On-premises and cloud solutions: understanding key differences and licensing requirements

What is On-premises? 

On-premises software refers to applications that are installed and run locally on a company’s own servers or computers. This means that the physical equipment, infrastructure, maintenance, and support for the software are all managed and controlled by the organization’s own IT team.  

What is a cloud solution? 

A cloud solution refers to a platform, or infrastructure that is delivered as a service over the internet. This allows users to access and use the solution remotely, without having to install it on their own devices or premises.  

Depending on which of the solutions you settle on, there are advantages and disadvantages associated with your choice. It is, however, important you focus on how your needs as an organization will be solved and if your financial state can accommodate expenses that come with your chosen platform.  

What are key differences to know 

1. Accessibility and scalability 

The difference between on-premises and cloud solutions is accessibility and scalability. On-premises solutions are limited by physical servers and their capacity, which means that businesses need to upgrade their hardware or add new servers if they want to scale up their operations.  

Cloud solutions offer more flexibility in terms of scalability as businesses can easily adjust demands to solutions more immediately and faster as their needs will require. Additionally, with a cloud solution, employees can access necessary resources from anywhere with an internet connection, making it a more convenient choice for remote work.  

2. Cost  

Cost is another critical factor to consider when comparing on-premises and cloud solutions. On-premises solutions typically require significant upfront investment in hardware, software licenses, and IT personnel costs. In contrast, cloud solutions usually have a subscription-based pricing model that allows businesses to pay for what they use without any major upfront costs.  

Additionally, with an on-premises solution, companies are responsible for maintaining and upgrading their infrastructure as needed. However, with a cloud solution, the provider takes care of all maintenance and upgrades, reducing overall costs for the business.  

3. Security  

Security is always a significant concern for businesses, especially when dealing with sensitive data. In an on-premises solution, an organization has full control over its data and can implement security measures as they see fit. However, this also means that they are responsible for any security breaches or issues.  

In contrast, cloud solutions often have more robust security measures in place as providers specialize in managing and securing their infrastructure. They may also offer additional security options such as encryption and regular backups to ensure the safety of business data.  

4. Licensing 

One of the main differences between licenses for cloud and on-premises solutions is the pricing structure. On-premises solutions typically require a copy of the software license on a one-time upfront payment for a perpetual license, while cloud solutions often operate on a subscription-based model on a pay as you go option.  

Hybrid cloud solution: working between cloud and on-premises  

Leveraging a hybrid cloud solution  

Your organization can also consider a hybrid cloud solution which brings together flexibility to leverage both on-premises and cloud environments. But while your organization moves to leverage hybrid cloud solutions, there are factors to consider making sure there is effective utilization of the hybrid cloud infrastructure.  

1. Determine the right mix of resources 

Before deploying your hybrid cloud solution, your organization must assess the current IT environment and identify which applications or workloads would benefit from being on-premises and which ones could be moved to the cloud. This helps in determining the right balance between cost, performance, and security.  

2. Which automation tools to best adopt 

Settling on a hybrid cloud environment, your organization may have multiple management interfaces to deal with in order to optimize operations. To avoid complexities, it is important to choose the right automation tools to use that can provide a single pane of glass view of your entire IT infrastructure. This helps in simplifying management and reducing human error.  

3. Ensure secure connectivity 

One of the key components of a hybrid cloud solution is ensuring secure connectivity between on-premises and cloud environments. Businesses must invest in robust network infrastructure and security measures to ensure seamless communication between both environments without compromising data security.  

4. Understand cost implications 

While a hybrid cloud solution provides the benefit of cost optimization through the scalability of the cloud, your organization must note the potential costs involved such as network bandwidth, storage, and management fees. A hybrid cloud strategy will help analyze costs and carefully plan other important decisions to be taken.  

Licensing requirements in the cloud and on-premises environment  

Both environments offer different licensing requirements that need thorough review and understanding to make sure your organization is strictly adhering to terms. This includes any potential restrictions on usage, such as geographical restrictions or limits on the number of users for which if breeched will attract penalties.  

These requirements are voluminous in nature and comprehension can be difficult. However, our team of experts have worked on Microsoft licensing requirements for over a decade and will be able to assist your organization.   

While assisting you, we will consider the type of software you want to use, which users require access to, and also the cost implications in order to guide you expertly.  

There is a plethora of ways to consider cost savings and efficiencies, and we can point you to all these. We will have a case-by-case study of your current IT infrastructure and license roadmap to help you make decisions that are best fit for your unique situation-either moving to the cloud, staying on-premises or adopting a hybrid situation.  

Second-hand on-premises and cloud licenses available to your organization 

Although it is very important to have licenses for products and services as offered in the cloud or on-premises, cost is one of the major headaches for most organizations. Nonetheless, yes, we advocate the need to get properly licensed to use software and avoid non-compliance issues.   

However, we are also able to help you acquire pre-owned licenses as cost and savings is one of the major challenges in recent economic instability. Purchasing pre-owned licenses still offers you all the goodies that come with a new license and gives you solutions to your needs.  

Instead of paying heavy fines for non-complaint, take advantage of what our experts can offer you and exploit the many advantages that come with using pre-owned or used licenses.  

contact form

Name