Understanding Your Options
On-Premise
Software runs on servers you own and maintain in your facility or data center.
Cloud (IaaS)
Software runs on virtual servers in a provider's data center (AWS, Azure, Google Cloud).
Hybrid
Some components on-premise, others in the cloud. Common for sensitive data scenarios.
Cost Comparison
On-Premise Costs
- Upfront: Server hardware, networking, installation
- Ongoing: Power, cooling, maintenance, IT staff
- Periodic: Hardware refresh every 3-5 years
- Hidden: Downtime, security incidents, scaling delays
Cloud Costs
- Upfront: Minimal (pay as you go)
- Ongoing: Monthly compute, storage, bandwidth fees
- Variable: Costs scale with usage
- Hidden: Data transfer fees, premium support, misconfigurations
Cost Reality
For small to medium workloads, cloud is often cheaper when you factor in all costs. For very large, steady workloads, on-premise can be more economical long-term.
Security Comparison
| Factor | On-Premise | Cloud |
| Physical security | Your responsibility | Provider's (usually excellent) |
| Network security | Your responsibility | Shared responsibility |
| Compliance | Full control | Provider certifications help |
| Data location | Known exactly | Region-configurable |
Control & Flexibility
On-Premise Advantages
- Full control over hardware and configuration
- No dependence on internet connectivity
- Complete data sovereignty
- Customize anything
Cloud Advantages
- Scale up or down instantly
- Access from anywhere
- Automatic backups and redundancy
- Managed services reduce operational burden
When to Choose On-Premise
- Regulatory requirements mandate it
- Data sovereignty is critical
- Existing IT infrastructure and expertise
- Very high, predictable workloads
- Air-gapped security requirements
When to Choose Cloud
- Limited IT infrastructure or staff
- Variable or growing workloads
- Remote workforce needs access
- Disaster recovery is important
- Speed to deploy matters
Hybrid Considerations
Many organizations use hybrid approaches:
- Sensitive data on-premise, applications in cloud
- Production on-premise, development in cloud
- Core systems on-premise, burst capacity in cloud
Our Recommendation
For most small to mid-sized businesses, cloud hosting offers the best combination of cost, reliability, and operational simplicity. We typically recommend AWS or Azure, with the specific choice depending on your existing technology stack and requirements.
That said, we can build software for any hosting environment and will help you choose the right approach for your specific situation.
Need Infrastructure Guidance?
We can help you evaluate options and choose the right hosting approach.
Discuss Your Needs