote facility.  While Cloud software, commonly known as a “software as a service” or “computing in the cloud” is hosted somewhere on the Internet.

On-Premise vs. Cloud

The decision to choose either On-Premise or Cloud varies dependent on each organization.  One of my favorite lines passed around on this subject is “To Be or Not to Be on the cloud”.  Many factors affect your decision to choose On-Premises or the Cloud, but key considerations are:




Organization Profile Organizations who want to invest in an affordable solution capable of growing with them and want the flexibility of anywhere, anytime access without investing in IT infrastructure. Organizations with the ability to make the required upfront investment to purchase, implement, and maintain the software. Minimum timeframe for an On-Premise solution should be 5 years.
True Cost of Ownership
Cost to Implement / Migrate Implementation expenses tend to be less than On-Premise solutions.  Installation, infrastructure, and some configuration are already completed. Implementation expenses tend to be more than Cloud solutions.  All hardware, software, and maintenance are maintained in-house.
Post Implementation Support Business process consulting as needed. Software upgrades every 12 – 24 months.  Technical support and business process consulting as needed.
Maintenance License fee with a predictable payment covering infrastructure and software support, daily back-ups, and software upgrades. Upfront purchase of License fee with annual maintenance renewals.
Flexibility and Expandability:
Integrations and Customizations Basic “configuration” and minor customization and Integrations. Not for heavy customizations. Flexible with customizations and integration.  Appropriate for organizations with large customization requirements.
System Upgrades and Enhancements The system is always up-to-date.  Business process consulting as needed. Software upgrades every 12 – 24 months. Business process consulting as needed.
Hardware and Software Requirements Must have a reliable Internet connection with adequate bandwidth. In-house maintenance of Traditional IT components including server hardware and software, data backups, storage, disaster recovery, and remote access and network connectivity.
Required Infrastructure Investments

Limited or no internal IT resources.

Established IT support staff with a Disaster Recovery plan and solid security strategy.

    Accessible Bandwidth
    Backup and Recovery
    Performance and Accessibility
Other Considerations:
Deployment Speed Varies depending on the size and scope of the project, but implementation time tends to be less than On-Premise solutions since installation, infrastructure prep, and some configuration are already completed. Varies depending on the size and scope of the project, but implementation time tends to be a bit longer and more involved than a comparable cloud-based implementation.
Interface – GUI Web technology that enables a familiar interface. Mature technology with a traditional Windows interface (GUI).
Mobile Access Via the Internet or mobile device Client server for local access and/or Terminal Server or Citrix for remote access.

The choice between an On-Premise installation and Cloud installation is a big decision that will affect your organization many years into the future.

To talk more about whether you should take your solution to the cloud, or keep it on-prem, call Andrew at 301.360.0001 or email sales@ktlsolutions.com

 ANDREW FRASER | Senior Business Software Consultant

As a Senior Business Consultant, Andrew is responsible for the implementation and support of CRM, GP, and other Microsoft products assuring that our solution scoping, architecting, and delivery meet and exceed customer expectations. He helps clients analyze their current business processes and provide them with process improvements. During his time at KTL, Andrew has built lasting relationships with clients by understanding their business needs and provided value by leveraging their existing resources. Andrew has more than nineteen years of experience in implementing business software for a variety of industries including service, government, distribution, not-for-profit and manufacturing.  He graduated with a Bachelor’s Degree in Math with concentration in Computer Science and a Bachelor’s Degree in Business Marketing from St. Andrew’s University in Laurinburg, North Carolina.  His experience includes helping companies embrace technology to fulfill their organizational needs and creating innovative solutions using CRM, GP and other Microsoft products.

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