On-premise vs. cloud: which is the best solution for retail?

A company that wants to grow and stand out in the market needs to invest in digital transformation . But from there, a question arises: should you rely on on-premise or cloud software? This is a very valid question, after all, this choice is made based on the specific reality of your business.

Both on-premise and cloud computing are beneficial, but there are differences that may make a particular model a better fit for your needs. In this text, we will discuss both, covering criteria such as security, cost reduction, and efficiency . Happy reading and happy choosing!

On-premise vs. cloud computing: evaluating the differences

Migrating from digital file storage to digital or automating a system to the cloud raises many questions about which model to adopt. Therefore, we will consider here what characterizes each of the most commonly used models today, so that your company can evaluate which option is best: on-premise or cloud. 

Cloud computing offers cloud services on a platform managed by a specialized company , with the contracting company having full access to the files. Storage is entirely online and virtual in the database without physical media. Some models offer the possibility of phased migration.

In contrast, in the on-premise model, the data storage infrastructure keeps the servers physically located within the company itself .

Let's understand the distinction.

Read also: Public cloud: why is it ideal for your company?

Implantation

In the on-premise model, deployment is done internally within the company, using the existing IT infrastructure . This infrastructure is also responsible for maintaining the solution and associated workflow development .

On the other hand, the cloud computing format hosts all files on the service provider's premises, without local physical storage, but with full access to everything at any time.

Maintenance

The maintenance process also weighs heavily in the choice between on-premise vs. cloud. This is because the former imposes maintenance costs on the company, in relation to server hardware, space, and energy consumption. After all, these servers need to be running 24/7 in a cool and secure location.

The second model, on the other hand, aligns with the format chosen by the company, which can also be hybrid. However, in the cloud storage format, the costs of maintenance, upkeep, and updates are the responsibility of the company providing the support, thus reducing costs .

Monitoring

In an on-premise environment, with files stored within the company itself, control is exercised by the employees themselves, which also demands technical knowledge to solve certain problems , in addition to the effort and routine tasks of the IT team , keeping them constantly occupied with tasks that are not strategic for the growth of the business.

The cloud format, on the other hand, offers data security and encryption under the control of a third-party provider , who monitors all activities and is responsible for providing solutions in unexpected cases.

most of these routine tasks through specialized monitoring tools

Read also: LGPD and its impact on IT: everything you need to know to comply.

Security

Security is now a requirement for any digital service , so the choice between on-premise or cloud should be made considering the security demands of the business and the functionalities that each model offers.

In this sense, the on-premise option allows for control over the storage of extra confidential information in physical environments, which may seem more reliable to some companies. However, this view is limited, since physical systems are more prone to electrical and digital security failures than one might think.

Cloud computing, on the other hand, features advanced encryption capabilities to prevent hackers from accessing the data , as well as a modern and structured access control system to ensure the security of stored data.

Costs

As mentioned earlier, the on-premise model requires a higher investment in the purchase and maintenance of hardware and local storage capacity, in addition to other expenses inherent to physical files: cabling, equipment, repairs, upgrades, and energy consumption.

The costs for the cloud format, on the other hand, are included in the provider's contract package, and the provider covers maintenance and infrastructure , with no additional expenses throughout the usage period.

On-premise server or cloud: which is the best alternative for my retail ERP?

The choice of the ideal model will be defined by the needs of each business. However, the more we observe that the reality of the consumption model has changed in recent times, the more cloud-based ERP .

This is largely due to the widespread adoption of online stores and services by customers , requiring them to ensure faster, more interactive, intuitive access with security certification.

Furthermore, having files in the cloud under the control of a specialized company ensures the constant updating of processes and workflows, in accordance with the reality of the business, promoting greater interactivity between employees, collaborators and clients, and reducing costs associated with the information technology team.

Let's look at other advantages.

Read also: Why is cloud software different from traditional software?

Advantages of migrating your ERP to the cloud

1) Governance and Compliance

The regulatory frameworks defined by the General Data Protection Law (LGPD), regardless of the sector, require international certifications and ISOs that increase data security and guarantee visibility with quality seals for companies that maintain them.

Therefore, confidential data must be protected, and the privacy of clients, partners, and employees must be guaranteed.

By using Auto.Sky , a cloud-based solution from Sky.One, your retail business will benefit from cybersecurity by experts in cloud-based ERP management . This service includes Auto.Sky Defender, a tool for monitoring and mitigating brute-force attacks, and anti-malware, providing an additional layer of security for the client.

In addition to 24/7 infrastructure monitoring, we look at all servers for performance, disks, alerts, and security. 

Thus, by ensuring the security of business data, a cloud-based ERP also contributes to the governance and compliance required by Brazilian law. 

2) Scalability

Companies, from small to large, especially in retail, produce a high volume of data. The benefit here relates to the flexibility of cloud storage , with the ability to easily and without bureaucracy purchase more space.

3) Flexibility and availability

With the ability to access files on the cloud platform from different devices, users gain mobility and can check their data from anywhere in the world , as long as they have an internet connection.

This also includes other features such as data synchronization and backup without interrupting access, instant restoration, mirroring, and continuous improvement.

Read also: Server virtualization: what it is, what it's for, and its advantages

4) Best cost-benefit ratio

Another major benefit of cloud computing is its cost-effectiveness, which can be optimized. The primary reason for this is the predictability of expenses , since in the cloud you pay exactly for the service you use .

So, you choose a plan that offers what you need, knowing from the start how much you'll pay for it, with no surprises! Adding scalability to this, whenever you have new demand you can upgrade the service, keeping its price predictable.

Furthermore, working with cloud computing also reduces IT infrastructure costs. With this service, you save on :

• hardware , as it does not require its own server or computers to store its applications;
• software , because it can rely on applications provided by its provider;
• This allows personnel who don't need to focus on maintenance and updates, freeing them up for more important tasks in managing their cloud.

5) Increased productivity

As the cloud has improved and grown significantly, the leading providers in this market offer high-quality service. With these providers, your company has access to a stable and fast system capable of handling large demands.

It's worth mentioning that in the cloud, your employees have the mobility to work outside of company premises and business hours , allowing them to work for much longer periods. Here, your business faces no limitations of time or space!

Another reason that ensures increased productivity with the cloud is the possibility of freeing up your IT team from tasks such as updates, maintenance, and backups . With a cloud provider handling these tasks, your staff can focus on more important and challenging functions , making the company even more efficient.

Read also: Understand how to migrate your SAP applications to the cloud.

Auto.Sky: a solution capable of expanding the benefits of a cloud-based ERP for retail

The cloud is truly very beneficial for your business, but to take full advantage of its benefits, you need professional cloud migration and management . To ensure everything goes as planned, why not partner with a specialist in this area?

Auto.Sky of cloud solutions to meet your diverse needs. With us, you can count on:

• Scalability to ensure you have a service that can always meet your needs;
• availability to work with all your resources anytime, anywhere;
• cost reduction in both hardware and software, as well as in IT staff;
• Updates and maintenance performed by the server itself;
• Cybersecurity with the most advanced cloud security measures, such as backup, user authentication, firewall protection, data encryption, and more;
• Predictability of costs , paying exactly for what you use and being able to modify that value; and
• Multi-cloud , allowing you to combine the best available services, such as AWS, Google Cloud, Microsoft Azure, and Oracle.

At Auto.Sky we offer three different solutions. These are:

1. Auto.Sky Platform : a service for those who need to migrate applications and data, with fast and transparent scalability and per-user payment.
2. Auto.Sky Services : a solution that improves costs for those already benefiting from the advantages of the cloud, with support and management of environments and workload migration.
3. Auto.Sky Business One : a solution that moves your SAP B1 to the cloud, with integrated add-ons.

We hope this text has been helpful in understanding the differences between on-premise and cloud solutions, so you can now choose the best option for your business. If you have any questions or would like to learn more about Auto.Sky solutions, talk to one of our specialists !

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Written by Skyone