Cloud vs On-Premise Hosting

What exactly is the cloud?

As we head into 2026, there is no doubt that the cloud has been the number 1 topic of conversation for businesses concerned with their IT over the past decade. From the tech-savvy communities to team members still learning to use Microsoft Teams, the cloud has taken centre stage. We saw it become an essential part of systems in the pandemic, and this has carried on with the large number of businesses doing hybrid working environments. But do you know what the cloud and its benefits actually are?

To put it simply, it’s a way of accessing computing power, storage, applications, and security over the internet instead of running everything on local servers. But there are still uncertainties, like how does it compare to traditional On-Premise? And also, what’s the right solution for your business? To help you make up your mind, we’ve made some key comparisons:

Cost

On-Premise

With on-premise software, companies without their own server infrastructure in place will incur significant expenses to set up a proper environment, as you need the right power, space, and resources before being able to utilise the technology. The main pricing model for an on-premise solution is usually a one-time payment, however the main drawback here is that the cost is usually extremely high.  Plus, you still need to budget for upgrades, maintenance, IT staffing, and hardware replacement every 3–5 years.

Cloud

As this is deployed by third-party servers, cloud solutions don’t generate additional costs for infrastructure and maintenance of the server. Pricing models for operation can vary with different subscription plans, offering flexible monthly payments that can scale with your business. In 2026, pricing flexibility is greater than ever, with per-user, per-service, per-usage, or AI-assisted workload-based options. Using the cloud means you only need to scale when it suits your business, giving more cost control than on-premise.

Deployment

On Premise

Selecting an on-premise environment means that your resources are all deployed in-house, within your own IT infrastructure. You maintain all hardware, software, updates, backups, and security. This means you have full control, but also the responsibility over downtime, outages, and fixes, should anything go wrong. This is a big risk, especially with the 50% rise in major online attacks seen in the last year.

Cloud

However, Cloud environments can be public, private, or hybrid, giving you more deployment options than ever. Public cloud services run on your provider’s systems, giving you quick setup, easy and reliable access from anywhere, not just within your own office. Private cloud gives you your own dedicated environment with more control over how everything is managed. However, you still have access to all of your resources, as often as you want, and whenever you want.

Security

On Premise

Operating with an on-premise solution means your business is responsible for security, including setting appropriate user access policies, installing antivirus software, and guarding against cyber-attacks. As attacks grow more sophisticated each year, this can leave an organisation vulnerable to security threats.

Cloud

Whilst cloud breaches often make the news, effective cloud providers now offer far more advanced, AI-driven security than what businesses can replicate internally. The extreme levels of security and frameworks that cloud service providers put in place are among the most secure hosting options available today.

So, what next? The team at Wavetree have years of knowledge in both areas of hosting, and our friendly team will be happy to help you figure out what is best for your business. The cloud offers a secure, scalable and affordable solution to hosting, however some people still have their doubts. Whether you’re interested in opting for an on-premise solution, or you’d like to discuss the opportunities that the cloud can bring to your business, please get in touch to talk to our team of experts.

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