The difference between in-house/on-premise resources and cloud-based computing is pretty much in ease, options and cost to the users and depending on your needs it could be some trial and error to see which is best suited for you. With an in-house application you can pay for the services on the spot and then later pay for upgrades as you go along. With the cloud solutions there is a monthly charge over the life of using this and may cost more in the long run. It could be compared to buying furniture out right or going the rent-to-own route. You can buy a sofa for a one time price of $500 or rent the same sofa for $100 a month for 12 months.
Are there benefits to using on-premise solutions? Robert Hoehn of www.questionpro.com says that if you want to stay competitive, using on-premise will put you behind your competitors. He states, "if you decide to maintain the software in-house, you will put yourself behind your competitors, as your company will incur an additional cost/risk associated with maintenance of software". Cloud computing, according to Margaret Rouse "a cloud service has three distinct characteristics that differentiate it from traditional hosting:
Time and money seem to be the biggest factor in using "on-premise" or "in the cloud" computing services. Most businesses may still be used to the old way of doing things and are reluctant to try a newer version of technology and they wait to see how it works for the other guys, but by then they other guys are miles ahead everyone else.
Factors companies must consider for using cloud solutions:
•Analyze and compare technology that is installed and managed in-house and technology that is offered “in the Cloud” in terms of the associated key benefits and risks. Provide an example or a scenario of each technology that is best used to support your response.
Cloud Applications or Software as a Service (SAAS) refers to web services that can be used over the internet with absolutely no server and any application maintenance needed. These services may free of charge or may come with a subscription. The companies that provide these services take care of all the software installations, maintenance and update needs. The Clients are just required to sign a contract will these companies for n no years for the software and licenses. Various financial companies are using SAAS services for their budgeting solutions from vendors like Clarity (which is now a part of IBM), Hyperion, and Host Analytics etc. Other examples include companies like Facebook and Sales Force (Wolf frameworks, 2010).
Some advantages of Cloud Computing are as follows:
Scalability: Easy to grow and or shrink to match your demand. If you need one, two or ten servers with cloud hosting you can easily grow or shrink the no of computers you need.
Instant access: Cloud hosting is instant. The computing power is instantly available in the cloud. You can turn it on whenever you need it and turn it off when you don’t. It acts just like a commodity, like electricity you turn it on and the meter starts running, you turn it off and the meter stops.
Cost Effective: You can save money by not investing equipment that may sit around when you don