What is Difference between On-premises & Cloud?

On-premises servers is the server that we open in our data centers, Cloud servers are the server we buy from the cloud providers like Azure, AWS, GCP Etc. To know more about the cloud infrastructure in Azure you can go through the Azure AZ-900 fundamentals course which will give enough details about cloud

On-Premises and Cloud computing are two different approaches to hosting and managing computer resources. Here's a breakdown of the key differences:


1. Infrastructure Ownership: In an on-premises setup, organizations own and maintain their own physical hardware, including servers, networking equipment, and storage devices. The infrastructure is located within the organization's premises or data centers.

2. Capital Expenditure: Acquiring and maintaining on-premises infrastructure involves significant upfront costs. Organizations need to purchase and manage hardware, software licenses, and associated infrastructure components. This includes costs for hardware upgrades, maintenance, and skilled IT staff.

3. Control and Customization: On-premises infrastructure provides organizations with complete control over their resources. They can customize the infrastructure, network configurations, security policies, and software stack to meet specific needs. This level of control enables organizations to address unique requirements and compliance regulations.

4. Security and Data Control: With on-premises infrastructure, organizations have direct control over the security measures and data protection practices. They can implement their security policies, encryption standards, and access controls to safeguard sensitive data. This level of control provides reassurance to organizations that have strict security and compliance requirements.


1. Infrastructure Outsourcing: Cloud computing involves outsourcing infrastructure and services to third-party cloud providers. The providers maintain the physical infrastructure, including servers, networking, and storage, in their data centers.

2. Operational Expenditure: Cloud computing follows a pay-as-you-go model, where organizations pay for the resources and services they consume. This eliminates upfront capital expenditure, and costs are typically based on usage, providing scalability and cost flexibility. Cloud providers handle infrastructure maintenance, upgrades, and support, reducing the burden on organizations.

3. Scalability and Elasticity: Cloud services offer scalability, allowing organizations to easily scale resources up or down based on demand. They can provision additional servers, storage, or computing power as needed, enabling flexibility to accommodate fluctuating workloads. This elasticity allows organizations to optimize costs and handle peak traffic efficiently.

4. Global Availability and Accessibility: Cloud services are accessible over the internet, enabling global availability. Users can access applications and data from anywhere with an internet connection. Cloud providers often have multiple data centers across regions, offering high availability and redundancy for improved service continuity.

5. Managed Services and Automation: Cloud providers offer a range of managed services, such as databases, AI/ML services, analytics, and more. These services offload the burden of infrastructure management and enable organizations to focus on application development and innovation. Cloud platforms also provide automation tools for provisioning, deployment, and management, streamlining operations.

6. Shared Responsibility Model: In a cloud environment, the responsibility for infrastructure security is shared between the organization and the cloud provider. The provider ensures the security of the underlying infrastructure, while the organization is responsible for securing their applications, data, and access controls within the cloud environment.

Both on-premises and cloud approaches have their advantages and considerations. Organizations must evaluate their specific requirements, budget, security needs, and scalability demands to determine the most suitable approach for hosting their IT infrastructure and services. It's also common for organizations to adopt a hybrid model, combining both on-premises and cloud resources to leverage the benefits of both approaches.

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