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    Cloud vs On-Premise

    Where does your IT infrastructure run best? Compare cloud and on-premise on cost, scalability, security and compliance, and find out which option suits your business.
    • 5.0 on Google (104 reviews)

    Key Takeaways

    • Cloud needs no upfront investment and runs on an OpEx basis (pay as you go)

    • Scalability: the cloud scales within minutes, on-premise takes weeks

    • On-premise gives you full control over data and compliance

    • Hybrid cloud combines the best of both worlds for many SMEs

    Cloud or your own server: which suits your business?

    Choosing between cloud and on-premise is one of the most important IT decisions any growing business makes. More and more Dutch SMEs are moving to the cloud, but that doesn't mean on-premise is a thing of the past. The right choice depends on your company size, budget, compliance requirements and growth expectations.

    With a cloud solution, your IT infrastructure runs in data centres operated by providers such as Microsoft Azure, Amazon Web Services (AWS) or Google Cloud, and you pay monthly for what you use. With on-premise, you invest in your own servers, housed in your office or in a colocation facility.

    TRON Group helps businesses with both options. We offer cloud migration, cloud management and server management. Our advice is always based on your specific needs, not on what we would most like to sell.

    Feature-by-Feature Comparison

    How do cloud and on-premise score on the criteria that matter most to your business?

    CategoryCloudOn-Premise
    Upfront costs

    Cloud

    No large upfront investment; pay as you go (OpEx model)

    On-Premise

    High purchase costs for hardware, licences and implementation (CapEx)

    Monthly costs

    Cloud

    Recurring subscription costs, which can add up with heavy resource use

    On-Premise

    Lower monthly costs once the investment is made, but power and maintenance still apply

    Scalability

    Cloud

    Scale up or down instantly, with resources available within minutes

    On-Premise

    Scalability limited to available hardware, with lead times of weeks

    Security

    Cloud

    Enterprise-grade security from Microsoft/AWS, under a shared responsibility model

    On-Premise

    Full control and your own security policy, but the responsibility is yours too

    Compliance (GDPR)

    Cloud

    EU data centres available, plus the providers' compliance certifications

    On-Premise

    Data stays under your own management, with full control over where it is stored

    Disaster Recovery

    Cloud

    Built-in redundancy, geo-replication and automatic backups

    On-Premise

    Needs a separate DR solution, extra investment and a second location

    Remote Access

    Cloud

    Access from anywhere over the internet, ideal for hybrid working

    On-Premise

    Requires VPN or remote desktop, plus extra configuration

    Maintenance

    Cloud

    The provider manages hardware and updates, so you need fewer IT staff

    On-Premise

    You are responsible for updates, patches and hardware replacement

    Cost Comparison

    Indicative costs for cloud vs on-premise by company size

    Small (5-15 users)

    Cloud Basic€500-1,500/month
    • Microsoft 365 licences
    • Azure VMs
    • Cloud backup
    • Management included
    On-Premise Basic€15,000-30,000 one-off
    • Server hardware
    • Windows Server licences
    • UPS system
    • Installation and configuration

    Medium (15-50 users)

    Cloud Professional€1,500-4,000/month
    • Extended cloud infrastructure
    • Disaster recovery
    • 24/7 monitoring
    • Managed services
    On-Premise Pro€40,000-80,000 one-off
    • Redundant servers
    • SAN storage
    • Firewall + IDS
    • Server room fit-out

    Large (50+ users)

    Cloud Enterprise€4,000-15,000/month
    • Hybrid cloud setup
    • Multi-region DR
    • Compliance tooling
    • Dedicated support
    On-Premise Enterprise€100,000+ one-off
    • Data centre-grade hardware
    • Full redundancy
    • In-house IT team
    • Failover site

    Hybrid cloud: the best of both worlds

    More and more businesses are choosing a hybrid approach. You combine on-premise infrastructure for sensitive data and latency-critical applications with the cloud for scalability, backups and remote working. That gives you the control of on-premise with the flexibility of the cloud.

    A typical hybrid setup includes a local server for Active Directory and file storage, combined with Microsoft Azure for email (Exchange Online), collaboration (SharePoint/Teams) and disaster recovery. This is often the most cost-effective solution for SMEs with 20-100 employees.

    Want to know which infrastructure suits your business best? Get in touch with our IT consultants for a no-obligation consultation. We'll produce a TCO calculation and recommend the optimal architecture.

    Our Recommendation

    Choose Cloud if:

    • You don't want to make a large upfront investment in hardware
    • Your employees work remotely or hybrid
    • You want to scale up and down quickly as your business grows
    • You don't have IT staff to manage hardware
    • Disaster recovery and business continuity are important to you

    Choose On-Premise if:

    • You have strict data sovereignty requirements
    • You run latency-sensitive applications (CAD, video)
    • You need to process large volumes of data locally
    • You don't have a reliable internet connection
    • You have recently invested in a server environment

    TRON Group's advice: For most SMEs, we recommend a cloud-first or hybrid strategy. For most organisations, the benefits of scalability, disaster recovery and remote working outweigh the higher monthly costs.

    We help with cloud migration, cloud management and server management. Call +31 85 303 5869 for a free consultation.

    Frequently Asked Questions

    Answers to common questions about cloud vs on-premise

    Cloud or on-premise? We'll help you choose.

    Book a no-obligation consultation and receive a tailored TCO calculation. We analyse your current situation and recommend the optimal infrastructure.

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