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2 Minute Read: On-Premise vs. Cloud Solution, Differences and Benefits

In our second episode of the 2 Minute PodcastJason Chidester explained the differences between hosting your own on-premise IT solution vs. leveraging a cloud solution and three benefits for moving to a cloud solution.

Here’s what Jason had to say:

Pressed for time? Listen to the audio version of the 2 Minute Podcast here

In general, cloud solutions like GroupBy’s provide 3 major benefits over an on-premise software solution: time-to-market, scalability and risk mitigation, and the benefits to better utilizing your human capital. Now let’s go into more detail about those.

First, we’ll talk about time-to-market.

With on-premise software, additional infrastructure such as servers, load balancers, and additional network equipment is often required by an organization to get an on-premise software solution up and running and out the door. Procuring, configuring and deploying this infrastructure adds cost and, more importantly, adds significant time to get your solution to the market. Needing to account for infrastructure to support additional environments like development and testing – which are often part of getting any solution up and running – only makes the problem worse.

With a cloud solution like GroupBy, you are immediately provided with an endpoint which can support multiple environments. There’s no additional time or cost needed for server setup, installation, or configuration.

Now let’s talk about scalability and risk mitigation.

It’s often difficult for customers to anticipate spikes in their user traffic. When this occurs, with on-premise software, the solution can easily be overwhelmed and performance degrades significantly and rapidly – with the result being a poor customer experience for your users. To scale an on-premise solution to meet the spike in traffic often means purchasing additional infrastructure which in many cases will remain idle during non-peak activity times. What this means is that you have additional costs for either non-utilized or under-utilized capacity. With a cloud solution like GroupBy, it scales automatically to meet unanticipated customer demand, and it does it in a fluid, non-disruptive manner – always maintaining a consistent and positive customer experience – without additional costs.

Lastly, let’s talk about human capital benefits.

How are you getting the most out of your talented workforce?

When an organization goes with an on-premise solution, it must dedicate a significant amount of human resources to constantly maintain and support both the software and the underlying infrastructure needed to run that software. Monitoring network traffic, applying patches and troubleshooting issues are not activities that add value to the business. This is not the case with a cloud solution like GroupBy. By leveraging a cloud solution, an organization can better use its talented workforce to focus on activities that advance a company’s key strategies.

Those are 3 key benefits when looking at a cloud solution versus an on-premise solution.

To learn more about GroupBy’s cloud solution, connect with a personalization expert.