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30 July 2019 Marketing Group

What is the Difference between Cloud Computing and On Premises?

What is Cloud Computing?

Cloud computing is an internet-based computing and it uses internet as data and application management center, users also are given the right access to log in. A lot of leading IT companies in the world have been using cloud computing, such as Google (google drive) and IBM (blue cord initiative). While in Indonesia, Telkom is one of Indonesian companies that has been using cloud computing.

Types of Cloud Computing

Here are some types of deployment model on cloud computing :

  • Public Cloud

Public cloud is a type of cloud computing that is provided for general public. In Public Cloud, one server can be used for some users. There are 2 types of public cloud service. Those are free and paid service. For free service, it has facebook, e-mail, twitter, yahoo mail, instagram, etc.

For paid service, it has google apps, office, and adobe. The disadvantage of public cloud is it always need strong internet connection. If you have bad internet connection, it will prevent the process of public cloud.

  • Private Cloud

Private cloud is a type of cloud computing that is used privately for companies or for other specific users. Private Cloud can be used for 1 user only in one server.

The examples of Private Cloud service are SaaS (Web application, Mail Server, Database Server for internal needs), PaaS (Operation System, Web Server, Framework, Database for internal use), IaaS (virtual machine that can be requested based on internal needs).

  • Hybrid Cloud

Hybrid Cloud is one of cloud service that integrates both Private Cloud and Public Cloud to present multiple functions in the same organization.  Hybrid Cloud can be used for private or public in one server.

  • Community Cloud

Community Cloud is one of cloud computing service that is built exclusively for specific community and its application comes from organization that has the same concern on some things, such as security standart, rules and compliance. Community Cloud can be operated by one or more organizations from that community.

In some deployment models of cloud computing, it is also known as Cloud storage.

Types of cloud computing delivery models

Here are types of cloud delivery models:

  • Software as a Service (SaaS)

SaaS is a service to use the application that has been provided by a service provider to manage platform and infrastructure to run the application. SaaS is a software that is used through internet.

The examples of SaaS are google docs, facebook, paid CRM application, dropbox pro, and yahoo mail.

  • Platform as a Service (PaaS)

PaaS is a service to use the existing platform. Developer focuses on the application that is created without worrying about platform maintenance. PaaS is a platform supplier for developer that is provided through internet. We need PaaS when the provided application through SaaS is not in accordance with the requirement of business process that is contained in a company. PaaS allows us to creating, uploading, testing the application or arranges the required configuration in the process of application development. PaaS has the same concept as SaaS, we can do those things in accordance to the service that we choose with a certain price.

The examples of PaaS are Google AppEngine that provides application above Google platform with Phyton and Django (programming language). Another example of PaaS is Facebook that allows us to develop the application on facebook, such as game application that is created by Zynga.

  • Infrastructure as a Service (IaaS)

IaaS is a service for using provided infrastructure. IaaS also can be defined as a service that “lease” basic information of technology resource, such as media storage, processing power, memory, operation system, network capacity, and others that can be used by tenant to run their owned application.

The example of IaaS is has been released Amazon EC2 (Elastic Computing Cloud) and it provides some lease options. Start from CPU to media storage, it is equipped with operation system and application development platform.

What are the advantages and disadvantages of Cloud Computing?

The advantages of cloud computing are :

  • Easy access
  • Cost efficiency
  • Increase cash flow and return on investment
  • Easy to add capacity
  • Easy to monitor and server management
  • Increase data availability
  • Focus on business development


  • The providers is not consistent for service performance
  • Your data will be accessed by another user because it is shared hosting.
  • Data ownership refers to the allowance of data share from cloud service and a way to get the data if users do process of termination into cloud computing service.

After knowing about cloud computing with its advantages and disadvantages, now it is time to understand about On Premises.

What is On Premises ?

On Premises CRM (Customer Relationship Management) is CRM that is applied conventionally, It starts from the procurement to setting up infrastructure or software created by the company itself (intern). Start from server, developer, design, etc. Company can easily control all existing database because all data are stored in their own location, but it costs more because they have to hire IT teams.

The advantages of On Premises

  • The security is handled by organization
  • Hosting organization is in your location (handle your own solution)
  • Organization has more control in implementation
  • It costs more at first investment and is considered risky
  • You have to pay for hardware maintenance
  • It causes software update problems
  • There are maintenance for operating system update and supporting system.

The explanation above has given the information about Cloud Computing and On Premises. As described above, Cloud Computing and On Premises have their own disadvantages and advantages. The explanation above may help you to consider the right choice for your company’s needs.

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