Companies must consider many factors to decide which IT infrastructure is the right fit. Some enterprises are not able to transfer into the cloud, so they rely on their on-premise software and applications to conduct their business operations. However, due to newfound flexibility, scalability, and agility for enterprises – cloud computing has grown in popularity. Sure, on-premise applications are secure, reliable, allow companies to maintain control on a level that the cloud often cannot. But, in addition to on-premise systems, enterprises will need to leverage new SaaS and cloud applications due to the agreement among IT decision-makers. This solution is called the hybrid cloud.

When you understand the basics of on-premise and public cloud computing, you’ll see that there are many different ways to deploy your cloud resources.

On-Premise Computing

The on-premise solution refers to when a company hosts its computing resources in their private data centers. Also, it can be hosted by a third-party provider. It is a private cloud where both hardware and software are dedicated to one organization, and the infrastructure and services are maintained on a private network. The on-premise solutions are often used by financial institutions, government agencies, and other organizations that need more control over their computing environment.

Public Cloud Computing

Public cloud computing is what people typically refer to when they speak about cloud computing. The cloud resources, such as storage and servers are both owned and operated by a third-party provider. It means that all the supporting infrastructure is owned, managed, maintained, and secured by the cloud provider. The infrastructure is shared by “cloud tenants” – other organizations using services from the same third-party cloud provider. Enterprises manage their accounts and access services by using a web browser.

On-Premise vs. Public Cloud – Key Differences

• Security

Cloud – Security is the main barrier to the deployment of cloud computing. Due to many publicized cloud breaches, IT departments are concerned about security threats, such as loss of intellectual property and personal information of employees and customers.

On-Premise – On-premise environment provides a higher level of security, which is why banking and government organizations use it. If you have extra-sensitive data and information, the on-premise solution makes more sense.

• Deployment

Cloud – In a public cloud environment, enterprises can access their resources whenever they want. However, the resources are stored in data centers of the third-party service provider.

On-Premise – Resources are deployed within a company’s IT in-house infrastructure. Also, the company is responsible for maintaining and managing the solution and other related processes.

• Control

Cloud – The third-party provider has all the data and encryption keys, so an enterprise may not be able to access their data in case the unexpected happens. There is the question of data ownership.

On-Premise – Companies own and store all their data, meaning that they’re in control of what happens to it.

• Cost

Cloud – If you choose to go with the cloud computing model, you pay for the resources you use, but don’t pay for upkeep and maintenance costs.

On-Premise – You are responsible for the costs of power consumption, space, and hardware.

• Compliance

Cloud – Companies that choose this model must ensure that their third-party provides compliance with all the regulations within their industry. Employees, customers, and partners must have their privacy assured, and all sensitive data must be secured.

On-Premise – There are many regulatory controls under which companies operate today (regardless of the industry.) For example, there is FERPA (Family Educational Rights and Privacy Act) and HIPAA (Health Insurance Portability and Accountability Act), which are the most common ones. For enterprises that are subject to these regulations, it is essential that they remain compliant.

Hybrid Cloud

Hybrid cloud is said to bring together the best of both worlds. The hybrid cloud model is a combination of on-premise infrastructure with public cloud computing. In a hybrid cloud, there are more deployment options and greater flexibility because applications and data can move between public and private clouds. For example, you can use the on-premise infrastructure for business-critical operations and sensitive data, and the public cloud for low-security, high-volume needs. There is also the option of “cloud bursting” – when a resource or application runs in the on-premise infrastructure until there’s an increase in demand. To tap into more computing resources; the enterprise can burst through to the public cloud.

Advantages of Hybrid Cloud

• Ease of transition – Hybrid cloud allows you to mitigate gradually to the cloud, phasing your workloads over time, so the change doesn’t have to be overwhelming.
• Flexibility – There are additional resources in the public cloud which you can take advantage of when you need to.
• Control – For sensitive data, your enterprise can maintain a private, on-premise infrastructure.
• Cost – You pay for extra computing power on the public cloud only when you need them.

Today, many organizations are bypassing central IT governance and relying directly on public cloud services. Whether they want to centralize their management of resource and adopt the hybrid IT operating model, it’s up to them. But the fact is that the hybrid model comes with many benefits, combining the best of both worlds. ONUG organized its Hybrid Multi-Cloud Working Group to develop a standardized framework that will allow large enterprises to adopt open hybrid cloud products and services.