At a time when cloud technologies are dominating, the question is often: Is On-premises Still relevant at all? Despite the trend towards the cloud, many companies continue to rely on local IT infrastructures and even experts often do not recommend a purely cloud-only strategy. But why?
On-premises solutions offer full control over data and systems, which is particularly crucial for companies with high security and compliance requirements. At the same time, however, they also present challenges — from high investment costs to ongoing maintenance costs. However, depending on the scenario, the total cost of ownership can even be cheaper than running the same infrastructure in the cloud of one of the hyperscalers.
In this article, we'll take a detailed look at On-premises systems, explain the technical basics, analyze the Pros and cons and compare it with Cloud and hybrid solutions. The aim of the article is to provide companies with guidance and approaches to determine when On-premises is the right choice for your company — and when not.
The most important things in brief
- On-premises means: IT infrastructure is operated entirely in-house.
- Offers maximum control about data, systems and security — ideal for high compliance requirements.
- High initial investments and ongoing maintenance costs require a well-organized IT department.
- hybrid models are gaining in importance, as decisions can be made individually depending on the workload.
Whether unified endpoint management on-premises, hybrid or in the cloud — we provide you with honest advice and find the right strategy for your IT future.
1. What does on-premises mean?
The term On-premises (also On-Prem or more rarely On-premise called) means an IT infrastructure in which Software and hardware within your own company be operated. Instead of using external data centers or cloud services, Servers, networks and applications directly in the company's own premises installs and manages.
A company can decide for itself whether the IT infrastructure is maintained internally or an external IT service provider is responsible for maintenance and operation.
Typical components of an on-premises system
A working On-premises system requires a well-organized IT department, since both Hardware and software are regularly maintained, updated and secured must be.
2. Benefits of on-premises solutions
Despite the ongoing cloud boom, many companies continue to rely on On-premises systems, often in a hybrid infrastructure in addition to the cloud. The reason? They offer decisive advantages, in particular with regard to Safety, Control, and Independence.
Full control over the IT infrastructure
On premises, the entire IT infrastructure in your own hands. Organizations have full control over:
- Hardware and server capacities — no external dependencies
- Software updates and system adjustments according to your own needs
- Data storage and storage within company boundaries
This control enables granular individual adjustment of IT to specific business processes.
Higher data security & data protection
Many companies rely on On-premisesto strict Privacy policies and compliance requirements to fulfill. Since all the data stored exclusively within the company , there is no risk of storing sensitive information with external cloud providers.
Companies also benefit from highest safety standardsbecause they have complete control of Encryption, access rights, and security policies keep — provided that the on-premise infrastructure is hardened accordingly.
Another advantage is the reduced attack surface, as there is no dependency on cloud services and potential external threats are minimized. In case of doubt, it is possible to operate an on-premises infrastructure completely or partially without a connection to the Internet.
A special variant of this is so-called air-gapped infrastructures, which are physically separated from any other networks or Internet access. Especially for Industries with high safety requirements, like that Healthcare, finance, or government, on-premises is a preferred solution for protecting sensitive data in the best possible way.
No reliance on third parties
When it comes to cloud solutions, the availability often from the respective vendors From what companies are in a certain subjection brings. In contrast, offers On-premises With proper maintenance, a stable and independent IT infrastructure, which is not influenced by external service providers.
Companies don't have to worry about Cloud outages or a provider's insolvency because the entire IT is operated locally. They also keep the full control over licenses and software usagewithout being bound by the pricing policy or contract terms of a cloud provider. Another advantage is the Cost transparency, as there are no ongoing fees for cloud services. This independence Can in the long term to significant cost savings lead and give companies more Flexibility in designing your IT strategy.
3. Disadvantages and challenges of on-premises
Although on-premises offers many benefits, there are also a few Challenges and drawbacks, which companies must consider. Especially the Costs, maintenance, and scalability are decisive factors.
High investment and operating costs
The operation of a On-premises infrastructure Requires a significant initial investment, as companies have the entire Buy hardware and software yourself must. This includes powerful servers and storage solutions, which serve as the basis of the IT environment.
In addition, licensed software and operating systems be purchased to ensure smooth operation. Even the Network and security infrastructure plays a crucial role in ensuring a reliable and secure environment.
In addition to this one-time costs Fall sequentially operating costs on. This includes Maintenance, Power, Cooling, and IT Staff, which are necessary for smooth operation. Compared to the cloud, where many of these aspects are taken over by the provider, these running costs can be Significantly higher on-premises fail.
Cloud providers such as microsoft or AWS often provide total cost of ownership (TCO) computers to calculate the investment and operating costs of on-premises vs. cloud. However, these are only an approximation — there are many variables to consider. Experienced IT service providers can help compare cloud vs. on-premises.
Maintenance & IT resources required
Since the entire IT infrastructure managed internally will, the company is fully responsible for their Operation and safety. This includes the regular Installing updates and patchesto ensure system stability and protection against security breaches.
A continuous Monitoring and rapid troubleshooting are essential to avoid failures and ensure high availability. Reliable must also Backup and disaster recovery systems be implemented to prevent data loss and to be able to react quickly in an emergency. These tasks require a well-trained IT team with the appropriate expertise to ensure a secure and seamless IT environment.
Scalability and flexibility compared to the cloud
During Flexible and scalable cloud services as needed Are, does growth teach On-premises infrastructures often with challenges. If more computing power or storage space is required, you must first new hardware purchased and installed become. Since the existing Server capacities limited are, does every extension require a predictive planningto avoid bottlenecks.
In addition, they are increasing Costs directly with the required service, as investments in new servers, network infrastructure and maintenance are required. These factors make On-premises for companies with highly fluctuating resource requirements often less flexible than cloud solutions.
4th comparison: on-premises vs. cloud vs. hybrid
Today, companies are faced with the choice between On-premises, cloud, or hybrid solution. Each model has specific advantages and disadvantages, depending on the individual requirements of Cost, Security, Scalability, and Control.
Comparing the three models
When is which solution suitable?
On-premises:
- When maximum control over data & IT systems is required
- With high data protection & compliance requirements
- For companies with stable IT needs without high scaling requirements
- For large companies that achieve large economies of scale when operating their own data center
Cloud:
- When low investment costs are desired and this may justify a higher total cost of ownership
- For flexible scaling and global access
- With reduced IT maintenance costs
Hybrid:
- For companies that Keep core systems on-prembut want to use cloud services
- When Flexibility & security combined should be
- With Transition models from on-premises to the cloud
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5. Conclusion: When is on-premises the right choice?
Ob On-premises, cloud, or a hybrid solution The best choice depends on the individual requirements of a company. On-premises systems provide maximum control over Data, infrastructure, and security, which is particularly suitable for companies with strict data protection and compliance requirements is beneficial.
However, they are high initial investments as well as the current Maintenance, IT staff, and energy costs Not to be underestimated. In addition, the Scalability and flexibilitythat offer cloud solutions.
On-premises is therefore particularly suitable for companies that have a stable, independent IT infrastructure need and are prepared to accept the higher administrative costs. Who against dynamic IT resources, lower investment costs and less maintenance preferred, is with a Cloud or hybrid solution often better advice.
Ultimately, the decision is extremely individual—both at company level and at individual workload level. The cloud is ideal for some applications, while on-premises remains the better choice for others. That is precisely why the hybrid model by, because it allows to decide flexibly depending on the workloadWhere which IT operation makes the most sense.
Dorian has been involved in corporate and IT strategy since 2011. Due to the endpoint security deficiencies of many companies and the information overload, he developed the endpoint strategy. Dorian is co-founder of the “Endpoint Management” expert group at IAMCP e.V.
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