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_SMBs are often faced with the dilemma whether they should go for a hosted or an on-premise solution. There is really no right or wrong answer but companies need to assess their business needs and infrastructure before taking a decision. The fundamental point is that not all solutions work best in the Cloud or on-premise and the choice often requires a trade between features, security and costs to optimize returns.  There are advantages and disadvantages with both platforms and these are subject to the type of software/service under consideration. The table below outlines the advantages and disadvantages of the hosted and on-premise delivery model.

On-Premise

  • Control over all systems/data
  • Corporate data is stored/handled internally
  • IT staff for maintenance/support
  • Initial investment is high but pays off over time

Hosted

  • No large up-front purchase cost
  • No new infrastructure requirements; eg. servers
  • Low cost for services
  • Third parties are doing hard work