Cloud computing is the practice of using a network of remote servers hosted on the Internet to store, manage and process data, rather than using a local server or personal computer.

The biggest difference between Cloud Enterprise Resource Planning (ERP) systems and Premise-based systems is how they are deployed.  Cloud-based software is hosted on the vendor's servers and accessed through a web browser.  Premise-based software is installed locally on a company's own computers and servers.

Cloud servers can be configured to provide levels of performance, security and control similar to those of a dedicated server.  Instead of being hosted on physical hardware that is solely used by you, they reside in a shared “virtualized” environment managed by your cloud hosting provider.


What are the advantages and disadvantages of Cloud Computing vs. On Premise Software & Servers?

Benefits of Cloud Computing

1.      You are no longer responsible for hardware maintenance and large upfront capital expenditures every four (4) to five (5) years, the average replacement timeframe for hardware.

2.      You are more mobile, having remote access to email and web-based applications.

3.      The Cloud allows for scalable solutions, giving you exactly what you need vs. the possibility of over-resourcing equipment you may not use.

4.      Higher levels of Disaster Recovery (DR) opportunities are available.  Different vendors offer different service levels based on recovery time objectives.  If disaster happens to your facility, you need not worry about data saved offsite since it already resides on the Cloud.

5.      Consistency in cost allows for predictable budgeting on an annual basis.

6.      Operating System (OS) updates include security to the latest versions.  With most Cloud providers you no longer need to keep an eye on server operating systems’ end of life because you will be up to date on the latest releases.  

7.      Competitiveness – Server Message Block (SMB) protocol now provides access to enterprise solutions including files, printers, serial ports and other resources on a network.  This allows you to be competitive, lean and nimble in the marketplace.

Disadvantages of Cloud Computing

1.      The Cloud can be difficult to set up, and to change if you are dissatisfied with the service.  

2.      If you are heavily reliant on internet bandwidth, you will experience downtime when the internet is out or intermittent.

3.      Large files, such as AutoCAD, can be disruptive and take extended periods of time to open.  The Cloud may not be a viable or reliable hosted solution.

4.      You are reliant on the maintenance cycle of the Cloud provider and potential slower service responsiveness, depending on the issue you are having.

5.      The Cloud will save time in the short term, but overall expense is higher in the long term.  Cost may rise based upon usage and can outweigh the costs of an internal infrastructure over time.

6.      You will not have as much control over security and data when the data resides with the Cloud provider.  Consider how often updates are applied and what type of physical security the facility provides.


Click here to learn more about Cloud Computing or call 414-228-7474 to talk with a team member about the right solution for you.




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