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On-premises vs cloud: Which is better for your business?

Compare on-premises versus cloud and find out which solution is a better fit for your business. Discover the benefits of a cloud-based solution like ZEP, including flexible costs and easy scalability.

Tanja Hartmann
Content Marketing Managerin
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Deciding between on-premises solutions and cloud services can be a real challenge for companies. Both approaches offer different benefits and challenges, which can vary depending on your organization's specific needs and goals.

In this article, we'll take a detailed look at the key differences between on-premises and cloud to help you find the best solution for your business needs. Learn which factors you should consider when making your decision and how you can make the right choice for the future of your IT infrastructure.

What does “on-premises” mean?

On-premises refers to an IT infrastructure in which companies purchase their own servers and house them in their own buildings. The maintenance and security measures of these servers are entirely the responsibility of the company, which also independently ensures the availability and management of storage capacities. On-premises can also be used to set up private clouds, which can also use leased hardware.

What does “cloud computing” mean?

Cloud computing refers to storing and retrieving data and software applications over the Internet, rather than managing them locally on your own hard drive. Companies rent servers and IT resources from external cloud providers, who take care of the availability, scaling and maintenance of the servers. Data in the Cloud is securely protected by modern encryption and is accessible via the Internet at any time.

Services in the cloud

In the cloud, there are three main service models that build on each other: Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and Software as a Service (SaaS). Each model offers different levels of IT resources and functionalities, which can be combined as needed:

IaaSProvides basic IT infrastructure, such as storage space and servers.PaaSComplements IaaS with Application Stacks such as Operating Systems and Runtime Environments.SaaSProvides complete software applications that are accessible via the browser.

These types of services enable companies to flexibly scale their IT resources and find tailor-made solutions to meet their requirements.

On-premises or cloud: What are the pros and cons?

Deciding between on-premises solutions and cloud services can be decisive for your organization's efficiency and flexibility. Both approaches offer different advantages and disadvantages, which should be weighted based on your specific requirements and goals.

Below, we have summarized the most important advantages and disadvantages of both approaches:


- No investment in hardware required.- High purchase costs for hardware.

- Possible additional costs for maintenance and expansions.

- Easy to adjust storage capacity and user accounts.- Limited scalability.

- High costs for expanding and adapting the infrastructure.

- Access from anywhere and on various devices.- Depends on internal infrastructure.

- Access only when the Internet and system are working.

- No need for internal IT staff to maintain systems.- All maintenance and update tasks are the responsibility of the company.

- Requires in-house expertise.

- Less individually adaptable.- High adaptability to specific business needs.

- Direct control over IT infrastructure.

- Risk due to storage on external servers.- Full control over your own data.

- No data access from third parties.

- Difficulties when switching or refusing service by the provider.- Independence from external providers.

- Complete control over infrastructure and data.

- Unclear whether cheaper in the long term than on-premises.- One-time acquisition costs, but higher long-term operating costs.

- Cost efficiency only when used optimally.

Benefits of cloud-based time recording - ZEP as a SaaS solution

Companies using ZEP for their Time recording , can benefit from the numerous advantages of an established SaaS solution. The cloud-based version of ZEP offers a modern, flexible and cost-effective alternative to traditional on-premises deployments.

Benefits of ZEP as a SaaS solution

With these advantages, ZEP, as a SaaS solution, offers an efficient and future-proof method for time recording at customer and project level, which can be seamlessly integrated into your existing IT infrastructure.

Cost explosion is not possible with ZEP

With the SaaS cloud version of ZEP, an explosion in costs is almost impossible. You are billed per user and month, so you only pay for the accounts you actually use. If you need fewer users, you can easily cancel unused accounts at the end of the month.

Even the additional modules such as Invoicing or Travel expense report As well as features for Project Controlling Are billed transparently, which allows you precise cost control. This makes the cloud solution financially predictable, flexible and adaptable for you.

Conclusion

Deciding between on-premises and cloud solutions can be complex, but as an established SaaS solution, ZEP offers you a modern and flexible alternative. With the cloud-based version of ZEP, you benefit from transparent billing using the “pay-as-you-go” model, which allows you to pay only for functions that you actually use. This avoids high initial investments in hardware and reduces internal administrative costs.

ZEP as a SaaS solution offers you the advantages of simple scalability, regular updates and maintenance-free use. You integrate the solution seamlessly into your existing IT infrastructure and enjoy the security that you are always working with the latest software version. These features make ZEP a cost-effective and future-proof choice for your time recording.

Test ZEP now for 30 days free of charge and without obligation!

FAQs

Which is more secure: on-premises or cloud?

The security aspects of on-premises and cloud solutions depend heavily on the measures implemented. On-premises solutions provide full control over the security infrastructure, but require extensive internal resources to maintain and protect. Cloud providers also implement advanced security measures and often benefit from specialized expertise, but can pose additional risks in terms of data control and vendor dependency.

When is it recommended to use a cloud?

The use of a cloud is particularly recommended when flexibility and scalability are required, for example for growing companies or when there are seasonal fluctuations in resource requirements. Even if you depend on a cost-effective solution without high initial investments and don't want to spend internal IT resources on maintenance and updates, the cloud is a suitable choice.

Why should a company use on-premises?

A company should use on-premises solutions when it needs full control over its IT infrastructure and data, particularly with regard to security and data protection requirements. On-premises solutions also offer greater flexibility in adapting software to specific needs and can be useful when existing hardware and internal IT resources are to be used optimally.

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