Cloud software vs on-premises - choosing the right tool

When it comes to deciding between software in the cloud vs. on-premises, opinions differ in controlling. What are the specific pros and cons of the two types? Which software suits which requirements? This blog is intended to help you make the right choice so that you can operate as efficiently as possible in controlling in the future.

Different requirements - different solutions

Whether cloud or on-prem depends not only on personal preference and the size of the company, but is quickly decided when it comes to the specific requirements of the service. Our thesis is that many users indicate that more work needs to be done in the cloud. Let’s take a closer look at this based on the “speed”, “performance”, “security” and “availability” aspects of your business planning.

Performance

In today’s controller world, one thing counts: The speed with which the desired results are presented. The differences between cloud and on-prem can start with implementation time. Several factors play a role here, including the complexity of the software, the company’s infrastructure and technology, and the time required for updates and maintenance. In general, cloud software is often faster to implement and requires less maintenance, as this is all handled by the provider. With on-prem software, a strong in-house IT department is essential. Without it, on-prem software quickly becomes a nightmare and a cloud provider is recommended. Especially long waiting times when downloading and problems when sending large amounts of data complicate the everyday life of a controller.

In addition to the implementation time, the speed of the software is crucial. The keyword is “real-time access”. For a controller, it is important that his data is available at the push of a button. Server capacity is a critical factor. If there is not enough server capacity, even the fastest software will take a long time to load. Especially small companies usually have less server capacity than cloud providers.

This is one of the reasons why many companies are moving to the cloud. After all, insufficient server capacity is not just a headache, it also costs a lot of money. The more users that work with the software, the more complex and powerful the server needs to be. This means that at a certain number of users, many companies are forced to move to the cloud.

With cloud-based software, the capacity problem is completely eliminated because the provider is responsible for it. Again: If on-premise, then always with a well-equipped server infrastructure in the company. The same goes for trained IT staff. If these prerequisites are met, on-premises is the right solution, as a move to the cloud would usually mean more work and higher costs.

Functionality

Another requirement is the functionality of the software solutions used. With regard to integrated financial planning and operational planning, different software or a combination of both can be the solution here.

On-prem software is often sufficient for pure financial planning. This software is installed and operated locally on the company’s computers or servers. A key advantage here is the centralized implementation of financial planning, as all relevant data is collected and processed in one place. This not only leads to better control and security of sensitive financial data, but in many cases is also more cost-effective than cloud-based alternatives. On-prem solutions can be purchased once and then used without ongoing subscription costs, resulting in long-term cost savings.

In contrast, a cloud-based software solution is recommended for operational corporate planning. Operational planning often involves several departments and locations within a company and therefore requires a flexible and scalable solution. Cloud-based software enables agile planning, as it is accessible from any location and can be updated in real time. This is particularly beneficial when different teams at different locations need to work together. By using a cloud solution, everyone involved can access the latest planning data at any time and from anywhere and make changes immediately, which significantly increases the company’s efficiency and responsiveness.

Data security

Data security is an important aspect and a sensitive issue. If companies have always worked with on-premises, many find it difficult to make the switch as there is a fear for their data. In general, this fear is unfounded, especially with regard to German cloud providers, as our laws guarantee your data security. The situation is different with American providers, for example. If you decide to do this, it is essential that the provider in question is on the Data Privacy Framework list, as otherwise they can gain access to your data. You can use this link https://www.dataprivacyframework.gov/list to test whether your provider is already on the list.

So both on-premises and cloud are a secure solution if you observe these conditions.

Availability

These days, almost everyone has a smartphone and checks their messages, emails and social media channels every day. Why not take a quick look at the latest sales figures? Unthinkable in the world of on-premises, no problem with the cloud. Whether from a smartphone or tablet, availability is practically limitless. The result is greater productivity and flexibility. It is in the nature of many CEOs that they work virtually all the time and would like to be able to view their figures from the couch at home or at a customer meeting on site. Since the smartphone is always at hand, you can access your data in seconds with the cloud and retrieve it from anywhere.

Conclusion

In today’s world, there are many indications that large companies in particular will switch to cloud software. If you want to stay on-premises, you need to have basic requirements such as a good IT infrastructure and a manageable number of employees. Today’s market is changing rapidly and it is important to always be informed about your figures. This is possible at any time and from anywhere with a cloud solution. If the technical requirements of a company are no longer sufficient for a functioning on-premises software, this can usually lead to high costs and a cloud solution can therefore pay off better. What do you decide on?

You can test our cloud software free of charge via the link: https://getqvantum.com/landingpage/signup/