Cloud Computing vs On Premises Solutions: Cloud Deployment Models

  • Published on : November 2, 2022

  • Read Time : 14 min

  • Views : 8k

Cloud Computing Vs. On Premises Solutions

In today’s tech world, businesses are having a great number of options when it comes to selecting data storage options. Among all the options, businesses are inclining toward cloud infrastructure to save themselves from the stress of handling and maintaining infrastructure and data security.

One of the common cloud choices in the ongoing market is cloud software and on-premises. Both the cloud models are quite effective in delivering services and serving benefits to their users. As a result, it has become quite an overwhelming experience for businesses to land on the right decision that is suitable for their business.

So, to answer your queries and resolve your concern about going with the right choice, we are formulating a comparative study on cloud and on-premises i.e. cloud computing vs on-premises. Continue reading, if you are looking for suitable guidance for your business.

What is a Cloud Deployment Model?

A cloud deployment model is a systematic and compatible combination of hardware and software that facilitates the accessibility of data in real time through the internet. It also determines who has the ownership and control over the cloud infrastructure along with its nature and purpose.

Businesses of all sizes and verticals are rapidly inclining to cloud computing services model to present their data, services and core applications. Businesses are adopting cloud infrastructure to minimize the risk of data loss, minimize security risks and increase flexibility.

There are majorly 3 types of business system deployment models that are popular among organizations. Let’s discuss them in brief to understand the concept.

Different Types of Business System Deployment Models

1. Cloud Infrastructure/Public Cloud


It is a commonly adopted cloud model among organizations, where the cloud service-providing organizations have to take care of the quality and size of hardware. The service provider owns the hardware and other supporting network infrastructure to provide much-needed services to its clients.

In Public Cloud Infrastructure, the service provider is liable to take care of data center management, infrastructure maintenance, and physical security. It is so, because the service provider shares its infrastructure with multiple customers, ensuring to separately maintain each customer’s data.

Additionally, the service provider had to take care of data security by offering multi-layer security controls. The companies majorly prefer Amazon AWS, Microsoft Azure, Google Cloud, Oracle Cloud, and Alibaba Cloud as the Public Cloud Infrastructure service provider.

2. On-Premises Solutions/Private Cloud

As the name suggests, the private cloud infrastructure is designed and only used by a single organization. It is exactly the opposite of the public cloud deployment model. The service provider doesn’t require to share their hardware with any outsider. It is a kind of in-organization cloud service that is accessible and maintained only by the in-house techies.

The on-premises or private cloud systems are quite expensive to build and manage as require a dedicated team of resources and hardware which demands capital expenditure in acquiring and maintaining them. On the other hand, the major advantages private cloud serves are high privacy, security and greater control of the data and users.

The private clouds typically maintain security by integrating sophisticated firewalls that offer access-only permission to authorized personnel.

3. Hybrid Infrastructure

It is quite evident with the name hybrid infrastructure – is a combination of two different services i.e. public cloud and on-premises or private cloud. The main purpose of hybrid cloud infrastructure is to avail the benefits of both cloud deployment models. The hybrid cloud architecture typically includes an Infrastructure-as-a-Service (IaaS).

The hybrid cloud model allows to store frequently used and sensitive data in the private or on-premises cloud, whereas, other data for backup and archives are stored in the public cloud. This type of model is very apt and serves the best benefits in healthcare, finance and government domains. These industries require to maintain the sensitivity of the data by categorizing crucial data on-premises while allowing less-sensitive data on the cloud or public cloud infrastructure.

The hybrid infrastructure minimizes the data security risks in the public cloud and provides virtual storage by offering a public SaaS service model. The interconnected environment of both the cloud infrastructure allows the users to place their sensitive data as per their requirements.

Related Reading: How to Choose A Trustworthy Cloud Service Provider?

Three Service Models of Cloud Computing

To land on the most suitable cloud deployment model for your business, many points needed to be considered. Before that, let’s understand the concept of all the 3 service models of cloud computing i.e. Software-as-a-Service (SaaS), Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS).

1. Software-as-a-Service (SaaS)


The SaaS services can be accessed directly over the internet, it doesn’t require prior installation and can be availed at minimum subscription charges from any part of the globe. Hence, SaaS services are easily accessible to a majority of users and the services are managed centrally.

The centralized management of software and services allows top-quality security, software upgrades, etc. that can be performed on the user’s device after their permission only. There are a variety of SaaS products available in the market, such as Customer Relationship Management (CRM), Billing & Invoice Systems, Human Resource Solutions, Help Desk Applications, etc.

Some of the well-known SaaS solutions providers in the market are, Google G Suite, Dropbox, Salesforce, Microsoft Office 365, BigCommerce, Cisco WebEx, ZenDesk, etc.

2. Infrastructure-as-a-Service (IaaS)

The Infrastructure-as-a-service cloud model allows service providers to lease or rent the servers to multiple clients. The users can work over any operating system or software without having any additional maintenance and operational cost of servers.

Clients can scale up or down the IaaS server size as per their requirements and can avail guaranteed Service Level Agreement (SLA) in both scenarios. IaaS is an apt choice for companies, such as startups and small to medium-scale companies who experience a shortage of investment in arranging hardware to build huge server rooms.

Additionally, they aim to scale the business at a rapid pace and beat the market competitors. Some of the major IaaS service providers that offer exceptional services are Amazon Web Services (AWS), Google Compute Engine (GCE), Microsoft Azure, IBM Cloud Private, IBM Cloud Virtual Servers, DigitalOcean Droplets, Rackspace, etc.

3. Platform-as-a-Service (PaaS)

Infrastructure-as-a-Service (IaaS)

PaaS cloud service is usually preferred in organizations when your project demands multiple developers and vendors. This service makes it easier to build a customized solution by rending or subscribing to all the required computing and networking resources. It ultimately eases the app development process and helps to limit the development cost of companies.

In simple words, the PaaS cloud computing model allows companies to build, run and manage the app development progress without investing a huge amount in arranging the required size of IT infrastructure. This makes the development, testing, and deployment of applications an easier and faster process.

PaaS services make everything possible and handy for organizations to innovate and scale their project. Some of the renowned PaaS service providers in the market are AWS Elastic Beanstalk, Windows Azure, Google App Engine (GAE),,, OpenShift, etc.

Difference Between Cloud Infrastructure and On-Premises Solutions: On-Premises versus Cloud Infrastructure

Scalability, accessibility, and security are all advantages of cloud infrastructure, and maintenance expenses are low. Complete control over data and software is offered by on-premises solutions, but they come with a hefty upfront cost and continuous maintenance costs. Make a decision based on your scalability demands, control requirements, and budget.

Cloud Infrastructure/Public Cloud On-Premises Solution/Private Cloud
The service provider is responsible for the system maintenance on their server. However, the deployment of the data takes place on the third-party server. The company can access the resources from the cloud 24×7. The company is the service provider here and only an individual can use or access the private cloud. The deployment is done in-house using the company’s resources and is responsible for its maintenance as well.
In a cloud computing environment, the ownership of data is not transparent. Despite sharing the data and the encryption keys with the third-party provider, during the downtime, the ownership and accessibility remain a concern. The enterprises enjoy complete control and privacy over their system. This is why most of the big companies prefer to maintain their private database.
There is the minimum scope of any hardware, software, or infrastructure failure and breach in data security. The clients experience multiple disasters and redundancy protocols for data security. To maintain the secrecy and security of data, such as in banking or government platforms, the data cannot be shared. For such domains, an on-premises cloud is the best solution.
Cloud solutions have to follow specific compliance policies, which is not safe for government domains, therefore the govt. companies never choose cloud-based or public infrastructure. In contrast to that, the companies that comply with govt. policies to safeguard people’s data and limit data sharing and access. For such companies, the on-premises cloud serves best.
For small size businesses, it is a very pocket-friendly cloud option with a nominal subscription fee. The setting up and run time is quite quicker and cheaper. The individual maintenance and operating cost of on-premises cloud are high and demand regular investment. It doesn’t end with the initial setup investment.
The cloud size, server resources, internet usage and bandwidth are highly scalable. All this becomes handy due to the presence of virtual servers and resources which can be conveniently resized. Cloud scalability is pretty tedious, as the existing resources are already in use and to scale the storage – buying & deploying new resources is required. All this is not an easy task and only a few cases support convenient scaling.

On-Premise vs Cloud: Pros and Cons

On-Premises Solutions/Private Cloud


  1. You own full control over your data, hardware and software platforms. So, you can decide what and when to configure, upgrade and change required in the system.
  2. Data can be accessed easily with any device via. internet and authorized users can even access data without an internet connection.
  3. Can be used instantly once you sign up, no further investment is required.
  4. Being an owner and a responsible person for the server, you are solely accountable for implementing required security firewalls or measures to keep the data safe and secure.


  1. On-premises cloud implementation is quite expensive, as it requires sufficient purchasing of hardware and even demands more to scale the storage space.
  2. It also involves additional maintenance costs to keep software’s up-to-date and ensure a seamless response.
  3. The implementation of an on-premises cloud is time-consuming because it requires the installation of software on the server and every computer system.
  4. The in-house tech experts are liable for taking care of any tech issues.

Cloud Infrastructure


  1. The cloud services are easily scalable i.e. on the requirement the customer can increase the server capacity.
  2. The user can access data or applications from anywhere and anytime via Internet connectivity.
  3. Can limit the expense by defining cloud storage and paying monthly charges for upgrades, software licenses, daily backups, and support.
  4. The cloud infrastructure offers its security, to save its customers from worrying about data vulnerability.
  5. The cloud infrastructure is quite eco-friendly and energy efficient by saving businesses from powering and maintaining their on-premises servers.


  1. It requires consistent internet connectivity to access data from the cloud.
  2. It follows standard software to support diverse users, and thus can only be customized to a limited extent.
  3. Initially, cloud services are cheap as compared to the on-premises cloud, but in the long-term cloud services are quite an expensive investment for any organization.

Wrapping Up!

The pace with which organizations are shifting towards cloud infrastructure, it is quite evident that they are trusting the services they are getting along with data security. But, the major point that needs to be considered is to select a reliable and genuine cloud service provider.

Thus, research the market, perform comparative analysis, and then go with it. Because if your cloud service shuts down then your business is at a huge risk. Apart from that, to migrate your data to the cloud, your business requires expert hands to perform it with accuracy and ensure not to lose any data.

Therefore, to facilitate your requirements, Codiant can be the right service provider and we are ready to be your trustworthy cloud migration partner.

Execute A Successful Cloud Migration with Codiant. We Are Your Right Cloud Partner.


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