There are many different factors that a company must consider to keep its data secure and accessible to its employees. During Covid-19, many organizations had to adapt to online resources so that employees could work from home. But what should you consider when deciding whether cloud or on-premise data storage is right for you? In this blog, you’ll learn what matters in this decision and what the key differences, advantages, and risks might be.
Project Management Software On-Premise vs. Cloud:
As mentioned above, it’s no surprise that cloud computing has gained popularity (accelerated by the pandemic). Its appeal lies in the newly found flexibility it offers businesses, ranging from saving time and financial resources to improving scalability, growth, and agility.
This stands in contrast to on-premise software, which is installed on a company’s own premises. Here, companies have their own secure firewalls (a feature where many older organizations take the view of “if it ain’t broke, don’t fix it”). Furthermore, various on-premise applications are reliable, secure, and provide a sufficient level of control that clouds often cannot offer to the same degree. IT decision-makers in companies agree that on-premise and legacy systems need to be used in conjunction with new cloud applications. This is done so that the company keeps up with the times and doesn’t fall behind with inadequate software practices, and — more importantly — so they can achieve their ultimate business goals through the use of cloud software.
On-Premise Software Deep Dive:
Regardless of whether a company chooses to store its applications such as its project management tools in the cloud or keep them on-premise, data security remains an absolutely non-negotiable criterion. For certain companies operating in highly regulated industries, storing data on-premise may be the only available option. This has its advantages, as it’s certainly reassuring to know that your data resides on your own servers and within your own IT infrastructure. All of this contributes to peace of mind.
However, there are a few notable disadvantages to using on-premise storage. First, it certainly comes with management and maintenance costs. These expenses ensure that all licenses and solutions run smoothly, and these costs can have a significantly greater impact than the costs of cloud computing environments. Additionally, the initial setup costs for an on-premise environment require sophisticated in-house hardware, software licenses, integration capabilities, and IT staff to provide ongoing support and manage any issues that may arise. This excludes any maintenance that might be required when hardware elements malfunction or break down, etc.
Key Differences and Things to Consider: On-Premise vs. Cloud
As established above, there are some differences between cloud and on-premise environments that should be considered. It’s important to note these factors and see what works best for your specific company to ensure that your business requirements are fully met.
1. Cost: On-Premise vs. Cloud
On-Premise: For organizations that want to host their own software “in-house,” there is additional responsibility for ongoing maintenance, energy consumption, physical office space, and other applicable insurance. This can result in significant costs for an organization just to protect its data and software.
Cloud: Organizations that want to use cloud management systems are only responsible for the cost of the resources they consume. There would be no maintenance costs, only the costs for how much is consumed in a given time period.
2. Control: On-Premise vs. Cloud
On-Premise: When a company uses an “in-house” environment for its data and software, it likely aims for a high level of control. This is made possible through the use of on-premise software, and companies in highly regulated industries with massive data protection concerns are typically satisfied with this particular system. They are often reluctant to switch to cloud software due to concerns about data security.
Cloud: A key element of control regarding cloud computing comes into play during decision-making. The concern lies in data ownership when it is hosted by a third party. Should something go seriously wrong, how will you remain accountable when the unexpected happens and the server goes offline? Access to data can be disrupted when the host experiences technical difficulties, and that’s something organizations are not willing to compromise on.
3. Security: On-Premise vs. Cloud
On-Premise: This question of security is closely related to the level of control an organization needs when it comes to its data. Companies that hold sensitive information (especially in the medical, government, or banking industries) must ensure an extremely high level of security at all times. This is especially true given the ever-increasing cyberattacks on large organizations. Therefore, despite the interest in cloud data, the risk of something going wrong is too great to bear, and despite the higher costs associated with on-premise data and software, it makes more and more sense for these sensitive industry members.
Cloud: It’s no secret that security concerns are a massive issue when it comes to deciding whether to use cloud computing or not. Cloud breaches and cyberattacks keep making headlines with devastating effects on large and small organizations alike. But the security of your own data isn’t always one hundred percent guaranteed either. Hard drives with sensitive information have been known to go missing, and even fires and other disasters can reduce companies with “in-house” hosting plans to rubble. The security of both methods is no guarantee. That’s why a mix of these two options may be the best solution.
4. Deployment: On-Premise vs. Cloud
On-Premise: Resources are deployed internally when an organization uses an in-house system. The IT infrastructure is therefore responsible for maintaining all related processes for the specific organization.
Cloud: Naturally, there will be different forms of cloud computing, such as public cloud, private cloud, and hybrid cloud. Nevertheless, there are fairly uniform methods for deployment — meaning access to the applications you need should be based on demand and usage.
5. Compliance: On-Premise vs. Cloud
On-Premise: Most organizations are subject to various forms of regulatory oversight depending on the industry they operate in. Therefore, it is always imperative that organizations fully understand and comply with these regulations, including those related to data security and on-premise regulations.
Cloud: Companies that choose to use cloud computing models must always fulfill their due diligence and ensure that their third-party host is always compliant with the legal regulations mandated in their industry. Sensitive information must always be secured, and the privacy of customers, partners, and employees must be guaranteed.
Hybrid Cloud Solutions
As you’ve probably already guessed, there are risks that you ultimately have to take when choosing one data management solution over another. Security considerations are sometimes weighed against cost factors, etc. It really all depends on the specific needs of the company. Therefore, a hybrid solution is often seen as the best option — even the best of both worlds. A hybrid solution essentially uses a range of deployment models, from on-premise to cloud (private and public). A hybrid cloud solution is becoming increasingly popular in today’s world, especially since Covid-19 had a massive impact on on-site work and promoted a massive shift online.
Current Solutions for Cloud and On-Premise Project Management Software
Let’s take a look at which project and task management tools are currently offered for the cloud and/or for on-premise.
On-Premise Project Management Tools
- Allegra
- Open Project
- Bitrix 24
Cloud Project Management Tools
- Meistertask
- Trello
- Freedcamp
- ClickUp
- Bitrix24
- awork
- Jira
- Wrike
- OpenProject
- Allegra
- Monday
- Asana
- Bitrix 24
Conclusion
As we can see in this comparison, only three project management solutions offer both cloud and on-premise hosting. If you’d like to learn more about Allegra and why Allegra is the most comprehensive project management software on the market, book your free live webinar here: Allegra free live demo.
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Gabriella Martin
Editor and Writer
Gabriella Martin is a Yale University graduate and holds a Master's degree in German Literature from the University of Tübingen. She loves explaining complex things in simple terms.
