On-prem vs. cloud: Making the right choice

Having a robust IT infrastructure is the backbone of success for many modern enterprises. However, some are still reliant on tried-and-tested on-premise (on-prem) legacy systems, while most have opted for or are considering cloud deployment.

But not every application is a good candidate for the cloud, and not every on-prem structure needs an upgrade.

To help you make an informed decision on which setup is the best-fit solution for your enterprise, we’ve prepared a comprehensive guide that dives deep into what on-prem and cloud-based solutions are, as well as their key differences, strengths and risks.

What do we mean by on-premise vs cloud?

On-prem and cloud are two distinct methods of deploying and managing IT architecture, with the fundamental difference being where the servers reside.

An overview of on-prem

On-prem computing involves hosting, deploying and maintaining all relevant IT software and hardware within the physical premises of an organization. As everything is stored locally, it enables enterprises to have total ownership over the management, security and maintenance of their IT resources.

It is why many legacy systems and traditional data centers still rely on on-prem servers, as most were built to handle custom hardware or specific business requirements.

An overview of the cloud

Cloud computing differs in one critical aspect — it outsources the IT infrastructure to a third-party provider instead. Cloud software is accessible over the internet and is hosted in remote data servers around the globe.

Cloud deployment is becoming an increasingly popular option for businesses looking for a cost-effective, scalable way to manage their data, as it offloads the burden of IT maintenance and upgrades to the provider. There’s also a range of cloud types available in the market, such as public, private and hybrid models, to cater to various business needs.

Although there is some common ground between how on-prem and cloud architecture operates, there are several key differences:

Below, Hyland CEO Jitesh S. Ghai and Alan Pelz-Sharpe, founder and principal analyst at Deep Analysis, discuss the power in embracing data fragmentation as a central tenet of modern enterprise data strategies. In particular, they tackle the concept of a singular repository or cloud and instead highlight the significance of meeting data where it resides, whether in a legacy system, hybrid cloud environments or multicloud architectures.

What are the pros and cons of on-prem and the cloud?

Whether you’re evaluating a data hosting model for the first time or debating on making the switch to the cloud, it’s best to first understand the advantages and disadvantages of both infrastructure types before making a decision.

The pros of on-prem:

• Complete control: The in-house nature of on-prem setups enables enterprises to fully control their IT environment for personalized system and software configurations that align with their business needs.

• Reduced dependence on third parties: On-prem servers are usually accessible through a company intranet. Even during internet or third-party service outages, the on-prem server remains operational.

The cons of on-prem:

• **The cons of on-prem:**Setting up an on-prem architecture from scratch demands a significant upfront investment for servers, networking equipment and storage. Organizations must also consider the expenses needed for maintenance and upgrades down the road.

• Limited scalability: The physical constraints of on-prem setups limit rapid expansion opportunities for businesses. Limited system performance and storage capacity also render on-prem servers unable to accommodate an increase in user load or data volume.

• **Internal maintenance responsibility:**Due to higher operational responsibilities and resources, on-prem servers require a specialized in-house IT team to run timely system audits, maintenance and upgrades to ensure everything is performing smoothly and as intended.

The pros of the cloud:

• Cost savings: Because cloud services operate on a pay-as-you-go model, businesses only need to pay for the resources they use. This makes moving to the cloud an attractive option for organizations working with limited budgets or looking for operational expense (OPEX) versus capital expense (CAPEX).

• Scalability: One of the biggest advantages of cloud environments is scalability. This offers enterprises a way to build organizational agility. Businesses can scale resources up or down as and when needed, such as to address evolving operational requirements or capitalize on increasing market demands.

• Hands-off maintenance: Cloud providers are responsible for software upgrades and maintenance, ensuring your systems are always updated without any additional overhead cost.

The cons of the cloud:

• Potential security considerations: Moving to a public cloud raises several data security concerns, as cloud servers may be vulnerable to cybersecurity attacks and data breaches. Proper configuration and expertise are key to keeping the environment secure. Ensure any selected provider takes account of these risks and adheres to stringent data security standards, such as being SOC 2 and/or ISO 27001 certified.

• Limited control: Although cloud services offer a great degree of flexibility, the drawback is its infrastructure offers limited customization, which can be an issue for organizations seeking more complex or specific configurations.

• Internet dependency: Cloud services are accessible via a stable internet connection. But unpredictable situations such as poor connectivity or a server outage can disrupt operations and have serious ramifications for businesses.

Although legacy on-prem systems have their strengths, Gartner predicts cloud computing will shift from being a tech disruptor to a business necessity by 2028, with more than 50% of enterprises leveraging the cloud to accelerate their initiatives.

This is especially pertinent for organizations looking to better leverage their content to drive more strategic business value. Shifting to a cloud-based content solutions model can enable organizations to harness their content more effectively to deliver more impactful business outcomes, such as accelerating innovation and improving customer experiences.

Aside from providing content in context, adopting a cloud-based content platform allows organizations to reap the advantages of rapid solution deployment and ongoing platform innovation.

Look for providers with a purpose-built cloud architecture for content solution applications, such as the Hyland Cloud.

The Hyland Cloud is a secure, scalable solution that integrates data, processes and content to enable seamless content and process management and ubiquitous access to critical information anytime, anywhere from any device.

Users can leverage Hyland Cloud’s industry-leading platform capabilities to deliver and deploy tailored business solutions.

5 reasons to move to the Hyland Cloud

Here are five reasons why you should consider a cloud-based intelligent content solution like the Hyland Cloud:

1. Flexibility and scalability

In a time when businesses are looking to enhance their organizational agility and resilience, the scalable and flexible nature of cloud-based content solutions ensures that organizations can respond to market changes rapidly and effectively.

With the Hyland Cloud’s scalable infrastructure, businesses can easily expand or reduce resources to accommodate their content needs without being limited by physical storage restraints.

2. Cost efficiency

Moving to the cloud cuts the costs associated with on-site infrastructure maintenance, reducing the overall operational expenditure needed just to store documents.

The Hyland Cloud uses a flexible, subscription-based model that allows companies to operate within a more predictable budget for more strategic financial or cash flow predictions.

3. Enhanced collaboration and productivity

The seismic shift to remote and hybrid working models has surfaced a need to support more agile ways of working. Adopting a cloud-based intelligent content solution like the Hyland Cloud empowers employees to collaborate in real time while transcending geographical boundaries.

With all content stored in the cloud repository, access to information is streamlined, and cloud-based workflows boost employee productivity with robust content management and automated file routing capabilities.

4. Disaster recovery

Adopting a cloud-based content solution is paramount for effective disaster recovery. Cloud services have robust infrastructure in place to ensure business continuity in the event of any server outages, such as content backup and multisite deployment.

These protections reduce downtime and minimize disruption to operations, allowing businesses to quickly recover and ensure mission-critical data is secured.

5. Global accessibility

For multinational enterprises or organizations with a globally dispersed user base, managing content in the cloud ensures relevant information can be easily retrieved and managed from anywhere in the world, at any time.

> Download the e-book: The emergence of cloud-enabled content services

In this video, you will discover the top five reasons why you should start making cloud migration a priority today instead of kicking that can down the road. See all of the advantages that being ahead of the curve can get you.

Baptist Health, a full-spectrum healthcare provider spanning 23,000 employees across nine hospitals, significantly enhanced operations by making the switch from an on-prem deployment to the Hyland Cloud.

The move was motivated by a pressing need to drive innovation, improve patient experiences and reduce cyberattack risks. Key to the transition was the integration of two enterprise-wide bots, which automated processes throughout the enterprise and slashed operational costs.

This shift to the cloud not only reduced the administrative workload on staff but also enabled them to prioritize more strategic initiatives.

The Hyland Cloud is a secure, scalable solution that integrates data, processes and content to enable seamless content and process management and ubiquitous access to critical information anytime, anywhere from any device.

Watch the story of Baptist Health’s successful cloud migration to learn more about how moving to the cloud helped modernize its business:

Migrating to the cloud is a significant move for any business, and a smooth and efficient transition is contingent on extensive planning and a detailed migration strategy.

If you’re looking to migrate your content or business solutions to the Hyland Cloud, here is a snapshot of the migration process:

1. Complete a content inventory

Before launching your cloud migration, perform a content inventory to review what moves to the cloud, what stays behind and why. Use this opportunity to identify any redundant or obsolete documents before disposing of them according to legal and compliance requirements.

With the Hyland Cloud’s scalable infrastructure, businesses can easily expand or reduce resources to accommodate their content needs without being limited by physical storage restraints.

2. Deliver a copy of your cloud-bound content to your cloud provider

Once you’ve identified which content will be moved to the cloud, send it to your cloud provider so they can begin setting it up in its new home on the cloud.

3. Perform rigorous testing

Begin with a pilot test of smaller, less mission-critical applications or data. Remember to track changes and ensure that all necessary changes are applied before they go live.

4. Schedule the go-live date

Once testing is complete, it’s time to go live. Hyland will schedule a “go live” date that is most convenient for you to minimize operational disruptions and downtime.

5. Prepare to launch

Before the final migration, stop all on-premises solution work to enable a clean cutover from on-prem to the cloud.

6. Final testing

Put the solution through one last round of testing to check that everything is functioning as intended before going live.

7. Time to go live

Your solution is live, and your organization is now ready to reap the benefits of your Hyland Cloud-hosted solution!

Deciding between on-prem or cloud-enabled solutions requires a careful evaluation of your business goals and objectives. While on-prem setups offer control and customization, the cloud is synonymous with agility, cost-effectiveness, and innovation — the latter of which is critical for businesses to remain competitive in today’s dynamic digital landscape.

In the context of content solutions, forward-thinking industry leaders are acknowledging the merits of cloud-first content management strategies and the role they play in enabling more efficient ways to work and innovate.

Ultimately, the right choice is one that aligns best with your specific business needs and allows your enterprise to flourish today and into the future.