Post By First Internet on September 22, 2021

The Benefits of Cloud vs. On-Premise: Is there a difference?

An image of a cloud over a laptop

In the space of the past 20 years, cloud computing has become the go-to choice for provisioning not only enterprise software, but also consumer software suites like Microsoft Office 365.

The cloud has turned software into a service, enabling seamless updates, pay-as-you-go billing and previously inconceivable scalability.

However, many businesses still prefer to have their software physically installed on their own machines, on their own premises.

So, what are the differences between cloud and on-premise software, and which is better?

Setup cost

The first difference you’re likely to encounter is the setup cost. Installed software normally requires you to buy the software itself, as well as a user licence for each machine you want to run it on.

In comparison, cloud software is typically supplied as a service. There’s a subscription fee and you receive a certain number of user licences in return.

Some of the key differences here include little to no upfront costs with cloud hosted software, much smaller infrastructure costs as you don’t have to host it, and more flexible scalability to add new end-users to your licence.


Scalability is not the only way cloud software is more flexible. Because you haven’t gambled a large sum of money on a single enterprise software package installed on-premises, you can change your mind and switch to a different hosted platform at a later date.

However, a good enterprise platform like SAP Business One also has built-in flexibility via plugins and bespoke dashboards, so you can change the way it looks for different end-users in different departments, without having to buy multiple different software packages.

Remote access

With more people working from home and remote locations than ever before, installing software on physical laptops is an unnecessary admin burden, as well as being a potential security risk and often not permitted under the terms of service for on-premise software.

Cloud software can be accessed via an internet connection and immediately installs any required end-user software to enable complete functionality.

Again, individuals can be given access to only the functionality they need to do their job. Other parts of your platform can be hidden from unauthorised users, and the whole system can be secured against malicious access by third-parties.

For the future

Finally, managed hosted software comes with all the necessary hardware and software updates included as part of the fee.

This means your systems never become obsolete. Hardware is always leading-edge and software becomes more sophisticated more gradually, for a smoother learning curve.

New employees are always training on the latest version, while older employees learn as they go, and your workforce as a whole is never asked to use a completely new generation of a much-loved platform.

Find out more

To learn more about the advantages of cloud hosted software for your organisation, and how SAP Business One can deliver powerful ERP capabilities online, contact APH today.

If you’re still unsure whether cloud computing is the right fit for your business, you may wish to consider a hybrid IT option.

You can email or call us on 0161 442 2603 to speak to one of our technical consultants, and we’re always happy to discuss any bespoke requirements to give your business the best results.

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