Why This Matters
Understanding the difference between cloud (cloud computing/SAAS/on demand software) and on-prem (desktop/downloaded) software and the advantages and disadvantages of each will help you make decisions around what type of software to choose.
Cloud Computing/Software
Cloud computing is a model where another organization owns the servers, storage, databases, and software, delivering them “as-a-service” to customers. Instead of owning the hardware and software, the organization pays to use the services when it needs them.
Some services that organizations pay for using this “on-demand” model include:
- Software (Software-as-a-Service, SAAS)
- Storage
- Databases
A lot of companies are choosing to use cloud software where so they don’t have to manage the cloud infrastructure and platform where the application runs. This eliminates the need to install and run the application on their own computer, which simplifies maintenance and support. It also provides increased accessibility for remote teams and to multiple locations or devices. However, in some cases it still makes sense to “download” software. This can be the preferred method in the case of older hardware (phone, computer), internet connectivity issues (in your area) and the cost (sometimes it’s a lower cost).
On-Premises (desktop/downloaded)
Referred to as on-premises or on-prem, this computing model consists of software downloaded to a physical device (phone/computer) that the organization owns.
Resources
Cloud Based Software vs Desktop Software – Answering the question: Is cloud based software likely to fit user needs better than the more traditional desktop software?
On Premise vs. Cloud: Key Differences, Benefits and Risks – Discussing the differences, benefits and risks of both options.
Recommendations
Understand the choices available for each type of software you need. For example Accounting software. Understand your needs for each category of software – does more than one person need to access the software at one time. Does the results of their input need to be reflected immediately (cloud) or will you merge results later (downloaded). Can your team access downloaded software remotely (i.e. screen-share using Zoom and remote desktop) What is the cost of each? Depending on the type of business you might get discounts on software. What features do you require? Do you gain more or less when you “move to the cloud”.
Review your current desktop software, and research if there are cloud options that would work better or be more convenient for your team.