& TECHNOLOGY
On premises vs the cloud: Which is better for business?
When reviewing IT systems, businesses often ask themselves which is better – an on-premises system or a cloud-based system? Martin Roberts (pictured), managing director of Derby-based managed IT support provider Neuways, advises on how to choose the right fit.
For a long time, on-premises options have been the more consistent method of powering a business’ IT technology. The main benefit of an on-
premises system is the ability for it to be housed within a safe and secure environment on-site at a company’s office. As a result, employees benefit from constant and stable network access. The cloud has been regarded as
an up-and-coming competitor but has suffered from issues such as poor connectivity. But as technology and internet
speeds improve, the cloud becomes a viable alternative to on-premises. As many employees have moved
from the office to their own home workspace, could it be that the cloud is finally the preferred option for business IT requirements?
ON-PREMISES VS THE CLOUD The cloud could be seen as a service you “subscribe” to – similar to a streaming service such as Netflix, which can be entirely flexible to react to your business changes and market forces. The opposite could be said for
an on-premises system – you buy and physically own an asset, which
‘It all comes down to need – what does the business need this piece of technology to do’
is more of an upfront investment and has a static capacity. Of course, that isn’t the only
investment needed. If there is an on-site server, for example, it is worth remembering the electricity and cooling costs to power and maintain the hardware. The difference between the two
is that the cloud relies on constant connectivity – it is critical and simply doesn’t work without it.
TWO SYSTEMS ARE BETTER THAN ONE If a company’s employees are remote working, then cloud-based set-ups could provide more flexibility. Microsoft 365 provides connectivity that copes well with distanced working. Documents or spreadsheets no longer need to be attached to emails and, by saving in a shared environment, colleagues can work collaboratively with ease. Alternatively, on-premises
systems can give businesses in industries such as manufacturing the stability they need to work daily, without having their processes compromised by a
New offices for Velez Managed Services
Having quadrupled in size during the pandemic, a global IT maintenance firm has moved into a large office in Derbyshire. Velez Managed Services has made a six-figure investment to relocate
from Derby to a new site in Badger Farm, just outside the village of Hilton to the south-west of the city. It follows a rapid growth trajectory since being founded in April 2019, expanding the team from 10 people at the beginning of 2020 to 46 by the end of the year – with 29 of those hired after the first lockdown in March and joining from numerous countries. CEO Sean Price said: “This investment is a great opportunity for Velez to
expand further in the future, which is one of our goals for 2021.” The office, which allows employees to socially distance once they are
allowed back in the workplace and is equipped with safety measures such as hand sanitisers, will feature amenities such as pool tables and a geometric wall designed by employees. Despite the large investment, staff will continue to be given the option to
work remotely should they wish. Meanwhile, Sean has been shortlisted in the professional services leader
category of the East Midlands Leadership Awards in recognition of his dedication to growing Velez. Winners will be announced later this year at the event, hosted by
TheBusinessDesk.com.
Velez Managed Services CEO Sean Price outside the new Derbyshire office
business network March 2021 79
network outage. Both types of systems have their pros and cons – so having both on-premises and the Cloud in place, in a hybrid set- up, might be the best choice. It all comes down to need – what
does the business need this piece of technology to do? By considering the need, the
current process and how it can be improved, a business can decide what the best solution is for themselves. In reality, the platform is the last element businesses should consider.
CONSIDER RIGIDITY AND FLEXIBILITY When considering such a system, a business should consider its future and how that might help impact a decision. For example, if you’re looking at implementing an enterprise resource planning (ERP) system soon, then Microsoft Dynamics 365 Business Central is based solely in the cloud and has many of the functions a business will require. Users can pay for use on a
monthly basis, allowing them to
scale the system up and down depending on circumstances. Meanwhile, an on-premises
system can’t adjust to scale particularly well. If you have plans to grow, then you might well need to upgrade to a system with more capabilities. On the other hand, if you needed
to scale back, because of furloughed staff or a reduced demand for services, on-premises systems can struggle to adapt.
A WORD OF WARNING For any business looking for a new system, regardless of whether it’s in the cloud or on-premises, it can be difficult to know who to trust. There’s always a vested interest
with vendors and the systems they work with on a day-to-day basis. Hardware vendors want to sell
you hardware, while cloud vendors will want you to invest in the cloud. Managed IT providers are positioned to help identify a company’s needs and what the best technology is depending on business objectives and strategies.
DIGITAL
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