Indianapolis IT Infrastructure: On-Premises vs. Cloud Solutions

The cloud can transform a business but there are some advantages of an on-premises environment. This article will review on-premises vs. cloud solutions for companies deciding on the what’s right for their future.

October 3, 2023

The Decision

Many Indianapolis businesses have embraced the cloud to store data. However, some companies continue to choose on-premise storage because of concerns about data security, potential breaches, and access. These businesses might have on-site servers they manage and use to host their applications and websites. However, cloud solutions offer multiple benefits vs. on-premises storage, including the ability to access data from anywhere, anytime, and from any device with an internet connection. Cloud solutions enable teams to collaborate from various locations online while working on the same project.

Companies that store data in the cloud don’t have to run their applications on local servers. Consequently, they don’t have to manage servers on-site. If your Indiana company is considering moving to the cloud vs. on-premise solutions, it’s important to understand the differences between cloud solutions and continuing with on-premises options.

Understanding On-Premise IT

An organization that uses on-site solutions has all its software and IT infrastructure within its physical premises and hosts them on-site. This means that applications are installed on physical machines the organization owns inside the company’s physical office or data center. IT staff control the hardware, security, and data configuration and can physically access the company’s data. While your internal teams have this type of access, third parties cannot remotely access it.

Understanding the Cloud

Cloud solutions involve applications, services, and servers that operate over the internet instead of being physically stored on-site on the organization’s computing infrastructure. Cloud servers are located in large data centers across the world and can be accessed using your browser. Cloud service providers might also allow access through mobile apps.

Cloud computing uses virtualization to create virtual servers. This happens when multiple servers operate simultaneously and create a virtual server that is then converted into multiple servers. It also helps to create numerous data centers and allows providers to serve multiple companies simultaneously with affordable pricing. Numerous cloud services are available to the public, including Amazon Web Service (AWS), Google Drive, OneDrive, Apple iCloud, and more.

In-House vs. Cloud-Based

If your IT infrastructure is entirely on-site, all of your applications will be hosted within your organization. Your company will have to make large capital expenditures on software licenses, servers, sufficient office space, and labor costs for IT staff who can manage everything. Your organization will also be responsible for maintaining your applications, paying for upgrades, and ensuring the security of your networks and data.

If you turn to cloud-based solutions, you won’t need to worry about the capital expenses involved in purchasing servers, applications, additional office space, or labor costs for additional IT employees. Instead, your data will be stored off-site within the provider’s cloud infrastructure. Cloud providers handle the maintenance of the applications and hardware and provide organizations with the resources they need for storage.

A cloud service provider‘s services differ for companies vs. individuals. For example, your organization might benefit from infrastructure as a service (IaaS), software as a service (SaaS), or a cloud platform as a service (PaaS) in addition to data storage. Your organization also won’t need to worry about upkeep or have to make a large, upfront investment. In addition, some providers offer private clouds, and others offer public clouds.

Public Cloud vs. On-Premise – Key Differences


With the public cloud, a key difference is where the servers, applications, and operating systems are located. Cloud applications are hosted off-site on the cloud provider‘s servers and are accessible through a browser. Everything is hosted within the cloud by the cloud provider. By contrast, with on-premise solutions, on-premise software applications are installed on the organization’s servers and computers. The organization’s IT staff hosts everything, deploys resources internally, and maintains the software, servers, and components.


In terms of cost, the cloud can offer significant cost savings compared to in-house solutions. If you choose to keep everything within your organization, you’ll need to pay for your IT infrastructure, including your servers, computers, components, and applications. You’ll need to have enough office space to accommodate all of your computing hardware and be responsible for paying the staff who maintain it. With the cloud, your organization will pay for a monthly subscription instead of having to purchase and maintain IT hardware.


Control is another important difference between the cloud environment and on-site solutions. A company that keeps everything in-house will have full control over its data, services, applications, and infrastructure. With the cloud, your data is stored on cloud servers owned and maintained by the cloud service provider. If you choose to keep everything in-house, an unexpected event could prevent you from accessing your data and cause serious disruptions to your business’s operations and downtime. With the cloud, disaster recovery is easier since your data will still be accessible from its location off-site.


The cloud is highly scalable and provides services on-demand, which allows companies to store as much data as they need. As your Indiana company grows, you can add additional cloud resources to meet your increasing requirements. By contrast, on-premise solutions are limited in terms of storage capacity and computing power.


Security is a common concern for organizations considering whether to move to a public cloud. When your organization has an on-premises approach, your data will stay within your servers. This can provide a high degree of security. With a public cloud, security threats can be a concern because of hacking and breaches. However, a reliable provider that implements strong security measures can stop security threats and prevent most issues.

Understanding the Private Cloud

A private cloud is a cloud solution in which a provider offers cloud computing services to a single organization instead of providing services to numerous companies that share access to a public multi-cloud environment. This provides similar benefits to using a public cloud in terms of scalability and flexibility, but it allows the organization to maintain more control, privacy, and security. A cloud services provider hosts and manages the private cloud.

There is also an option called an internal private cloud. This is a cloud computing environment that is located in the company’s physical location. The company owns and maintains the cloud computing infrastructure and is responsible for purchasing everything.

Finally, a hybrid cloud combines on-premise and private or public cloud storage. Data servers located inside the company’s premises are shared with the company’s remote locations through the cloud. With a hybrid cloud, the organization will typically pay for hosted cloud use. A hybrid cloud allows a company to store sensitive data on-site or within a private cloud to maintain control over it. Less sensitive data can be stored in the public cloud, and the company can benefit from the public cloud provider‘s flexibility, scalability, and additional resources.

Cloud Migration

If you want to move to the cloud, you’ll need to undergo a process called on-premise to cloud migration. This process involves moving your digital assets from your organization’s premises to the cloud. Once the migration is complete, you’ll be able to access everything from anywhere instead of only being able to access data while you are in your office.

Benefits of Cloud vs. On-Premise

The benefits of the cloud vs. on-premise include:

  • Cost savings
  • Flexibility and scalability
  • Easily accessible from anywhere
  • Faster deployment
  • No large capital expenditures or upfront costs
  • Reduced workloads for internal IT staff
  • Choose services to meet business needs and avoid redundancy

Your business needs will dictate whether you should choose the cloud or on-premise solutions. If your company is budget-conscious, the cloud can be a great solution since you won’t have to purchase servers and hardware or pay for additional IT staff to maintain everything. The cloud is also highly scalable and can grow with your company. On-premise can offer great security, but reliable providers should also offer strong security. If you would like to learn more about on-premise vs. cloud solutions, contact us for more information.