Why Cloud Is Better for SME Than On-premises

The demand for cloud solutions is constantly growing and there is no indication that this trend should take a opposite direction. It is no coincidence that the world of business has slowly moved to the cloud. For small and medium-sized businesses, on-premises are simply an unnecessary luxury.

So, why is it worth investing in on-premise solutions mainly for large businesses and institutions?

Which is more secure?

One of the main arguments and concerns that companies have in favor of on-premise solutions is the issue of security. Of course, governments or banks must meet a higher level of security and privacy requirements. However, creating such a complex on-premise environment is associated with high maintenance costs and the hiring of qualified individuals. Which might be the biggest challenge in the current shortage of IT professionals.

SMEs work with sensitive data too but cloud solution is usually still safer for them. For example, some smaller IT companies like to choose on-premise CRM software, but this is more because they already have the necessary facilities and staff. The level of security of software companies is beyond the affordability of most SMEs, so your data is often more secure in the cloud than on in-house server.

The price of the cloud includes more than you think

Let ‘s stick to the same example. Imagine that you download free CRM. Would it really be free for you if it were on-premises? Unfortunately, not, only the license itself would be free.

On-premise solutions usually have a lower total cost than a cloud software from a long-term perspective. But we must not forget the maintenance costs such as hardware, IT, or energy. All of this plus support is included in the price you regularly pay for a cloud license. Predictable monthly payments that cover software license, support, upgrades, and daily back-ups are usually more reasonable to most SMEs.

Don’t worry, it’s in the cloud

Is cloud better than on-premises? The answer to this question really cannot be an undeniable yes. It really depends on the size of business, on the industry, and many other factors.

SMEs can really enjoy cloud-based software because of zero responsibility for maintenance, scalability, and high level of security from day one. The deployment of cloud-based software is also very quick.

Right, the price of cloud solution may be higher in total, but as already mentioned, you only buy a license at the full price of on-premise software. Moreover, the difference can only become apparent after a long time. For most SMEs, monthly payments pay off richly thanks to worry-free nature of cloud-based software.


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