Why On-Premise Software Still Holds Its Ground in the Cloud-First Age

In an age where 'The Cloud' often dominates tech discussions and takes the limelight in strategy meetings, you could be forgiven for thinking that on-premise software is yesterday's news.

Make no mistake, though, the on-premises solution vs cloud tug-of-war is far from over.

It's like comparing a tailored suit to off-the-rack - the latter might be more popular, but there's such a compelling case for the bespoke route - one that may benefit your business tenfold.

To help you decide which is best for you, we flip the narrative on the industry meta, shining a spotlight onto on-premise solutions, the unsung hero that often lingers in the shadow of the cloud. We'll uncover what truly makes on-premise software stand out, its unique advantages, and why it still holds an important place in the software ecosystem.

Whether you're a tech leader well-versed in these solutions or a business executive seeking the best fit for your company, you'll surely gain a new perspective here.

Let's get into it.

What is On-Premise Software?

On-premise software is a type of computing software installed and run on the premises of the person or organization using the software.

These days, cloud computing and cloud-based software are all the rage since they offer any company the benefit of having state-of-the-art software without hosting, maintaining, and implementing it.

Just sign up, the provider connects you, and away you go.

Examples of this could be web-based email services like Gmail, online storage facilities like Dropbox, or software-as-a-service (SaaS) platforms such as Salesforce or Deskpro Cloud. These solutions are hosted on the provider's servers and accessible anytime from anywhere with an internet connection.

However, on-premise applications reverse this concept -- everything is housed within your own private network. It's installed on your own servers and maintained by your IT staff, and your data remains entirely under your control.

Examples of on-premise software include Microsoft Exchange Server for email services, Oracle Database for data management, and, importantly, help desk software solutions like Deskpro.

These self-service solutions provide organizations with full autonomy over customization, integration, reporting tools, and data security, as the software serves a single enterprise, and all associated data remain within the company's in-house servers.

Which is fantastic when it comes to modern privacy and data management laws.

Sure, historically, on-premise software was the go-to choice for businesses.

In many ways, this is where all software started, and for many personal users, freelancers, and entrepreneurs, it's still the way forward.

Applications you install and run on your own computer or server.

Before we had high-speed, reliable internet connections that made cloud computing reliable and feasible, on-premise was the only real option for running software applications.

Yet, despite the aggressive adoption rates of cloud software, on-premise still holds tremendous relevance and, for many businesses, continues to offer certain advantages that contemporary cloud solutions are yet to provide fully.

This is what we're deep diving into today, so if you feel restricted and as though cloud solutions are great but not what you're looking for, or you're looking for complete control, this guide may just be what you're looking for.

Your complete guide as to why on-premise solutions are right for you.

What are the Benefits of On-Premise Software?

Although the cloud has been making waves in the digital world, on-premise software hasn't been conclusively dethroned. Here's why:

Control: On-premise software gifts organizations total control of their software, data, and infrastructure the new software requires. Everything is managed in-house. This opens the doors to customizing the software aligning it with the company's unique requirements, which is often not possible with cloud solutions.
Security: Data breaches and privacy concerns keep many business executives awake at night. With on-premise solutions, companies hold the reins of their data security. This is paramount in healthcare, legal, and finance sectors with stringent data regulations.
Performance: Need for speed? On-premise software typically outperforms cloud-based offerings, especially in operations that lean heavily on computational resources or require quick data access, like manufacturing and engineering firms.
Integration: On-premise solutions often blend more seamlessly with existing IT operating systems, a huge advantage for elaborate IT infrastructures or businesses that have heavily customized their existing systems.

We'll break these benefits down into a little more detail throughout this guide, but that should give you a base idea of what to expect.

Now, let's get into it.

Harnessing Complete Control, Enhanced Security, and Strict Compliance with On-Premise Software

By far the greatest benefit of running software on premises is the degree of control you get.

Let's take a public cloud platform like Google.

You have all your apps, Google Docs, Sheets, Gmail, and so on. All are integrated and working together. While that's clearly a leading system, the truth is you get absolutely no control over any of it.

It's all housed in a remote facility run by developers you're never going to meet or have access to.

Whether you want new features, specific "plugins" or "extensions", more users connected, different integration capabilities, better customization options - whatever it is you want, you can't really have it. No officially. You can patch ideas together to make it work, but you're really just making do.

Making do doesn't work when you're looking to grow and thrive as a successful business. It's certainly not a reliable scaling option.

This control extends to your data, the software's configuration, and how it's managed and updated. You can fine-tune the system to your specific business needs and integrate it seamlessly into your existing IT infrastructure.

Here are some examples:

Deciding when and how to implement software updates and patches without an external schedule dictating the pace. For instance, with an on-premise CRM like Microsoft Dynamics, you can choose the optimal time for updates, minimizing disruption.
Fine-tuning your database management system to suit your unique operational needs. With Oracle Database installed on-premise, you can configure the system to your specific data storage, manipulation, and retrieval requirements.
Crafting a bespoke security protocol around your data according to your organization's policy. Using on-premise software like Deskpro, customer support data handling can be tailored to ensure maximum security and privacy.
Implementing tailored disaster recovery and backup plans specific to your business appetite and risk tolerance. With on-premise solutions like Veeam Backup, you're not tied to the generic strategies offered by cloud-based SaaS software or platforms.
Integrating the on-premise software with other applications or services specific to your business needs, creating a unified tech ecosystem on your own infrastructure, such as incorporating an on-premise Exchange Server with an existing Active Directory setup.

This level of control equips businesses with the agility and flexibility required to navigate today's volatile business environment while maximizing efficiency and productivity.

Fortifying Your Data – Enhanced Security

On-premises software is akin to having your own fortress with walls built to your specifications.

Your data remains safely inside your organization, adding a layer of protection.

Data breaches are such a risk of technological disaster these days, especially when customer data is so valuable (especially your customer's financial data, when it's in the wrong hands), and your reputation and success as a business rely on you keeping it safe.

However, one of the key differences to bear in mind here is that if you're outsourcing your software and, therefore, your data, you put your security in the hands of your third-party provider of data center.

And with over six million data records exposed in the first quarter of 2023 alone, that may not be a good thing.

For businesses dealing with sensitive information, such as financial services and healthcare providers, knowing where data is stored and who can access it is critical—making on-premise software a real security superhero.

Meeting Regulatory Standards – Superior Compliance

For some companies, staying on the right side of industry regulations isn't just desirable—it's a non-negotiable. However, data privacy norms and industry-specific compliance often demand unhindered control over data processing and storage.

For example, highly regulated industries dealing with significantly private and sensitive customer information—such as those in telecommunication, healthcare, and banking—must comply with stringent regulations like GDPR, HIPAA, or Sarbanes-Oxley.

Relying on on-premise software gives organizations the reins to shape their own fate in compliance matters. Not only can you prove you're compliant on a legal basis, but you can actually keep your customer's data safe.

Consumers and clients these days are far more savvy than they used to be, and one slip can seriously damage your reputation (46% of companies experience this).

Molding Perfection – Customization Possibilities

Time to flex your creative muscles!

As mentioned before, on-premise software empowers organizations to tailor their software to suit their specific business processes, granting a level of customization that's often restrictive in cloud-based solutions.

The result?

An optimized experience that streamlines workflows increases productivity and enhances overall efficiency.

The fundamental difference being that they are all designed and built from the ground up in a way that works for you.

Smooth Moves – Integration Ease

Oh, and just before we round off this chapter of the guide, yet another ace in the hole for on-premise software is its compatibility with both legacy and up-to-date systems.

Large organizations with established infrastructures can seamlessly weave the software into their network and avoid common pitfalls or disruptions associated with integrating cloud-based services.

If you're looking to bring a bunch of tools together in a way that works for you without relying on external developers who may or may not support (or continue to support) your way of working, take control of your digital systems and have them work for you.

Uninterrupted Reliability and Stellar Performance with On-Premise Software

Imagine a world with zero interruptions and top-notch performance around the clock.

No, it's not a dream; it's the reality of on-premises solutions.

For businesses working with large volumes of data or running high-performance applications, the consistency and performance of on-premise software can be a game-changer.

For example, should your Internet take an unexpected hiatus, a cloud environment could leave you stranded, putting your workflow on hold.

This is not the case with on-premise, on-site software.

Being housed within your company's network (or even private cloud), it serves up the digital power you need, even when your Wi-Fi doesn't feel like cooperating. In other words, performance isn't tied to your Internet's mood swings—giving you unfailing reliability.

Performance Par Excellence – Right When You Need It

On-premise solutions shine in their ability to process data quickly and efficiently—a feature of paramount importance for sectors such as manufacturing, engineering, video game design, or any field that demands real-time data processing and high-performance computing.

The supremacy of on-prem software in these sectors isn't mere chance but a testament to their strong performance credentials.

In essence, for businesses where time is of the essence and reliability cannot be compromised, on-premise software dons the cape of the unsung hero—offering a foundation of steadfast performance and relentless reliability.

The Costing Game of On-Premise Software: Initial Investment and Long-Term Gains

Embarking on the on-premise software journey may seem like plunging into an ocean of costs. And sure, the significant investments upfront can be fairly high. Probably enough to scare you away.

However, much like a typical car insurance policy, when you're using in-house SaaS providers, you're making a large lump-sum investment to begin with and then reaping the big savings over the course of the next few years.

Let's break it down, and you'll see that this doesn't have to be a daunting venture but a strategic long-term investment.

Unveiling the Price Tag – Upfront Costs

Like every superhero with their origin story, on-premise software comes with its groundwork. There are some initial capital expenses for the infrastructure required (depending on your deployment options), and probably some additional investments to ensure you have the setup you want.

Usually some more costs over time as you monitor, adapt, and evolve your system, such as additional servers and so on.

these sorts of costs include;

Software licensing.
Acquisition of server hardware.
Setting up network infrastructure.
Onboarding the IT personnel to manage it all.

Although the sticker price might seem steep, it outlines the birth of a system that grows with your business. It's scalable, you get all the benefits we listed above, plus you may never have to pay for subscription SaaS products again.

The Long Run – Lifetime Advantage

In an on-premise configuration, it's like you are building your data castle. Once the castle is up, the ongoing costs tend to diminish, offering potential savings over the pay-as-you-go model of cloud solutions.

Picture this—no recurring subscription fees and full control over your landscape to optimize operations, save on data storage costs, and maintain high computational capacities.

Like most superpowers that take time to hone, on-premise software appeals to those willing to invest upfront for potential long-term cost advantages. In the next section, we'll bring it all together to highlight why on-premise software might be the superhero your business needs.

On-Premise Software: Tackling the Challenges and Rising Above

While on-premise software offers significant advantages such as customization, integration, reliability, and cost savings in the long run, it's essential to recognize its challenges and potential drawbacks. Fret not, for with every challenge comes opportunities for mitigation.

Challenge 1: Infrastructure and Maintenance

Managing on-premise software requires continuous infrastructure maintenance, patching, and security updates. The onus lies with the organization to ensure optimal functioning.

Mitigation: Establish a dedicated IT team well-versed in the software's nuances, providing ongoing maintenance, updates, and security measures to keep the system robust and secure.

Challenge 2: Scalability and Flexibility

Scaling on-premise solutions may demand the acquisition of additional hardware, server space, or software licenses—potentially leading to limitations in flexibility.

Mitigation: Forecast your organization's growth and plan ahead by designing a scalable IT infrastructure that evolves with the company's needs, striking a balance between resource allocation and flexibility.

Challenge 3: Disaster Recovery and Backups

With in-house data storage, there's an increased risk of data loss due to unforeseen events like hardware failures or natural disasters.

Mitigation: Implement scheduled backups and ensure you have a well-planned disaster recovery strategy, minimizing downtime and safeguarding your organization's precious data.

Challenge 4: Dependency on IT Personnel

The success of on-premise software is contingent upon the competence of the IT team.

Mitigation: Invest in continuous training and development of your IT personnel, ensuring they stay ahead of industry trends and technological advancements.

Understandably, while the challenges of on-premise software may appear daunting, employing strategic mitigation approaches will empower your organization to soar above the hurdles, unlocking the full potential of your superhero on-premise software.

Wrapping It Up

We've covered a lot of ground exploring the on-premise software landscape. From performance and reliability to cost considerations and meeting specialized needs, on-premise offers compelling benefits.

With on-premise systems, businesses gain serious advantages in:

Maintaining consistent performance
Enjoying robust reliability
Navigating cost structures that pay off long-term
Enabling real-time, nimble processing for industries like manufacturing and engineering

Yes, the cloud offers perks like scalability and low upfront costs. But for businesses prioritizing data control, performance stability, and long-term cost savings, on-premise can't be beaten. It's not just an alternative but a strategic choice to align operations with corporate objectives.

Intrigued to learn more?

Check out Deskpro, an on-premise help desk software with customizable features to wow customers. Try it free and experience first-hand the strategic edge on-premise software can bring. The proof is in the pixels - on-premise still rules for the proper use cases.

The cloud may be hot, but don't underestimate the on-premise advantage. Its compelling benefits are here to stay.