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Cloud Application as a Service vs On-Premise Software

The advantages of cloud technologies include the main indicators. These are  technical, administrative, licensing. But the most important for business are primarily financial benefits. Online services offer simple, flexible, and inexpensive access to any volume and range of computing power. And applications hosted outside the corporate network (ensuring physical security and business continuity). The customer no longer needs to create and maintain their own expensive IT structure. They are using the infrastructure in the cloud. It is 2-3 times cheaper than developing applications or maintaining a traditional IT service. And payment flexibility allows you to accurately correlate costs to the number and volume of actually used IT resources. All this – with maximum reliability and safety of work. Cloud technologies allow you to move both data and business applications outside the company. They serve real business tasks. These are mail, video communication, accounting, document flow, etc. And there are cloud application development benefits.

The main advantages of cloud technologies for business:

  • Employees are no longer rigidly tied to their office. They can work with their data and applications from anywhere in the world where there is Internet;
  • Instead of large advance payments for the purchase and installation of equipment and software. With it the company makes regular equal payments. It’s for the access of its employees to the resources they need, in other words. It’s only upon their consumption. Capital expenditures are replaced by operating;
  • Eliminates the need to purchase. It maintains and constantly updates the software required for operation. Moreover, as the number of employees using cloud services decreases. The fees for them also decrease. This is not possible with the standard purchase of software licenses;
  • The need to purchase and install computer equipment for running applications. It helps to store information is eliminated. This allows you to save both office space and funds for the creation and maintenance of server rooms. These are air conditioning, access security, uninterruptible power supply, etc.;
  • Eliminates the need for your own staff of system administrators and technical support. It provides savings on salaries and taxes;
  • The necessary services are available almost instantly. No additional work is needed to deploy and configure the information systems used;
  • The resources consumed can be scaled almost instantly at the request of the customer. It depends on changes in workloads. In a business process, there are often bursts of activity when resources are needed only temporarily. For example, during an advertising campaign. If in such a situation the user needs to calculate more data, he can purchase more resources. And then abandon additional capacities and even reduce the initial;
  • For geographically distributed companies, additional savings are achieved on communications. They provide access to shared documents;
  • Migration to new versions and new platforms invisible for users. Customers always work with the latest versions of applications.

To sum up

Cloud solutions are believed to solve some of the biggest problems in the business world. And, in our opinion, it really makes life easier for enterprises. According to Cisco, in 2021, cloud storage will handle more than 94% of workloads and computing processes. It is inconceivable how technology. It is only a few years old, has changed the world. The cloud-based approach is becoming extremely popular in e-commerce and other industries. It delivers scalability, performance, and significant cost savings. Reducing hardware costs is another major benefit of cloud computing. This is the reason 47% of businesses reported cost savings after moving to the cloud.

The cloud business makes digital operations more efficient. This gives you the tools and ability to easily customize products to suit changing business scenarios. The extensibility of the solution can greatly assist you in your business operations.

This information will make smarter business decisions. It will help to move from web and desktop applications to cloud solutions.

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