ICT 273 Information Technology Management

Comparative Analysis between On-premises and

Cloud Servers.
Lucman M. Abdulrachman*
1
Conding St, Lomidong, MSU Main Campus, Marawi City, Lanao del Sur, Philippines
a
lucman.abdulrachman@g.msuiit.edu.ph

Abstract—Understanding the differences between On- B. Cloud Servers

premises and Cloud Servers are vague for some with minimal
background on both. Cloud computing has become the ideal way to
deliver enterprise applications [1]. But still, On-premises servers
are important part of enterprise infrastructures: they provide file
and networking support and host line-of-business applications [2].
This paper aims to compare On-Premises servers or Cloud servers
and identify the advantages and trade-offs of using either or both.
On-premises servers refers to the use of the company’s own server
and IT environment – on site (local/private network). Cloud Server
refers to services running on servers in the internet.
To compare both the author discusses the differences
from the two in terms of architecture aspects; quality attributes
such as modularity, scalability, usability, and security; and costs in
development and maintenance based on his present knowledge and
experience in the IT industry in chronological approach.
Keywords—architecture, on-premises server, cloud
server, non-functional, quality attributes.
Cloud Servers are also known as Cloud Computing refers
to running workloads remotely over internet in a commercial
provider’s data center, also known as “public cloud”. Cloud
Computing also refers to virtualized pool of resources, from
compute power to application functionality, available on demand
[1].
III. ARCHITECTURE COMPARISON
On-premises server setup were the default setup of
applications during the earlier years information systems. During
that time, most on-premises approach uses but not limited to
Client-Server or N-tiered/Layered architectural design patterns.
With Client-Server, clients are desktop applications
developed with development platforms such as Java Forms,
Delphi, Borland C++ and connects to remote database server which
were mostly relational database such as PostgreSQL, MySQL. thru
connector ODBC connector. See Fig 1.

I. INTRODUCTION
Every organizational technical issue in terms of network Desktop Application
setup and challenges may have several solutions that fits and/or
not. This is one of the important decision makings that needs to
done by the software architects during early stage or analysis phase ODBC
of software development. Considering the customer constraints
such as networks issues or available IT infrastructure is necessary.
Leaning to a full cloud solution has equivalent trade-offs that on-
premises servers can provide. And on the other-hand, inclining to DB
full on-premises server setup has trade-offs that cloud solution can
provide. Some organizational problems can be solved by full cloud
solutions, on-premise, or hybrid. To help readers understand the Fig 1: Application using Client-Server Design Pattern
how experience architects decides which approach are taken by the
development team, this paper defines and compares the With N-Tiered/Layered Architecture is the improvement
differences, pros and cons between on-premises servers and cloud of Client-Server design pattern where Clients are desktop or mobile
server setups. browsers using HTML/CSS technology and connects to web-
servers using PHP/Apache, JSP/Tomcat, ASP/.NET that serves
II. Definitions application server by hosting HTTP protocol and source its data
from remote or local database that usually relational database such
as PostgreSQL, MySQL. See Fig 2.
A. On-Premises Servers

On-premises refers to the use of the company’s own

servers and IT environment – on site [2]. With this usage model, a
customer often buys or rents server-based software as a licensee or
develops own software, which is installed on their own servers or
rented servers. Since the software runs in their own data center on
their own or rented hardware, this is also called “inhouse” [5].
 ICT 273 Information Technology Management
Browser
Web Server
DB
Fig 2: An Application using Layered Architecture
To address quality attributes such as efficiency, usability
in the modern software development, design approach that are
compatible to cloud setup have raised such as SPA (Single-Page-
Application) which loads UI resources and UI logics on client’s
browser at first-load or bootstrap and PWA (Progressive-Web-
Application) which improves SPA by allowing some of application
logics to run on client-side and allows offline runtime by allowing
users to install the app for offline.
In contrast, cloud computing did likely start with
development of SOAP web-services thru WSDL (Web Services
Description Language) an XML based communication protocol
allowing RPC (Remote Procedure Call) method calls of an object
remotely. SOAP web-services later lead the introduction of REST
web-services an JSON based web-services but mostly used for
CRUD operations which is now standardized as RESTful web-
services.
RESTful Web-services have refined the use of layered
architecture by allowing web-services to focus on data
management or CRUD operations, and introduce application
servers to focus on business logics, while UI to focus on UI logics
thus refined the use Separation of Concern (SoC) in vertical
aspects. With the use RESTful services also introduces the
modularity of services applying domain-based SoC in horizontal
aspect which is now known as microservice architecture.
Microservice architecture is now widely used in
enterprise applications running on cloud data-centers that on
internet. Microservice architecture also allows the use non-
relational databases or NoSQL databases information about data
science dealing with big-data.
Hosting applications in an On-Premises server setup does
not limit software developers to use technologies and/or
architectures that are designed for cloud platform. Some cloud
applications are developed in an On-Premise setup and was
deployed on cloud thru CI/CD (Continuous Integration/Continuous
Deployment) pipeline.
IV. Quality Attributes
In software architecture, application of design principles
such as SOLID principles [3] to address non-functional
requirements such as modularity, scalability, usability, and security
are necessary.
A. Modularity
With modularity, also known as Separation of Concern
(SoC) or Single-Responsibility-Principle (SRP) in SOLID
principles which states that every module or function in a computer
program should have responsibility over single part of the
program’s functionality, which it should encapsulate [3]. It can
apply on vertical or horizontal aspect of the program components
or application modules. But modularity quality attribute is close
horizontal aspect of Separation of Concern.
With application using layered architecture, separation of concern
in horizontal aspect can be applied on all layers in code level,
component level, or modular level. Modularity refers to modular
level of SoC.
Module Module Module
Component Component
Code
Functions
Component
Functions
Fig 3: Separation of Concern at various levels
Separation of Concern can be applied UI layer,
Application Layer, and/or Data/Service Layer of the application.
Regardless of the application whether it is running in an on-
premises server setup or cloud setup. Modularity is applicable and
necessary to be considered in the analysis and design of the
application. Modularity is the quality attributes being address by
SOLID design principles Single-Responsibility-Principle and
Interface-Segregation-Principle [3].
In microservice architecture, microservices are
modularized in terms of domain subjects and database sources of
each microservice are advised to be using a different database from
other microservices. In-fact, an enterprise application may use
multiple types databases from relational database to NoSQL
databases at the same time. Relational databases are usually used
for services dealing operational information with multiple entities
with relationships. NoSQL databases such as Key-Value Store, or
Column-oriented databases are used for big-data with minimal
entity relations. Graph NoSQL databases are used for domains with
too many entities and relationships that are difficult to manage in
relational database.
B. Scalability
Scalability is the measure of a system’s ability to
increase or decrease in performance and cost in response to
changes in application and system processing demands [4].
Scalability is a quality attributes that relates to another quality
attributes availability.
In an On-premise server setup, has scalability issue
especially with desktop application using Client-Server design
approach. Multiple instances of client applications that connects to
single relational database thru ODBC connector. With instances of
having higher traffic of database connections to the database
causing higher number DB session in the database. Relational
databases are designed to multiple DB sessions by implementing
transactional approach but performance is also sacrificed causing
too much consumption on memory (RAM). Increasing the memory
capacity of the database would not address it.
 ICT 273 Information Technology Management
The performance or memory issue caused by too many
DB connections can be address in layered architecture by using
singleton database connection on web-server or application server.
In this application serves and middle layer that has the only access
to the database which minimizes the memory load of database
server. But these setup increases the workload of application
servers. For some organizations, such as school institutions with
manageable traffic on-premises with layered architecture is
acceptable.
But cloud servers with information systems that cater
huge number of traffic such as social media sites such as YouTube,
Facebook, and Google. The need scale in web-service layer and
database layer is necessary to be clustered in different geographical
locations.
C. Usability
Usability refers to the quality of a user's experience when
interacting with products or systems, including websites, software,
devices, or applications [6]. Usability is a quality attributes that
relates to another quality attribute efficiency. Usability is mostly
realized on UI on multiple dimensions that includes intuitive
design, culture, satisfaction and others.
In an On-premises servers with desktop applications that
uses client-server design, it has issue on cross-platform
functionality and with higher risk for future technology deprecation
being outdated from support and trends. These issues about cross-
platform and technology-proof can be minimized by using layered
architecture where UI is implemented using browser web elements
using HTML5. Development of SPA UI frameworks such as
Angular, React, and Vue and the standardized UX element with
Materials Designs developed by Google have addressed mostly
usability issues.
In cloud computing, usability by efficiency is even more
improved by packaging applications into different platforms such
iOS (IPA), android (APK), progressing-web-application (PWA).
With PWA, web application can be used by the end-users
online and can install the web-application to his/her machine that
works even in offline-mode. With HTML5, it can support local
caching of information by the use local database thru localstorage
and/or indexedDB which are NoSQL databases that allows PWA
application to run fully offline.
D. Security
Security refers to providing a protection system to
computer system resources such as CPU, memory, disk, software
programs and most importantly data/information stored in the
computer system.
In an on-premise server using desktop application that
uses client-server architecture. The database security is handled by
the relational database itself. This approach is critical for possible
security bridges since the database is expected to cater multiple
database connections, and is difficult to determine malicious access
to the database with proper firewall setup. But even with strict
firewall setup, security bridges to the database is still at risk.
With layered architecture, security risks to the database
can be minimized by limiting the number of connections to
singleton in web-server or application server. Plus, the application
server adds more layer of security on application layer by having
authorization and authorization mechanism.
In cloud computing using microservice architecture,
additional layer of security is handled by API gateway,
microservices under the API gateway are freed from burden on
handling security measures except security management for
database connections such as relational database. Microservices are
only accessible via single API gateways that handles security and
orchestration of information thus minimize the negative effects of
tighter security.
III. COST IN DEVELOPMENT,
DEPLOYMENT AND MAINTANCE
Cost refers the resources necessary to be accomplished
for the development, deployment and maintenance of a software
application. The cost differs whether it is done, on-premise or on-
cloud.
On-premise server setup has higher cost at start but does
not have reoccurring maintenance cost. Cloud services on the other
hand is cheaper at start but comes with reoccurring maintenance
cost. In business perspective, going cloud is better because
consumers have the options to continue or discontinue
subscriptions to cloud subscriptions and expenses cloud
subscriptions can be charged from revenue of the company.
In software development, going cloud is almost free.
GitHub for examples, open their services to private organizations
host private repositories, with CI/CD support via GitHub Actions
for free with some integration limitations. For development
servers, VMs with VMWare or VirtuaBox can be used.
Containerized server setup with docker which is easier to setup
than VM is also possible for free.
In deployment, On-premises is free of charge, but could
be costly in time if managing big enterprise application setup. Thu,
this can be minimized by establishing CI/CD setup for your
enterprise application.
IV. CONCLUSION
In conclusion, the decision of using on-premise server or
cloud server depends on business needs and constraints that the
consumers or end-users have. For organizations like school
institutions and/or retail institution where importance of
availability quality attributes of the system is very high, the use of
on-premises or hybrid is necessary. For end-users with limited
internet connections, cloud solutions could be possible with PWA
applications similar to Messenger App of Facebook that works
even offline and synchronizes to the cloud when it gets online
again.
In my experience in the IT industry, I have worked with
system in retail industry, for retails stores like super-markets on-
premises or hybrid is used. But on specialty retail stores like
boutique cloud platform is used.
None of the two is perfect for every problem, the best
solution I could think of in the perspective architectural approach
combination of both (hybrid).
REFERENCES
 ICT 273 Information Technology Management

[1] Eric Knorr, “What is cloud computing? Everything you need

to know now”.
https://www.infoworld.com/article/2683784/what-is-cloud-
computing.html
[2] Simon Bisson, “Microsoft: Why Windows Server will
continue to be delivered on-premises”
https://www.techrepublic.com/article/microsoft-why-
windows-server-will-continue-to-be-delivered-on-premises/
[3] Rober C. Martin
Principles of OOD
http://butunclebob.com/ArticleS.UncleBob.PrinciplesOfOod

[4] Gartner
Information Technology Glossary > Scalability
https://www.gartner.com/en/information-
technology/glossary/scalability
[5] IONOS
On-premises: the license model for server-based software
https://www.ionos.com/digitalguide/server/know-how/what-
is-on-premises.