On-Premises: What It Is and How It Is Better Than Cloud Solutions

On-premises is a deployment method where the software is installed and runs on servers within the company, rather than in the cloud. All infrastructure remains under the full control of the business.

What are the advantages of on-prem?

On-premises is not just a technical solution but a strategic approach to managing data, security, and costs. When marketers choose tools for their work, it is important to understand how the deployment method affects the business. Let's analyze why on-premises can be a key advantage.

Full control over data

When everything is stored within the company, the business defines its own rules. The system can be configured as needed, without limitations from the provider. For example, if a CRM or CDP is deployed locally, marketing data remains under full control—no leaks through third-party services.

This is particularly important if the company operates in the B2B, banking, or medical sectors.

What is CRM, what types are there, and who is suitable for such a system? Read in the article.

Maximum security

Cloud solutions are good, but they always depend on the integrity of the provider. In the case of on-prem, the company is responsible for data protection:

• Configures firewalls, anti-viruses, and monitoring systems.
• Determines access levels for employees.
• Builds defenses against attacks and internal leaks.

For marketing, this is important if, for example, a proprietary DMP or client analytics is used, where protecting the contact database and interaction history is critical.

Financial benefit in the long run

On-premise solutions require significant initial investment—purchasing servers, licenses, and configuration. But thereafter, expenses only go towards maintenance, without monthly subscriptions that in the cloud can grow alongside data volumes and the number of users.

If the business is large or works with significant amounts of information (e.g., personalized recommendations, complex analytics), on-premises can turn out to be cheaper.

If the company deals with sensitive data, builds complex analytics, or does not want to depend on external providers, on-premises is not just a technical choice, but a strategic decision. It offers control, security, and predictable costs, making marketing processes more stable and efficient.

Disadvantages of on-premises

On-premises is not suitable for all businesses. Let's discuss the key challenges companies face when choosing local solutions.

Significant start-up costs

The cloud operates on a subscription basis: pay and use. With on-premises, it’s more complicated. Servers, licenses need to be purchased, and infrastructure configured. If the company is large and works with data globally, costs increase.

This means that launching new marketing tools might depend not only on business needs but also on the company's readiness to invest in IT infrastructure.

Maintenance costs

Local software is not simply "buy it and forget it." Servers need to be serviced, updated, and protected from failures and attacks. This requires IT specialists who will monitor the system, conduct updates, and troubleshoot issues.

If the company has complex client analytics, it will have to budget not just for marketing tools but also for the support of these solutions.

Less flexibility

Cloud services scale in seconds: if more power is needed, just change the plan. This is not possible with on-premises. If the business grows, additional equipment must be purchased, configured, and checked against the current system.

Which businesses will benefit from on-premises

On-premise is not a one-size-fits-all solution. It requires investment but provides control. In marketing, it’s important to understand when local infrastructure is not just a technical choice but a strategic advantage.

Below, we’ll discuss which businesses are suited for on-premise solutions.

Companies with special security requirements

If the business deals with sensitive data, storing it in the cloud means relying on the provider and its level of protection. In on-premises, everything stays within the company. This is especially important for:

• Banks and financial sector — client accounts, transactions, payment histories, customer databases require maximum protection.
• Healthcare organizations — patient data is highly sensitive and often subject to strict privacy regulations (such as HIPAA in the U.S.). This information cannot be shared with third parties without explicit consent, and data protection standards are especially rigorous.

Large businesses that do not want to rely on a provider

Cloud services operate on a subscription basis, and the more data and users, the higher the costs. In large corporations, cloud expenses can rival the purchase of their own equipment.

On-premises is beneficial if:

• The company works with large volumes of data (e.g., retail analytics, personalized recommendations).
• 100% customization is required — for instance, if a CRM or CDP requires deep integration with other internal systems.
• The business wants to avoid unexpected expenses — cloud tariffs can change. With local solutions, controlling the budget is simpler.

Companies with strict speed and data availability requirements

The on-prem version ensures predictable performance because it does not rely on the provider's servers. This is important if:

• The business operates in a geographically distributed network (e.g., a retail chain has hundreds of stores, and disruptions in the cloud will lead to failures in cash systems).
• It is important to guarantee operation 24/7 — for instance, in e-commerce, any server downtime can mean lost orders.

On-cloud solution – are there benefits?

Cloud solutions are a method where software and data reside on the provider's servers, and access to them is done via the internet.

With cloud services, there's no need to think about where to place the equipment and who will monitor it. The provider takes care of all technical concerns. This means:

• No need to allocate a budget for purchasing servers.
• No maintenance costs — the provider updates the system and makes backups.
• You can work from anywhere in the world — all you need is internet.

If the business grows and requires more power, it’s sufficient to change the plan. In on-premises, new equipment would have to be purchased, specialists hired, and time spent on integration.

Why is it convenient for some businesses to work in the cloud?

1. Quick access to data. In the cloud, the marketing team can work with CRM, analytics, or advertising cabinets without being tied to the office.

2. Speed. If new users need to be connected or functionality expanded, this can be done in a few clicks. In on-premises, this might take longer.

3. Integration with popular tools. Many services used by marketers (Google Analytics, advertising platforms, CDP) operate in the cloud, making it easy to connect them with each other.

What are the disadvantages of on-cloud?

Cloud solutions have several serious downsides. Firstly, data is stored on third-party servers, which increases the risk of leaks. If someone gains access to the cloud, it can lead to the disclosure of confidential information—from personal data to financial details.

Another disadvantage is the potential for high future costs. Cloud services operate on a subscription basis, and over time prices can rise. Additionally, there are often extra costs.

There is also a risk of data loss. Due to technical failures or force majeure, information stored in the cloud may be lost. Without reliable backup systems, recovering data can be difficult.

On-premises deployment of Altcraft: full control over data

The Altcraft Platform can be deployed within a corporate infrastructure, allowing control over the storage of client data. This solution is suitable for companies for which security is a priority. All work with confidential information remains inside the organization.

The platform uses an Open Source technology stack, which reduces Total Cost of Ownership—there's no need to purchase licenses for databases or operating systems. The scalable architecture can handle large volumes of data and high loads without restrictions on message sending.

Hosting Altcraft on-premises ensures not only information security but also flexibility. The company chooses how to configure the system and can order customizations according to its tasks. The pricing system is transparent: all features are included upfront, without limits on data volume and sending. And prompt technical support helps resolve any issues without delays.

Conclusion

On-prem is the deployment of software on the company's own servers, without reliance on cloud providers. This approach provides full control over data, compliance with security requirements, and flexibility in system configuration.

Advantages: security, absence of regular subscription payments, ability to control database storage.

Disadvantages: high initial costs, need for support and updates, complexity in scaling.

Who is suited for on-premises? Large and medium businesses dealing with confidential data, financial and medical sectors, companies with special requirements for fault tolerance.