Hosting On Premise vs Cloud

By Madata

Four server stacks connected to a cloud icon

When a company uses an ERP, the second important decision to consider is whether to choose an on-premise or cloud infrastructure.

There is no easy answer to knowing which option is better, so we will show you some differences between cloud and on-premise infrastructure since many new companies wonder where to invest or direct their technological efforts.


The on-premise software is installed on the company's local servers. It allows physical access to information and controls the configuration and security of the data. 

Important information about the On-premise service and infrastructure:

  • Normally, the infrastructure is in the same building
  • The purchase of the infrastructure is through a Capex.
  • Access to data is commonly local.
  • It is necessary to have specialized personnel to administer the equipment.
  • Scaling takes longer since equipment needs to be purchased.
  • There is not as much dependence on Internet links for business continuity.
  • There is greater control of the services since the administration is handled autonomously.
  • You must always take great care of flexibility to be prepared for the company's exponential growth. 


The Cloud solution offers access to the Internet quickly and efficiently, reducing the cost and investment time in its installation. It allows rapid scalability, with the option of monthly payments and according to your company's needs.

Important information about the Cloud service and infrastructure:

  • Infrastructure maintenance or updates are the responsibility of the provider.
  • You don't need people for the infrastructure.
  • Physical space for the equipment is not necessary.
  • The provider handles data protection.
  • You have a high dependence on internet links for business continuity (It is advisable to have link redundancy).
  • The scalability of the machines is agile.
  • No specialized infrastructure personnel are needed to manage the services.
  • The cloud is managed as Opex (payment for the service is commonly made monthly).
  • Those initial investment costs are eliminated.


In summary, cloud systems are the future for most companies. On the other hand, on-premise infrastructure is not going to go away completely. There is already a dependence on both, and the trend is to have it in a hybrid way because there are certain services on which there is a dependency on being local. 

We invite you to analyze your operation and determine which of your services are candidates for Cloud and/or on-premise deployment.

Write to us at contacto@madata.comand a specialist will gladly assist you. 

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