As businesses continue to evolve their technology, we have been receiving more and more inquiries about cloud-based software solutions, specifically on the ID Badging and Visitor Management fronts. What we’re discovering is that many companies need a brief explanation of what the cloud is, why it’s beneficial, and whether it applies to their day-to-day operations.
Many companies are operating using on-premise software, which means the software is installed on a company’s own servers and behind its firewall. For a long time, it was the only offering for organizations and may continue to adequately serve the company’s business needs. As they say, “if it isn’t broke, don’t fix it.”
However, there’s agreement among IT decision-makers that in addition to operating locally installed software and legacy systems, there’s an opportunity to leverage new cloud and SaaS applications to achieve their business goals.
According to SoftwareAdvice.com, 60% of software seekers are looking for Web-based products only (cloud)—less than 2% specifically ask for on-premise software.
Before we dive into the considerations of switching to cloud-based, let’s look at the basic high-level definition.
What is The Cloud?
In its simplest terms, “The Cloud” refers to software and services that run on the Internet instead of locally on your computer’s hard drive. Instead of storing and accessing data on-premise only, it allows for access by simply using a Web browser.
What does “On-Premise” mean?
Unlike the cloud, on-premise software is licensed and resides on an organization’s hard drive or server and is usually kept within the four walls of an organization—or in a remote location where servers are housed. On-premise is sometimes referred to as “local” software.
Some vendors also offer “hybrid” options, in which cloud software is hosted on an organization’s private servers.
On Premise vs. Cloud Considerations
There are three things to consider when choosing between on-premise software and cloud-based software: Security, Cost, and Data Storage.
Security
Perhaps the leading reason companies decide to choose or maintain on-premise software is security. With on-prem, the software is licensed, allowing enterprises to maintain a level of control that cloud often cannot. Knowing your data and infrastructure is located in-house certainly brings peace of mind.
However, if your device is stolen or lost, your information on the local drive can be compromised. Additionally, viruses and malware can destroy the data on your hard drive or be spread throughout network files.
Due to publicized cloud breaches, security concerns are typically the number one barrier to the cloud and a real concern for IT departments. However, the time saved with configuration and the low cost of cloud software typically outweigh the security concerns.
Cost
Another consideration when selecting cloud versus an on-premise solution is how they are priced. While there are certainly exceptions, for the most part, cloud software is priced under a monthly or annual subscription. Cloud software can also include additional recurring fees for support, training, and updates.
As we mentioned previously, on-premise software is licensed, which means it is generally priced under a one-time perpetual license fee. The fee is usually based on the size of the organization or the number of concurrent users. On-premise software may also include additional fees for support, training, and updates.
Because of these differences, on-premise systems are usually considered a capital expenditure, meaning one large investment upfront. A cloud solution is typically considered an operating expenditure, meaning an additional overhead cost the organization will continue to pay. Over time, these system costs tend to converge creating an even total cost of ownership. See the chart below provided by Software Advice.
Data Storage
One of the most attractive benefits of having a local software solution is that enterprises retain all their data and are fully in control of what happens to it. Also, no Internet connection is needed to access your stored data and local storage is the quickest way to store and access your data files.
The advantages of having cloud-based data storage are readily apparent—you can access your data from any device, anywhere, and sharing your files is easier in a cloud service, making it easier to grant access to colleagues if you’re collaborating on a project or task.
Other benefits of the cloud include reducing hardware costs (you don’t have to buy added drives, file servers, etc.) and your data is less subject to hardware crashes or computer damages. The cloud is responsible for their environment.
Ultimately, our goal is to ensure that whatever solution your organization chooses, it is the right fit for your business and its ongoing needs. IDentiphoto’s ID Specialists are ready to help you find the software program that best fits your needs; one that can grow with your company. If you’re interested in discussing the latest Cloud-Based ID and Badging Solutions, please reach out to us at sales@identiphoto.com or give us a call at 800-860-9111.
