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The on-premises system deployment refers to the deployment model where all the resources, including hardware, software and data are hosted and managed locally within our client’s own physical location, such as a data center or a server room.
In this model, our client fully owns and maintains the IT infrastructure. Our client’s internal IT team is responsible for everything from procuring and setting up the servers, network equipment, and applications to managing the software, security, updates, and maintenance.
Key characteristics of on-premises deployment
Physical location
All components are housed within the organization's premises.
Ownership
The organization owns and maintains all hardware and software.
Control
The organization has complete control over its systems, data, security measures, and configurations.
Cost structure
It typically involves a significant upfront capital expenditure (CAPEX) for hardware, software licenses, and personnel, followed by ongoing operational expenses (OPEX) for maintenance, power, and cooling.
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Workflows
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FLEXIBILITY
On-premises deployment
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On-premises vs. cloud deployment
On-premises deployment is the traditional approach and is the direct opposite of cloud deployment, where a third-party provider hosts and manages the infrastructure, and users access the services over the internet.
Ownership
The organization owns the hardware and software The provider owns and manages the infrastructure Control
Full control over hardware, software, and data Shared control with the provider Cost
High upfront CAPEX, ongoing OPEX Pay-as-you-go OPEX, subscription-based Liability
Limited and time-consuming to scale
(requires buying and setting up new hardware)Highly scalable and elastic
(can scale resources up or down on demand)Maintenance
The organization’s responsibility The provider’s responsibility Access
Limited to the organization’s network
(requires complex setup for remote access)Accessible from anywhere with an internet connection
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Advantages of on-premises deployment
Full control and customization
Organizations have total control over their systems, allowing for deep customization to meet specific business needs and seamless integration with existing in-house systems.
Enhanced security and compliance
This model is preferred by industries with strict data privacy and regulatory compliance requirements (e.g., finance, healthcare, and government), as they can maintain data sovereignty and implement their own security measures and protocols.
Performance and reliability
With dedicated hardware and local data access, on-premises systems can offer superior performance and low latency, which is crucial for mission-critical applications and high-performance computing.
Cost predictability
After the initial investment, costs can be more predictable in the long run compared to the variable, consumption-based costs of cloud services.
No internet dependency
Operations are not dependent on a stable internet connection for the core system to function.
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Disadvantages of on-premises deployment
High initial cost
The upfront investment in hardware, software licenses, and physical infrastructure can be substantial.
Maintenance responsibility
The organization is solely responsible for all maintenance, upgrades, security patches, and troubleshooting, which requires a skilled and dedicated IT team.
Complexity
Managing the entire infrastructure can be complex and resource-intensive.
Limited scalability
Scaling up requires purchasing and installing new hardware, which is a time-consuming and costly process. Scaling down can lead to unused resources.
Disaster recovery
Implementing a robust disaster recovery plan can be challenging and costly, as it often requires replicating the entire setup in a second physical location.
