Have you ever heard the words “on-premises” and “cloud compute”? On-premises and cloud compute are often talked about in comparison, and both have advantages and disadvantages.
On-premises refers to the form of operating servers in-house, and cloud refers to the form of using external servers, but there are various other differences, not just server operations.
This article explores all aspects of the difference between on-premises and cloud compute. It also explains the differences in development and how to choose a development environment, so if you are considering development, please refer to it.
What is on-premise
Word meaning
Premises originally meant “premises” or “buildings.” Derived from the word premises, On-Prems means “on-premises.”
On-premise refers to a form in which the servers, lines, software, etc. necessary for system construction are installed in-house or in a data center, and the system is constructed and operated in-house. By the way, on-premises is often called by the abbreviation of “on-pre”.
Advantages of on-premises
There are two advantages to using on-premises.
Flexible and easy to customize system
With on-premises, you can secure everything from hardware to software in-house, so you can flexibly customize your system. In addition, since it is easy to coordinate with in-house systems, it is possible to customize the system according to the characteristics of the company.
High security safety
On-premises is operated using our own network system. In other words, on-premises server users are limited to within the company.
Therefore, using it within a limited network makes it difficult for a third party to enter, making it possible to strengthen security. Personal information on EC sites can also be stored in a safe place.
Disadvantages of on-premises
The disadvantages of using on-premises are the following two.
High initial cost
With on-premises, you need to prepare your own IT equipment such as servers and software, so the initial cost is high. In addition, maintenance costs (running costs) required for operation, such as server room management costs and personnel costs, are also required. In the unlikely event of a breakdown, you will have to bear the expense of replacing the equipment yourself.
Post-purchase asset management required
For on-premises, you need to manage your own assets after purchase. Since everything from construction to operation is done in-house, it is necessary to secure human resources with specialized knowledge. Another disadvantage is that you have to deal with problems such as network failures on your own.
What is cloud compute
Word meaning
Cloud is a word that means “virtual infrastructure on the Internet”. Unlike on-premises, this is an operational form in which the IT equipment required for the IT system is not owned by the company.
Instead of storing data on terminals such as PCs and smartphones, storing and operating it in a virtual space (server) on the Internet is called “cloudification”.
Cloud compute type
Cloud compute is generally categorized into three categories: SaaS, PaaS, and IaaS. The cloud development environment is mainly in the area of “PaaS”.
There are also two types of cloud compute: public cloud and private cloud.
Public cloud is a form of open cloud services that anyone can use. Google, Yahoo!, Amazon, etc. are representative examples of public clouds, and are characterized by the fact that an unspecified number of people can share services.
A private cloud is a form of cloud service in which a company or individual builds a dedicated environment. IBM and NEC are representative examples of private clouds, and they are characterized by the ability to customize and control service content.
Benefits of the cloud compute
The benefits of using the cloud compute are:
Can keep costs down
In the cloud compute, initial costs can be kept low because there is no need to purchase a system required for a server environment such as on-premises. In addition, the cloud billing system is a “pay-as-you-go” system in which you are charged only for the amount you use, so if the amount used is small, it will lead to cost reduction. Since there are no server management costs, you can reduce costs in management and maintenance costs.
Easy to install and start using
You can start using the cloud compute smoothly by making a contract with a distributor. If you issue an account and complete the initial settings, you can start using it on the same day in some cases.
In addition, the terminals to be used are not limited to computers within the company, but can also be accessed from smartphones and computers outside the company. Since you can save the trouble of moving data, you can save the trouble of using USB memory or copying. Server maintenance is unnecessary, so it is smooth in terms of management.
Highly scalable
Another advantage of the cloud compute is its high scalability. Since the settings can be changed on the web, it is possible to make changes according to the environment, such as increasing the number of servers to be used. For example, even if the number of accesses to one site increases intensively, the server specs will automatically increase temporarily, so you can avoid the server from becoming heavy.
For on-premises, it is necessary to build a server to increase the specs. So scaling on-premises is not as easy as in the cloud compute.
Disadvantages of cloud compute
The disadvantages of using the cloud compute are:
Free customization is not possible
The disadvantage of the cloud compute is that it is less customizable than on-premises. On-premises can be customized according to your company to build the system from the first stage. However, the cloud relies on the services provided by the seller, limiting the scope of customization that can be done in-house.
Long-term costs can be higher
As I mentioned in the merits of the cloud compute, most billing systems are based on a monthly pay-as-you-go billing system in which the amount varies according to the amount of usage. In this case, the higher the site or system usage, the higher the cost.
In the short term, the cloud compute has a lower introduction cost and lower labor and time costs for maintenance. However, it should be noted that in the long run, the costs can be very high.
Public clouds such as GCP can simulate usage charges. If you are considering using it, you may want to calculate it once. The article on the calculation method regarding GCP is described below for reference.
Differences between on-premises and cloud compute
Initial investment
In the case of on-premises, it is necessary to prepare everything in-house, and it is not uncommon for costs to be in the millions of units.
On the other hand, the cloud compute does not require the purchase of servers or system development in-house, so initial costs can be reduced. Therefore, it can be said that the ability to start development with a small investment is a great advantage of the cloud.
Cost accounting
In the case of on-premises, development environments such as servers and networks are recorded as “assets”, but cloud compute can be processed as “expenses”.
Therefore, by maintaining the development environment in the cloud, you can also enjoy benefits in terms of the company’s accounting process.
Construction lead time
In the case of on-premises, the system is designed and developed from scratch, so it takes several months to start using it.
On the other hand, the cloud compute uses services that are already complete, so you can start immediately after introduction. In the world of business, speed is the key, so one of the big advantages of the cloud is the ability to smoothly set up a development environment.
Customizability
On-premises has all the development environments in-house, so it can be flexibly customized according to individual circumstances.
On the other hand, the cloud is a form of using completed services, so individual customization is not good. There are some services that can be customized, but there is a limit and it is not possible to realize the details.
Therefore, cloud compute development is unsuitable if you want to proceed with development while flexibly customizing it according to your company’s requirements. In that case, you should consider on-premises development.
Security
With on-premises, you can maximize the security of your development environment to suit your company’s requirements. Of course, it costs more, but you can proceed with development in the most secure environment.
On the other hand, the cloud compute greatly depends on the security requirements of the services used. Additional security measures are possible, but less customizable than on-premises.
System linkage
For the same reason as customization, the cloud compute also limits integration with in-house systems. Whether or not it can be linked with the in-house system used by your company depends on the specifications of the service you use.
When developing in a cloud environment, in cases where system linkage is required, it is recommended to check the availability of system linkage in advance. Of course, if it is on-premises development, system cooperation can be done freely.
Troubleshooting
Let’s think about what happens when a failure occurs due to the effects of a natural disaster or the like. In the case of on-premises, it is necessary to handle all the cause identification and recovery work in-house.
On the other hand, in the cloud compute, the service provider handles a series of responses, so there is no need to use your own resources in the event of a failure. However, there is a disadvantage that it is difficult to obtain real-time information because it is necessary to wait for contact from the cloud service provider to identify the cause and the prospect of restoration.
How to choose a development environment
Suitable for on-premise development
In cases where complex customization is required, development in an on-premises environment is suitable. Since the cloud cannot be customized flexibly, it is necessary to proceed with development that meets the company’s requirements on-premises.
On-premise development is also recommended if you want to increase the security of your development environment to the utmost limit. On-premises can be freely customized in terms of security, so you can implement various security measures until you are satisfied and improve safety.
However, it is important to fully understand the burden of on-premise development, such as the high initial investment and handling of failures, before setting up the development environment.
When cloud compute is suitable
Cloud compute is suitable for companies that want to reduce initial investment. There is no need to prepare an expensive server or a high-quality network in-house, so you can easily start development.
In addition, the cloud provider will handle all maintenance, operation, and disaster recovery of the server. Therefore, cloud development is recommended for companies that do not have sufficient resources.
In addition, if you want to increase the development scale, you need to review the development environment and purchase new equipment on-premises, but with the cloud, you just need to purchase additional resources. If you want to scale freely according to your situation, you should choose cloud development.
Summary
In this article, we explained the differences between on-premises and cloud from various perspectives including development. Did you understand how to choose the development environment that suits your company?
Choose on-premises development if you want to achieve high customizability and strong security, and choose cloud development if you want to achieve flexible scale while reducing initial costs and operation man-hours.
The important point is to specify your company’s priorities in advance and select a development environment that meets your requirements. Please refer to this article to set up the best development environment for your company.
