In the digital age, terms such as on-premise or software as a service (SaaS) are ubiquitous. But what is behind these technologies and how do they differ from each other? Here you can learn more about how on-premise systems work and how they relate to clouds.
What is on-premise?
On-premise means “on site” and stands for a licensing model that is used for software solutions. The focus here is on server-based computer programs. Users or companies can install them within their own server environment. In other words, users purchase or rent software and integrate it into an existing IT infrastructure owned by the company.
On-premise, or on-prem for short, is therefore simply another term or a synonym for in-house solution or software license. However, since cloud computing has been gaining popularity and increasingly displacing the on-premise models used, off-premise has also become established as the opposite term.
Functionality of on-premise solutions
For a long time, software was purchased from external providers and then installed on local hardware, i.e. on the computer or hard disk. Users are consequently also consistently responsible for the operation of the software and hardware in these software usage models. Compared to cloud solutions, on-premise gives companies complete control over the respective service. However, as a disadvantage, the full responsibility for problems and risks remains with the IT departments in operation.
Licensors of an on-premise solution usually have limited or no access to the company’s own IT environment. Access to the software is usually via desktop applications or web-based user interfaces. Increased security precautions are required for the second variant.
Generally, on-premise licenses are time-limited. Popular examples of on-premise solutions are Microsoft Office or Adobe products. In many cases, however, it can be seen that more and more software providers are increasingly switching to on-demand models and software as a service.
Application areas for on-premise software
Although there is a shift from on-premise to SaaS, on-premise can generally still be used by companies. However, the decisive basis is corresponding IT resources, which must be available. On-premise solutions are particularly popular with companies that process sensitive data. These still include banks, insurance companies, churches and public authorities. Users who opt for on-premise software do so very consciously on the premise of involving as few third parties as possible in the process of internal data processing.
Overall, however, it must be taken into account that the importance of on-premise is steadily declining and that this effect will probably intensify in the future. Cloud computing is the technology of the future and Software as a Service is the appropriate delivery model for programs. Providers such as TeamDrive provide all the resources for hardware and software. In addition, the licensors take on the task of operating and maintaining the software. For this reason, fees for SaaS solutions are usually not incurred once as with a software purchase, but are charged regularly per month or annually.
Advantages of on-premise
High level of control and independence: As licensees, companies have full control over their own data and also the option to distribute individual access rights. Companies bear responsibility for all internal IT resources and the software themselves. This makes them independent of external service providers. In most cases, Internet access is not required to use the software and access data.
Better data protection: With on-prem solutions, files are stored in a separate data center. This means that third parties generally have no access to this information. In addition, on-premise makes it easier to comply with all legal data protection regulations because the location of the cloud server does not play any particular role.
One-off license costs: With on-premise services, users sometimes only pay a license fee at the beginning. Only when required do further costs for updates or service support arise, so that companies have the choice of whether they want to incur these additional costs. It is often possible to link the software internally with other programs in a network.
Disadvantages of on-premise
Higher effort: Fixing emerging problems is the task of the users, who must also independently take care of updating the software on a regular basis. This also includes data backups. Without expert employees with know-how or an IT department in the company, this only works to a limited extent. In addition, an on-premise model also ties up in-house resources, which can lead to slower processes.
Hardware: In order to use software effectively, users often still need certain hardware. This includes, for example, server systems, software such as databases or operating systems such as Linux. This hardware must be compatible with the programs in order to function. This often leads to technical problems if the specialist know-how is lacking.
Operating and maintenance costs: In addition to costs for IT specialists, there are further expenses for a technical infrastructure. These increase further if errors occur and these have to be rectified by external service providers. It should also be taken into account that licenses are usually restricted to a limited number of people or devices. More licenses then also cost more money.
Cloud computing vs. on-premise: What is the difference?
On-premise and cloud structures are two fundamentally different concepts for using software and processing or storing data. The opposite of on-premise solutions are SaaS models, where the provider’s services are used via the Internet. The advantage of Software as a Service is that providers also operate and maintain the software themselves. The data of the company using SaaS is then usually located in the service provider’s data centers.
The services of SaaS are covered by the rental price. In the meantime, companies almost only use models that are based on a cloud. The applications and the functions of a cloud are billed via contracts, which depend on demand-based usage and cover a period of time. All in all, cloud services are a consistent step toward completely digitizing companies and their processes. In the process, mainly usage-dependent costs are incurred.
TeamDrive offers its customers a free choice: on-premise variant or cloud
The TeamDrive collaboration platform is completely modular. This gives every company the choice of operating part of the TeamDrive infrastructure itself, i.e. on an on-premise basis. Alternatively, the TeamDrive solution can also be used completely as on-premise or partially replaced with existing services, such as own service services for authentication.
TeamDrive also offers a comprehensive cloud service for storing and exchanging data securely and efficiently. Both exchange and storage are protected from unauthorized access by full end-to-end encryption. In addition, TeamDrive’s services meet the requirements of the DSGVO and thus data protection and data security.
Cloud computing with TeamDrive is therefore on par with all the benefits that an on-premise version also brings. Added to this are the advantages of a SaaS solution, because access to TeamDrive’s cloud services is possible at any time while on the move and via various end devices. This provides flexibility and security when processing encrypted data. Scalable modules that expand existing cloud systems as needed round out TeamDrive’s services. Services can be changed and adapted without any effort. In addition, with specialist support, expertise is available on call, and all cloud services run via data centers in Germany.
