There are a number of pros and cons when deciding between cloud and on-premise. In this article we look at both to help you take a balanced view.

The primary objectives for field service businesses will undoubtedly include:

• Improving business performance
• Increasing efficiency and productivity in the field
• Creating a great customer experience

In order to fufill these objectives successfully field service management software is essential.

Making the decision to invest in an existing software, or to switch platforms completely involves a lot of tough decisions; the toughest of which will be whether to deploy software into the cloud or remain on-premise.

There are a number of pros and cons to both options, and in this article we will look at both to help you take a balanced view.

On-Premise

On-premise solutions are installed and hosted in your own data centre and are managed by your IT team. These solutions are typically purchased with a large up-front investment that don’t require incremental costs throughout the term of the contract, but do require regular servicing and maintenance. It can often be difficult for your IT team to manipulate existing on-premise solutions to support any new applications, integrations or updates.

Some of the advantages of having on-premise solutions:

• Uptime: With on-premise solutions you don’t have to rely on an internet connection or any external factors to access your software
• Control: You own everything; from data and hardware to software. This way you can decide on the upgrades, configuration and any changes to the system
• Total Cost of Ownership (TCO): You only pay for any user licenses once, so your Total Cost of Ownership (or TCO) is generally lower than that of a cloud equivalent

Some of the disadvantages of having an on-premise solution:

• Responsibility: With control comes great responsibility, and you are solely responsible for the maintenance of the server hardware and software including data backups, storage and disaster recovery, which can require significant budget and resourcing
• Implementation Times: Implementation time for on-premise solutions is usually much longer as it takes time to complete the installations on servers and each laptop/computer
• Large Capital Expenditure (CapEx): On-premise usually requires significant purchases upfront which means large capital expenditure is required. In addition to this you need to budget for maintenance and support

Cloud

Cloud solutions offer a greater benefit over time, with more flexibility to change the application to meet the needs of the business.  Most Cloud vendors deliver upgrades once to twice a year, and the ability to adopt and leverage that new functionality with relatively little disruption means that Cloud application users will generally get more from their applications on an ongoing basis.

Some of the advantages of having on-premise solutions:

• Predictable Costs: Cloud solutions require no upfront costs. Instead you pay monthly per user which makes it an Operating Expense (OpEx) rather than a Capital Expense (CapEx). Although the monthly costs add up over the period of the contract, all maintenance, upgrades, backups and support services are included in the monthly fee. There is usually limited commitment with most service providers offering one-year contracts.
• Reduced Strain on IT: This also reduces the strain on your IT team as these things are all taken care of by the service provider allowing your IT team to focus on strategy and aligning to business goals rather than being a fail-fix department. Cloud deployments incur 63% lower initial consulting costs than on-premise ones and on an ongoing basis, companies spend 55% less (on average) on personnel to support cloud applications compared to on-premise deployments
• Access: You are able to access the software anytime and anywhere on any device via an internet connection
• Quick Deployment & Easy Scalability: Because cloud-based software is deployed over the interest in can be done in a matter of hours/days as opposed to on-premise applications which need to be installed on the physical server or laptop/PC.
• Flexibility: Cloud solutions offer much greater flexibility when scaling the solution to meet the demand of your business. For example, it is easy to add or scale back licenses allowing you to pay only for what you use.
• Lower Energy Costs: By moving your software to the cloud you no longer have the cost of powering on-premise servers or maintaining their environment, reducing the amount that you pay on your energy bills.
• Security: Data centres used for SaaS solutions generally employ security measures that are beyond the affordability of most businesses therefore your data is generally safer in the cloud than it is in the servers in your office.

Some of the disadvantages of having an on-premise solution:

• Longer-Term Costs: Although cloud solutions require a lower upfront investment they can on occasion prove costlier over their life-cycle increasing the Total Cost of Ownership (TCO)
• Connectivity: Cloud solutions do require internet access. However, many field service solutions now offer the ability to continue working even when off-line, updating when an internet connection is re-established.
• Customisation: Cloud software is generally configurable but sometimes, depending on how it is hosted, a cloud solution is not able to cope with complex development

There is No Right or Wrong Answer

If you have read this far and are confused as to which way to go, know that there is no right or wrong answer to the cloud vs on-premise debate. Every organisation is different and has different requirements that will influence their decision. Here are a few questions to ask before you try to finalise your decision about cloud vs on-premise:

• Can you afford the upfront investment requirement for an on-premise solution? Or would you prefer to pay for your solution on a monthly basis?
• Do you have the resource capacity within your IT team to manage the maintenance required for an on-premise solution?
• Do you have the tools in place to ensure high level security and deal with back-ups and disaster recovery scenarios?
• How important is it to your business to have access to the most recent software functionality?

Our Final Piece of Advice

Before you embark on a decision why not consider doing an assessment to help you forecast the future state of your business? Our team of experts can help you look under the hood of your business to evaluate your business processes, and technologies and assess your organisation against our unique maturity model to provide you with recommendations that make sense for your business both today and in the future.

If you’re interested in a free consultation with our experts contact us today on 0844 414 5707 or email enquiries@leadentsolutions.com