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Cloud vs On premise, the big decision of companies in the face of the need for digitalization

Mobilvendor
9/6/25

One of the big decisions that companies must make in the face of digitalization is whether they adopt a Cloud system, also known as a cloud system, or prefer an on premise solution. In this article, we will tell you what each of them consists of and what are the advantages and disadvantages of leaning towards one or the other.Contents hide 1 What is a Cloud system? 2 What is an On Premise system? 2.1 What are the advantages of a cloud or cloud system? 2.2 What are the disadvantages of a cloud or cloud system? 3 What are the advantages of an on premise system? 4 Which of these systems should you choose if you are in the retail sector? What is a Cloud system? Cloud or cloud systems are a type of software as a service, also known as SaaS, for its acronym in English, that provides access to data processing, storage and other Internet resources. This can be done through remote servers or through virtual private networks. Cloud systems are usually accessed through an Internet connection and they use virtualization technologies to provide services on demand. Hire service/business automation with business software What is an On premise system? A local system, on premise, is a software application that is installed on a company's own servers. It can be used for many purposes, such as accounting and payroll. What are the advantages of a cloud or cloud system? Cloud systems store data and resources on a set of servers. They are often called “clouds” because they are the opposite of a hard drive, which stores data on a physical device. Clouds have many advantages such as: -Profitability-Easy access to information-No need for an IT department-Easier to scale-Easier to share information What are the disadvantages of a cloud or cloud system? Rather than disadvantages, let's talk about false myths about cloud systems.— Security: Some people believe that with a cloud system the user has no control over the data, so it is susceptible to being deleted by a third party. However, this is considered more of a myth than a disadvantage in itself. Many of the world's largest companies use these types of systems to manage their data, precisely because of the security they offer.— Cost: Companies pay for hosting and cloud services, regardless of their use. Therefore, if cloud services are not used, this expense is useless. However, the purchase and maintenance of your own infrastructure is almost always more expensive than a cloud system. The only disadvantage we could note about this type of system are the technical drawbacks. Sometimes, there are problems with the operation of cloud applications due to problems with the server or with the networks. What are the advantages of an on premise system? Among the advantages of this type of system, we can mention that, sometimes, the response time is much faster than that of a remote server. Another advantage is that the security of the system can be guaranteed, since there is no element external to the organization. And also, that it's easier for users to connect to the system because it's within the same internal networks. On-premise systems have several disadvantages. One of the main ones is that the costs are quite high, because they require a significant investment to maintain the server, infrastructure and equipment necessary for the operation. In addition, on-premise systems cannot be used without an internet connection. Which of these systems should you choose if you're in the retail sector? Undoubtedly, the choice depends on each type of business; but as we observe the changes in the market, the more we bet on cloud systems. This is due to the increase in e-commerce and the need to guarantee fast access, with certified security for payments, etc. MobilVendor provides you with a cloud service with Amazon Web Service, so your data, such as customer base, sales and everything else, are always protected. If you want to know a little more about our platform, read this article.