On-premise solutions: 5 reasons why they’re getting more popular

Lately, on-premise solutions are experiencing an upsurge. 

Although many companies choose cloud computing for its convenience and scalability, organizations prioritizing airtight security, complete control, and privacy prefer leveraging on-premise solutions. 

On-prem deployment has many unique benefits businesses can capitalize on, such as in-house storage of data and software, lower network bandwidth cost, easier compliance, and more. 

In this article, we explore why on-premise is the ideal deployment method for some organizations and give you a list of best on-prem solutions. 

What are on-premise solutions?

On-premise solutions refer to the software and applications that are installed and operated using a dedicated server lodged at the physical premises of a business. An often-used synonym is self-hosted solution.

These are a traditional alternative to cloud-based solutions that are hosted remotely through the internet and accessed through a browser, mobile app, or custom interface. The IT department of an organization is responsible for maintaining on-prem infrastructure. Therefore, the business can exercise complete control over the server hardware, data security, and configuration. 

➡️ How are on-premise solutions different from cloud-based solutions?

In contrast, cloud-based solutions are managed by third-party service providers who work on a subscription basis to deliver on-demand computing resources. Their data centers are located in different parts of the world, and multiple organizations share computing resources. 

Therefore, with cloud-based solutions, businesses cannot expect the same levels of privacy, control, and in some cases, security of their business-critical data.

➡️ Data security concerns in cloud solutions

Until now, companies were on a spree to move their data and software to the cloud setting to reap multifold benefits of cost, scalability, and flexibility. 

However, with rising concerns about data security and privacy in the cloud, organizations are rethinking a comeback to on-premise solutions. 

In the following section, we delve into the benefits of on-prem deployment that guide the motive behind the reverse cloud migration trend. 

4 key benefits of on-premise deployment

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1. Enhanced security

Security and loss of control over data and entrusted information remain a concern for organizations, particularly those that handle sensitive information. On-premise solutions offer enhanced data security than cloud systems, as only authorized personnel can access sensitive data and information. After all, knowing that your data is safe within your in-house servers brings more peace.  

2. Adherence to regulatory compliance

Currently, businesses are bound by some form of regulatory control irrespective of the domain or industry in which they operate. 

The most common and popular among businesses is the General Data Protection Regulation (GDPR), which aims to regulate businesses that collect personal data. There are several other data privacy regulations, like the Health Insurance Portability and Accountability Act (HIPAA), the Family Educational Rights and Privacy Act (FERPA), and more.

For businesses bound by such regulations, on-premise deployment can help ensure thorough compliance and avoid hefty fines and penalties.

3. Ensures data sovereignty

Organizations are bestowed with different responsibilities when it comes to storing data in different geographic locations. With cloud systems, it is not always clear where the data is stored.  

Certain countries restrict data transmission outside the home country. Also, in countries like the EU, physical location is a prime determinant when deciding the applicable laws and norms. For example, MS Office was banned from use in German schools after being proclaimed non-compliant with GDPR.

As the location of data centers remains blurred in cloud systems, monitoring the data flows and determining what laws are applicable becomes problematic. 

Also, if the third-party service provider in cloud systems operates in multiple jurisdictions, they may be subject to different regulations that complicate compliance adherence and data sovereignty. 

On-premise solutions help you retain complete data ownership and comply with the regulatory framework in force in that jurisdiction. 

4. Lower maintenance costs

With on-premise solutions, you own the hardware infrastructure, application, and software programs. So, the cost of maintenance is lower. 

Beyond that, there is no need for a high-speed internet connection, and you don’t have to opt for an expensive organization-wide data plan. 

With on-premise deployment, you are paying for the licenses at once. This helps avoid recurring subscription charges and lowers the Total Cost of Ownership (TCO). 

5. Highly customizable

On-prem solutions can be customized to a greater degree than subscription-based cloud systems. It is your go-to if you operate in a niche with far more requirements beyond the standard hardware, software, or compliance tools. 

Limitations of on-premise solutions

However, on-premise technology has a few concerns that you must consider before planning your investment into on-prem deployment. 

1. Capital heavy

On-premise solutions require you to own the end-to-end responsibility from setup to maintenance, which needs substantial resources. You need a dedicated IT team experienced in data security tools and disaster recovery steps. The staff is also expected to be responsible for hardware and software maintenance, data backups, and storage.  

2. Consumes more physical space

As the entire infrastructure is housed inside the business establishment, the on-premise solutions demand extra footage in your workspace. 

3. Downtime may be high

There is considerable downtime if your hardware malfunctions or software needs to be updated. Restoring the operations may take longer if the in-house team cannot solve the problem and requires an outside expert. 

4. Off-site workforce may endure challenges

With on-premise solutions, sharing access to a remote workforce and off-site employees is relatively challenging. 

6 Popular on-premise solutions for privacy-conscious organizations

Businesses operating in industries like government, healthcare, financial services, defense, and education care about where and how their data is stored. Some traditionally rely on on-premise software, while others use cloud solutions. 

Here’s our list of on-prem solutions for businesses that emphasize more about data security. 

1. Rocket.Chat

Rocket.Chat is a robust communication platform built with a deep focus on data security and privacy. It enables secure data sharing and can be deployed in both on-premise and cloud systems. 

This secure team chat app enables on-premise deployment to organizations dealing with sensitive data and helps mitigate the risk of data breaches. It enables you to retain full data ownership. The on-premise communication solution offered by Rocket.Chat can be hosted behind your firewall or on an air-gapped network.

It also has a native integration with Pexip, a highly secure video conferencing solution, and can be used as a support for multi-level security to organizations in Government and Defense.

Security Features

• Layered security options (e.g., SSL, VPN, and DMZ)
• End-to-end encryption
• ISO 27001 certified
• Compliance with requirements of GDPR, HIPAA, LGPD, and more
• Role-based access restriction
• Open-source code
• Access to conversation history